It's hard to believe that we're getting toward the end of 2023. But at this point, summer's long gone, the weather is cooling, and people are already gearing up to start their holiday shopping. And that means you have less than three months to meet the retirement savings goal you set for yourself this year.
Now if you're saving for retirement in an IRA, you're in luck. You get until the 2024 tax deadline to finish making contributions for 2023.
But any 401(k) plan contributions you want to count for 2023 need to be in your account by December 31. So you may want to make these moves in the coming weeks to help ensure that you're able to fund your retirement savings to the best of your ability.
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1. Pick up a side hustle
Working a second job on top of a main one isn't easy. After all, you need some downtime. But if you're willing to hustle for about 10 weeks or so, you might boost your income nicely and free up a good amount of cash for your retirement savings.
Plus, with the holiday season approaching, now's a great time to pick up a temporary gig at a local retailer or restaurant. Ask around to see who's hiring, but do so immediately. Many businesses aim to be fully staffed for the holidays by early November, which means now’s when a lot of them are likely to be conducting interviews.
2. Cut expenses
It's hard to think about cutting expenses when the holidays are right around the corner. But if you're able to slash your everyday spending, you could free up a lot of money for retirement savings purposes.
Think about your daily habits -- things like buying coffee at a local cafe and hailing a rideshare after a late night at the office instead of taking the bus. If you're willing to slash expenses like these for a few weeks, you might make good progress on your savings goal late in the year. And if you so choose, you can start spending again on those luxuries once the new year rolls around.
3. Prioritize accounts that give you extra money
You may be saving for retirement in more than one account. But since the clock is ticking down on 2023, it's important to prioritize those accounts where there are matching dollars to be had.
It's common for employers to offer a match for a 401(k). So if you haven't snagged that match in full, pump extra money into your 401(k) before funding an IRA you're maintaining on the side.
Similarly, some employers offer HSA matches. Your HSA can serve as a backup retirement plan, because once you turn 65, non-medical withdrawals are no longer penalized. So it could pay to prioritize your HSA over an IRA as well.
You may be worried about meeting your retirement savings goal for 2023 now that the year is winding down. But a few savvy moves on your part during the next two and a half months could make it so you're able to close out the year feeling proud of what you've accomplished.
