13 Everyday Habits That Destroy Your Retirement Fund

1. Spending Now Rather Than Saving for Later

Erik C. Olson, a certified financial planner with Arete Wealth Management said it’s much easier to focus on the present than to think about the future. After all, finding room in your budget to save for retirement might not seem as important when bills are due. But if you take a good look at your spending, you can find ways to trim the fat so you can set aside more money for the future and actually retire someday.

For example, Olson said you can lower your monthly expenses by hundreds of dollars by dining out less, opting for a cheaper cellphone plan, cutting the cost of cable TV — or eliminating it — and getting rid of credit card debt.

“Maybe you’re thinking, ‘Well, that wouldn’t be as much fun,’” he said. But ask yourself how much fun it would be to work the rest of your life because you can’t afford to retire.

The sooner you start saving, the more time you’ll have to grow your money. “What you save and invest in your first five to 10 years can grow to be the majority of your portfolio at retirement, even if you keep saving and investing for decades more,” said Olson. “Compounding growth is that powerful.”

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