The sooner you start putting aside money for retirement, the more you might have once that highly anticipated day arrives. Saving for college tuition, purchasing a new home, unforeseen medical expenses, or life’s other necessities, surprises, or even enjoyments can cause investors to postpone saving. Starting the retirement planning process late in one’s life can be daunting, but it is by no means impossible.

Crunch the Numbers
The first step to getting back on track is to put together a budget this will force you to focus on your financial situation and can serve as a road map to success. Once you have outlined all of your expenses, simply subtract the total from your net income. The result will give you a clear
indication of how much you can potentially save, and also help you identify areas in which you may be spending too much.

Cut Any Unnecessary Expenses
There are essential expenses that cannot be eliminated: food, electricity, etc. However, most people can identify some areas, like entertainment, that are not vital to one’s existence and can be cut back on. The more areas that you can trim will lead to more money that can be earmarked for retirement.

Consider Catch-up Contributions
Catch-up contribution limits allow investors age 50 and above to increase their contribution. For example, they can make an extra contribution of $6,000 to their 401(k) for the 2015 tax year, equating to a maximum contribution of $24,000 per year. IRA catch-ups are $1,000 for the 2015 tax year, leading to a maximum annual contribution of $6,500.

And remember, it is not too late to make a contribution for 2014. The IRS allows you to contribute to the previous year up until the normal federal tax deadline.