Saving for retirement might sometimes feel like a lofty goal. But according to Suze Orman, money expert and co-founder of SecureSave, it doesn’t have to be.
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In the Dec. 11 edition of her “Money Monday with Suze Orman” newsletter on LinkedIn, Orman wrote that contributing the maximum amount to an IRA in 2024 ($7,000 for those below 50 and $8,000 for those over 50, provided that adjusted gross income qualifications are met) can “seem unobtainable.”
However, Orman — who noted that it’s smart to save in a Roth IRA because withdrawals will be 100% tax-free upon retirement — explained that the “trick is to break it down into more manageable bites.” She suggested it’s “often easier to tackle a savings goal once you convert it to smaller amounts.”
For people under 50, Orman indicated that contributing $7,000 in 2024 works out to less than $20 per day. As for people over 50? “Less than $22 a day,” she pointed out.
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Orman advised taking a “fresh tour through your monthly spending” and not necessarily seeking one big savings — as “maybe there are three to five different expenses you could cut or trim to get you to your goal.”
For instance, consider your Netflix bill. If you’re paying $15.49 for a standard package without ads, you might opt for the $6.99 standard package with ads. If you’re spending $14.99 a month on Amazon Prime but realize you’re not ordering much from the retailer, you can cancel your membership. Making those two changes would amount to saving $23.49 a month (before taxes), which you can place in your Roth IRA account.
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This article originally appeared on GOBankingRates.com: Suze Orman: How To Maximize Your Retirement Savings With Just $20 per Day
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