You surely know that the more you can sock away, the more it can grow over time, but it’s helpful to see just how much of a difference saving more aggressively can make for your results. For example, if you only have 15 years until you retire and you haven’t saved enough, contributing $20,000 annually to your retirement accounts instead of $10,000 might boost your results from close to $300,000 to close to $600,000 — quite a difference.
Doubling your savings is far easier said than done, of course. You may only be able to up your savings by 25%. But even that can make a meaningful difference in your results. Thinking outside the box can help you arrive at some possible ways to increase your income, in order to increase your savings. For example, you might take on a side gig for a few years, perhaps tutoring kids online, giving language or music lessons, making and selling things online (such as jewelry, candles, sweaters, or soaps), doing freelance work, or driving for a ride-sharing company.
2. Aim to beat — or meet — the market’s return
Next, be sure you’re investing effectively. Saving a lot but only parking those long-term dollars in a certificate of deposit (CD) that pays just 1.25% isn’t going to get you far. Similarly, investing in mutual funds that deliver mediocre results is suboptimal, too.