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In a call on an episode of The Ramsey Show, a 73-year old Arizona resident named Robin shared that she has no 401(k) or mutual funds and more than $12,000 in outstanding student loan debt \u2014 but is considering a home purchase within the next three years.<\/p>\n
Host Dave Ramsey<\/a> then asks, \u201cHow would you be able to buy [a house] if you don\u2019t have any money?\u201d Robin says she expects to pay off the student loan by March this year and is setting aside a modest amount for a down payment every month.<\/p>\n<\/p>\n Ramsey suggests she cash in her insurance policy, pay down her student loan faster and maximize her down payment savings right afterward. \u201cBasically, you\u2019re going to live on beans and rice for the next three years.\u201d<\/p>\n Robin isn\u2019t alone. According to a study commissioned by the ALI Retirement Income Institute, the majority of Americans who will turn age 65 between 2024 and 2030 are not financially prepared for retirement.<\/p>\n If you\u2019re concerned about being stuck in the same situation, consider these three ways to boost your retirement savings<\/a> on short notice.<\/p>\n When Ramsey suggests Robin \u201clive on beans and rice\u201d he doesn\u2019t mean it quite so literally, but rather that living a frugal lifestyle and cutting spending where you can can help you boost your savings. So skip the steakhouse dinner and make some pasta at home.<\/p>\n While spending money is inevitable no matter how frugal you are, using a tool like Acorns \u2014 an automated savings and investment app<\/a> \u2014 can make the most out of your spending.<\/p>\n When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and puts the excess into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.<\/p>\n Plus, Acorns lets you customize how you save. With an Acorns Silver<\/a> plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold<\/a>, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.<\/p>\n Story Continues <\/p>\n When you sign up now, you\u2019ll get a $20 bonus investment<\/a>, too.<\/p>\n Another excellent way to grow your savings safely is with a certificate of deposit. CDs offer a guaranteed rate of return, and those rates are usually higher than your typical savings account. You can choose how long to lock in your investment, and so they\u2019re suitable for both short- and long-term savings.<\/p>\n Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.<\/a><\/p>\n You can boost your passive income by reinvesting it for a short period. A Dividend Reinvestment Plan, or DRIP, can allow you to deploy your regular dividends into acquiring more stock. These programs can expand your nest egg considerably.<\/p>\n For example, Walgreens Boots Alliance Inc. (WBA) currently offers a 11.03% dividend yield. Implementing the company\u2019s DRIP program could double your capital in nine years, depending on the stock’s performance during that time.<\/p>\n Some life insurance policies allow you to cash out a certain amount before maturity. If a policy is no longer needed, consider this option to boost your retirement savings \u2014 but only as a last resort.<\/p>\n You may want to consult your tax professional or financial advisor<\/a> before pulling the trigger.<\/p>\n Life insurance can help protect your loved ones from unanticipated costs but policies can vary. Some policies pay a portion of the benefit while the policyholder is still alive, which could ease the burden of unexpected expenses in retirement.<\/p>\n Term insurance is usually a less expensive and more flexible option than whole life coverage. If the insured individual dies during this term, the policy pays a death benefit to the designated beneficiaries.<\/p>\n Young families and busy professionals looking for fast and affordable insurance can easily connect with Ethos and get term life insurance in 5 minutes<\/a>, with no medical exams or blood tests.<\/p>\n With Ethos Insurance, you get a policy with up to $2 million in coverage, starting at just $2\/day. Ethos\u2019 application process ensures you get flexible coverage options<\/a> quickly and transparently, allowing you to focus on what matters most.<\/p>\n If you need more guidance, speaking with a financial advisor<\/a> is always a great idea.<\/p>\n Finding a financial advisor simple with Advisor.com<\/a>. There, you can find the right financial professional to help you fulfill your wealth goals. It\u2019s a free service that helps you find the right financial advisor for you,by matching you with a small list of the best options for you to choose from.<\/p>\n