Working for yourself and from home comes with many benefits but do you know how to save for retirement when you work from home? But like anything in life, it has its downsides, too. For example, you will not have an employer to help you with funding your retirement. Now, that doesn’t mean working the rest of your life, it just means you might need to plan a little more than others. Below are the steps you should take to save for retirement while working from home.
As in today, if possible. Begin putting money away to help fund your retirement. At the very least, try one of the savings jar ideas you see online—such as one cent today, two tomorrow, and so on. When it comes to living comfortably in your later years, every little bit will count.
This may take a little longer, but you still do not want to put it off for a significant amount of time. Make it a goal that within three months, you will have your budget worked out to where you can save a specific percentage of your income each month to use for your retirement. What should that percentage be? Well, that will depend on what you can actually swing. Most financial advisors will recommend that you begin with a minimum of 10% of your income starting in your 20’s and increase that percentage as you age.
Individual Retirement Accounts are a great way to make sure you have the funds you need to retire comfortably. There are multiple types you can use, though SEP-IRAs are recommended for self-employed workers. These can be a bit complicated to navigate, so it is best that you work with a financial advisor.
Never do this, not even once. This is one of those situations where once you start, you won’t stop. Instead, make a separate emergency fund that you can use should things get tough. This will remove the temptation.