How to Save Money When You're Broke

Forbes: How to Save Money When You're Broke

By Katherine Pilnick

Saving for retirement should be among everyone’s financial goals, regardless of age. No one knows what will happen to the Social Security system over the next generation or two, or what the official retirement age will be in 10 or 20 years.

Ideally, you should start saving early in life, giving you ample time to grow your nest egg to a respectable size. The bigger the stash, the more options you have when you need to tap into it. But with debt following most people throughout life – particularly in the form of student loans, mortgages and credit card balances – it’s hard to find a good time to start putting money aside. That’s why you should start saving for retirement even if you are still in debt.

Sound daunting? Here’s how to set priorities and juggle competing demands.

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More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

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How to Save Mone... By Katherine Pilnick

Saving for retirement should be among everyone’s financial goals, regardless of age. No one knows what will happen to the Social Security system over the next generation or two, or what the official retirement age will be in 10 or 20 years.

Ideally, you should start saving early in life, giving you ample time to grow your nest egg to a respectable size. The bigger the stash, the more options you have when you need to tap into it. But with debt following most people throughout life – particularly in the form of student loans, mortgages and credit card balances – it’s hard to find a good time to start putting money aside. That’s why you should start saving for retirement even if you are still in debt.

Sound daunting? Here’s how to set priorities and juggle competing demands.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Build a Rainy Da... This will come in handy if you lose your job, become ill or otherwise suffer financial setbacks. A good emergency fund is enough to cover living expenses for at least three to six months. While growing this fund, keep up with minimum monthly payments on all of your debts. Then save for retirement.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Take Advantage o... If you are still working, your company is willing to match your retirement savings and you have a small amount of debt, consider just making the minimum payment each month on your debts while funding company plans. If you can, reach the maximum amount that your employer is willing to match. That match will likely make up for the additional interest you have to pay by taking a little longer to pay off your debts. If you have a larger amount of debt, it will usurp more of your income and make it more difficult to set aside funds for retirement.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Factor in Age If you’re older or more financially stable, or if your employer matches your contributions to a retirement account, you’re probably better off saving for retirement while keeping up with minimum monthly payments on outstanding debts.

If you’re younger and your employer offers no retirement benefits, reduce debt before switching gears to retirement planning. Your balance will decrease each month as you become closer to being debt-free. This can free up some cash and save interest over the term of your loan or debt. Another benefit: Reduced debt can improve your credit score, helping you achieve better lending terms in the future. This is important if you have financial milestones before retirement, such as starting a business or buying a home.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Pay Off Credit C... Pay off loans with the highest interest rates first–typically credit cards. Then you can move on to other debts like student loans, auto loans and mortgages. Depending on how much debt you have, this can require a financial commitment for months or even years. It’s important to keep at it until you’ve resolved your debts completely.

Just remember that your objective is to reduce your debts so that you can use your money for retirement. If you then rack up more debt, such as on a credit card, you’ll undo the intended benefits of paying off old loans.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
Becoming Debt-Fr... If you’re nearing retirement and still can’t afford monthly debt bills, it’s time to change your approach so that you can live comfortably through your golden years. Techniques such as debt settlement and debt consolidation can help you take control of your debts and get debt-free faster.

Debt consolidation rolls all your debts and loans into one. It simplifies the repayment process and typically saves you money on interest and fees. Debt settlement, typically considered the better option, actually reduces the amount of money you owe. It can get you out of debt years earlier and save you thousands of dollars.

Once you’re debt-free, celebrate the achievement. You can now use more of your income to save for retirement.

(iStock)

More From Forbes:
Ten Steps To Get Your Retirement Back On Track
25 Best Places For A Working Retirement
10 Best Countries To Retire To in 2013

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.
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