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Living paycheck to paycheck is stressful enough, and adding in an expense like saving for retirement can seem overwhelming. The good news is that plenty of other people have figured out how to do just that, and if they did, so can you. Undoubtedly, you have heard or read stories of people who worked lower-paying jobs but retired with millions, all from saving and investing frugally and wisely.

So yes, it can be done.

The key is to use strategies that work within your financial limits. By making small but impactful moves, you can gradually build your retirement fund, no matter how tough your current financial situation may look.

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Budget wisely

When living paycheck to paycheck, your budget is your friend, not your enemy. If you want to find funds to invest, you need to look at your budget, revisit your expenses, and find areas where you can trim some fat.

Could you switch to a cheaper cellphone plan? Cut back on subscription services? Small changes like these can free up money to invest. It may even behoove you to consider cutting back on a bigger budget item, like your housing or auto expenses. For example, you could downsize to a smaller and cheaper home, or buy a used car instead of a new one. Your friend, your budget, will show you what your best bets are.

Start small, start now

The best way to invest for retirement when money is tight is to start where you are, with whatever you can manage. Well-known American author and self-help coach and speaker, Tony Robbins likes to say, “If you won’t give a dime out of a dollar, you won’t give $1 million out of $10 million.” The same idea applies here. You have to get into the habit starting where you are.

It is easy to think you need large sums of money to make a difference, but consistency is more important than the amount, especially as you start this process. Begin investing with as little as $10 or $20 per month. Over time, the power of compound interest will help even small investments grow significantly.

Take advantage of employer matches

This can really make a huge difference for you.

An employer match is when your company offers to equal the sum you put away for retirement each month (up to some limit). Employer matches are essentially free money. They can really accelerate your savings. And check this out: A recent study by the U.S. Bureau of Labor Statistics found that 41% of companies that offer a 401(k) plan provide employer matching contributions for up to 6% of employees’ salaries.

See if your employer offers matching contributions to a 401(k) or similar retirement plan; it is one of the easiest ways to build your retirement fund without any extra effort on your part. Even if you are living paycheck to paycheck, contributing just enough to get the match should be a priority.

Automate your savings

A final way to save when money is tight is to set up an automatic transfer into your retirement account from your checking account. That way, you hardly even notice or feel the deduction. Automating your savings also makes it easier to be consistent, as you will not have to think about manually transferring funds each month.

No doubt, saving for retirement when you are living paycheck to paycheck is not easy. That said, with a few smart moves, it really is possible to start to build a secure financial future. Start small, stay consistent, use these tools, and undoubtedly 65-year-old you will thank you.

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