6 Savvy Ways to Save for Retirement

1. Set a goal

Retirement is different for everyone. Some are happy with a modest home in an affordable town with a little travel thrown in there for good measure. Others hope for a more lavish lifestyle with a second home, a country club membership, and frequent travel.

It can be instructive to sit with a financial planner to assess the feasibility of your dream retirement and, if necessary, adjust your expectations. A professional can also suggest where your money can be put to the best use by helping you diversify your savings. They can also determine an appropriate level of risk based on your age and retirement goals.

If you’d prefer to do this independently, there are online calculators, like the one from Smart Asset that can help give you a sense of what’s possible.

2. Understanding what you have coming

A significant portion of your retirement purse will come from benefits like social security, a pension, and/or work-sponsored retirement funds. It’s helpful to look at this retirement income to determine how much more you will need to reach your goal.

Look for “free money.” Does your employer match a percentage of your retirement contribution? If you contribute a certain amount to your retirement savings each year, is there a tax benefit? Take advantage of these options whenever possible. After all, that money is free!

And save those big chunks of change. When you receive a bonus from your employer, get a tax refund, or if you inherit some money, it can be tempting to purchase something pricey or take a trip. Treat yourself a little, but saving financial windfalls can help supercharge your retirement savings.

3. Create a budget

Assuming that you’ll need to supplement your social security benefits and funds from work-sponsored retirement, look at your monthly income and expenses to identify areas from which you can siphon some money each month. Setting money aside on a schedule, especially if those funds are automatically withdrawn, can be a steady and reliable way to build your retirement savings.

You can set up automatic withdrawals through your bank or through apps like Acorns or Chime.

4. Establish smart shopping practices

Get into the habit of shopping wisely as small, incremental savings will add up along the way. An easy first step is to install a browser plugin, like PayPal Honey or Rakuten, to help you save when you’re shopping online. These tools will alert you to available coupons and cashback offer as you browse and they will often test coupons for you at checkout!

Also, join the loyalty programs for the retailers you shop with regularly. For example, with free loyalty programs, like Target Circle and CVS ExtraCare program, you’ll have access to exclusive sales and personalized offers.

Be strategic about when you shop. Get into the habit of taking advantage of sales during 3-day weekends, sales events like Amazon Prime Day, Target Circle Week, or Black Friday, and look for clearance pricing at end-of-season sales.

And when you shop, always use a credit card that offers rewards. For example, a cashback card, like the Bread Cashback American Express from Bread Financial, who I work with, will allow you to earn 2 percent cashback on everything you buy. Those earnings really add up over time!

5. Make your savings work for you

Retirement accounts are a smart bet for long-term saving, but you also want to have some funds that are more accessible in case of an emergency. These days, many banks offer high-yield savings accounts where you can earn upwards of 5 percent, which is a big improvement over that jar in the kitchen or cash tucked under the mattress!

Hopefully, you won’t need to touch those savings until you retire, but it’s there if you need it.

6. Revisit your plan regularly

As your financial situation changes, so should your savings plan. If you are laid off, for example, pull back on saving until you’re back on your feet. Conversely, if your finances improve, save more aggressively. Savings should not be set in stone. Life happens!