Nothing is impossible - You can really save for retirement even when you are broke

Life seems to be a monster when you're broke. You don't have money to live your dreams. You can't shop till your bag drops. You can't have a lovely vacation with your family. What's more, you can't even save for your retirement years.

Really, life can't be this bad!

Like everyone, you would like to save in an IRA or 401k account every year. Obviously, you don't want to spend the golden years of your life in rags. So, what should you do? Live on instant noodles throughout your life after retirement? Not necessarily.

Check out some easy steps you can take to save for your retirement life even when you're financially weak.

1. Open a IRA account with only $10: Are you hesitating to open a IRA account simply because there is not even $1000 in your bank account? Have you finally decided to start saving money so that you can open an IRA account one day? Well, it is not a bad decision to start saving money. I mean, every one has to start this process one day. Having said that, I feel it is a wrong step to wait for the day when you'll finally save $1000.

You can open an IRA account with only $10. There is no mixed monthly contribution, so you won't be under any pressure to come up with a specific amount every month.

Open a IRS account with $50 (if you can afford it) first. Thereafter, make arrangements to automatically withdraw money from your checking account and contribute it to the IRA account. This will help you build your nest egg gradually. Don't take too much stress. If you can only afford to contribute $10, then go ahead and do that only.

Never get demoralized just because you're unable to contribute a big amount to your retirement savings account. Just remember, even a small amount helps to build nest egg.

2. Use windfalls judiciously to retire rich: Too often you forget to save the extra amount you receive every year in form of income refunds and bonuses. Change this habit of yours. Contribute the amount to retirement savings accounts. Remember, you're not depended upon this money to meet your living expenses. So, it would hardly make a difference if you save it.

3. Contribute, contribute and contribute: Make it your goal to increase your contribution amount gradually. This is specially applicable when you contribute a very small amount towards your retirement saving plans. Make it a point to increase the amount by minimum 20 to 30% every year.

If your present financial circumstance doesn't allow you to save 20%-30% every year, then you need to adopt a different strategy. You can increase your contribution by 5% to 10% and see what works best for you.

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