First and foremost, you are not alone since many Americans are in the same boat, not saving for retirement. There are plenty of workers who have debt. Of course, this does not make things better but it helps you understand that you are not the only one with the same problem. Paying a loan for your house or car is very frequent. Another common debt is credit cards. That is probably why many people overspend and do not save for retirement.
Even those who have just started their careers are facing debt due to their student loans. Thus, it is hard to increase your retirement savings It is true that having debt prevents you from achieving your savings objectives. If you happen to have a debt that is higher than $15,000 you could apply for a Debt Relief Program. In this way, you could have a second chance and get over this situation much faster.
The second thing that you could take up is budgeting. Whether you prefer to track all your expenses on your smartphone or on a piece of paper, you should start doing it. Once you have got a monthly list of expenses, you had better check what is not important. Getting rid of unnecessary expenses and finding alternatives will certainly allow you to save some money for retirement.
Have you thought about the possibilities your employer has to offer you for retirement?
If you have just started working and you are new to retirement savings plans, talk to your employer about it. There are some employers who offer to match your contributions to a 401(k) retirement savings plan. By doing so, you could increase your money saved for your future. It is not something to refuse since you will be the one who takes advantage of that money while you are retired.
Another possibility is to work extra and get some more cash. If you do not work long hours, it could be a good opportunity to amortize your debt. This money could also come in handy for unexpected expenses like when your car breaks down. If you saved some money, you could also invest it. Not taking risks can allow you to get some money over time for retirement too.
In order to pay off your debt, it is advisable to get rid of the smallest amount first. Once you manage to pay for the first one, you can move on to the second one. In this way, you can see that it is possible and your motivation to carry on will be higher. This is the snowball method and it worked out for many people like you. Instead of that, you could get rid of the debts that have the highest interest rate. This is the avalanche method. It helps you save money on future interest rates and will allow you to keep it for retirement.