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Strategies for personal finance are so often tied to the ebbs and flows of the financial markets that it can be difficult to keep up. Certainly, the days of a bull market encourage additional investing and less saving, but too often selling occurs when the markets go soft.

To keep a retirement plan robust when everything else seems problematic is a difficult feat to pull off. Yet when your career is said and done, you will need to depend on those savings. How can you manage to keep saving for your retirement while everything else tells you it’s time to dip into the funds? Here are some tips on keeping the plan in constant motion.

1. Keep the percentage of money saved versus money earned intact, no matter how much your income may waver. Whatever percentage you have calculated to be ideal, it will probably seem ludicrous when you can barely pay all your bills. Nonetheless, it should be a time to cut out all the other expenses. Retirement funds should never be compromised. Keep in mind that goal when your career is over, and all the pleasure you plan to take in stepping out of the workforce.

2. Don’t sweat a little short-term debt. It’s natural for any responsible person to stay on top of some short-term debt which has accumulated in the midst of a personal cash crunch. Yet it shouldn’t be done by pulling funds away from retirement savings. Instead, let that debt ride for a little while and keep retirement contributions going. In the short term, a few extra months of debt will not outweigh the benefits of continued savings.

3. Make your calculations carefully. Believe it or not, there are plenty of people out there who are saving too much for retirement. Instead of receiving the windfall they anticipate, they may end up getting hit by a wave of taxation. Keeping too much in the retirement funds can backfire. Careful calculations need to be made early in your career. Trying to predict what type of expenses you will have in retirement is a great idea.

4. Don’t set arbitrary limits on your life. Whether the market has sunk or begun to bulge, don’t let that decide your life’s trajectory. Turning 65 shouldn’t mean the same thing for everyone in the world. If retiring at 67 will make your savings increase substantially, wouldn’t it be worth the extra effort? Another option is to work part-time to make up for the impact tough economic times had on your savings.

5. Always take advantage of tax protection. Saving for retirement should always include a measure of care in the tax department. Though so many people are letting the possibility of a tax-protected plan go to waste, you shouldn’t do so. Having funds taken out of your income automatically is a great way to get it done without effort.

While difficult economic times call for compromise in so many areas of life, your retirement savings should never be the target.

Gnifrus Urquart knows you must begin planning for retirement early. This is why he started his own DIY superannuation and outsourced it to Premier for Self Managed Superannuation Administration.

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