**Senior Couple on Desert Road Sitting on Motorcycle**
You’ve probably been told throughout your life to save more for retirement. You had good intentions in following that advice, but life happened. Various events caused you to dip into those savings, and now you’re worried you might not have enough for retirement. Now that you’re in your 50s, it may feel like you’ll never catch up enough to be comfortable during your retirement years.
While it’s true you don’t have the same benefit of time as a 20-year-old, there are still steps you can take to improve your situation. You still have several more working years ahead. It’s going to require some adjustments to both your budget and your mindset.
**Create a Financial Plan**
Retirement, typically around age 65, isn’t that far off if you’re in your 50s. Skipping a financial plan might be tempting because it feels too late, but it’s crucial. Think of your retirement plan as a roadmap.
Part of your plan should include a budget. List all your expenses and all your income. See where you can cut costs and find ways to increase your income. This combined effort can make a significant impact on your savings.
Don’t count on Social Security when planning. Try to estimate your living expenses without it. If you can manage without this money, receiving it will be an added bonus.
**Eliminate Your Debt**
While this article isn’t focused on debt, eliminating it is essential for saving more money. There’s plenty of advice online to help you tackle debt. Once you’re debt-free, you’ll find it easier to increase your savings quickly.
**Learn How to Invest**
If you’re over 50, recovering from bad investments is much harder. You could hire a financial adviser, but if they’re not competent, you could end up worse off. Educate yourself on investing. Numerous resources are available online to teach you the basics. Avoid any schemes that promise quick returns and focus on long-term investment strategies.
**Passively-Managed Investing**
One way to ease into investing without deep knowledge is to set up automated monthly contributions into an S&P index fund. Beating the performance of the S&P 500 is challenging, even for professional money managers. Over time, most stocks tend to follow the index’s performance.
**Income Diversification**
Investing in stocks isn’t without risks, as seen during the financial crisis of 2008. While younger individuals can recover, those over 50 have less time to bounce back. Diversify your income streams to help mitigate future financial shocks.
One effective way to diversify is through real estate. Despite what some financial experts argue about stocks outperforming real estate, these views often don’t account for rental income. When you include income from rentals, real estate can be very lucrative.
Rental properties offer a steady stream of passive income. However, be cautious of over-leveraging. Using current properties as collateral for future purchases can backfire if things go wrong, potentially wiping out your wealth.
**Forget the Hail Mary Pass**
In football, a Hail Mary pass is a long shot taken when time is running out. Similarly, in finance, you might be tempted to take big risks to catch up on lost savings. However, these risky investments can deplete your savings if they fail. Instead, focus on steady, calculated strategies.
**Other Considerations**
If you’re over 50 and haven’t saved much for retirement, find ways to maximize your earning potential. You may need to work longer than originally planned. Continuing to work after declaring retirement might also be necessary. If property taxes are high, consider downsizing or moving to a more tax-friendly state. Some states have no state income tax and lower property taxes.
Even if you’re over 50 and behind on your retirement savings, there’s still hope. With discipline, dedication, and sacrifice, you can grow your savings. The effort you put in now will pay off in the long run.