Saving to retire and get out of debt do not exclude each other, but far too often people give up one thing to do the other. Although it is important to reduce your Cú Chulainnast debt when you start your retirement, you do not want to sacrifice pension savings to do so. Of course, retirement without debt is an enviable position to be in, but if it means that you have not saved money for living expenses, it quickly becomes an untenable situation.

From budgeting for both consolidating your debt to a lower interest rate, here’s a look at four ways to get rid of debts and save for your retirement at the same time. (See also: The 7 best ways to get out of debt and Pension saving: how much does it cost?)

Apply your strategy on your retirement date

Apply your strategy on your retirement date

How aggressive you are The conditions of saving for retirement will depend on your age. If you are going to trade the suitcase for golf clubs in a few years, then saving is the main priority. However, if you are 20 years or older before your retirement, your attention should go to reducing your debt. That does not mean that you do not save while paying off your loans, but that you may have to spend less on the amount you save to get out of debt.

Consolidate your debt into a lower interest rate

Consolidate your debt into a lower interest rate

Some debts are better than other types of debts; however, all consumers ultimately want to be debt-free. When eliminating debts, it is important to tackle the loans with the highest interest first. After all, the higher the interest, the more it will cost you to pay it.

If you owe money to multiple lenders, combining everything into one loan can make it easier to pay every month. But don’t rush in here. Consolidation only makes sense if you get a better interest rate on the debt. You do not want to consolidate to make it easier and ultimately pay more. Beware of loans that consolidate all your debts and you pay the same amount every month for a certain number of years. They usually come with high interest and costs. (Read more: How to manage your debt and consolidate.)

As an alternative: “If you have outstanding debts, you should check if there is a possibility to pay it, even though the IRS considers debt that has been canceled, canceled or taxed income”, says Carlos Dias Jr. ., wealth manager, Excel Tax & Wealth Group, Lake Mary, Fla. “Make sure you weigh the pros and cons.”

Benefit from business match programs

Benefit from business match programs

Retirement can easily last more than 20 years, which means that you have to collect a fairly large nest egg. That seems impossible if you’re in debt. One way to increase your retirement savings for free is by using your company’s 401 (k) match program, if one is offered. Many employers will pay employee contributions up to a certain percentage. That is free money, so you should maximize the competition, no matter how much debt you have. Let’s say your business will match up to 6%. You must ensure that you contribute 6% to your 401 (k), so that you can receive the full amount.

“At the very least, I like that customers are contributing enough to receive the competition. I don’t want them to put money on the table,” says Marguerita Cheng, CFP®, CEO of Blue Ocean Global Wealth in Rockville, Maryland. ” They are also realizing tax savings today that can increase their cash flow. “

Downsize your lifestyle

Downsize your lifestyle

Paying off your debt and saving for your pension is possible, but it may require a list on your part. Saving costs that free up more money to save or reduce your debt may mean skipping or eating trips to the coffee house instead of eating out three times a week. Giving up your landline, reducing your mobile phone bill and shopping during sales are other relatively expensive ways to free up some cash flow.

If the debt is high and you are almost retired, selling an expensive home and moving to a cheaper home can help you improve your debt and retirement savings situation. The idea is to free up money so that it can be used for those two important goals.

Budget for both goals

Budget for both goals

Budgeting is the cornerstone of any healthy financial plan and it can be easily applied to save and pay off your debt at the same time. Once you have your debt in order and you find out how much you should live comfortably in your pension, you can devise a budget and reserve money for each purpose. Again, your time horizon and the interest rates on your loans determine which is paid first and how much is put into savings. But setting a budget and sticking to it can be a long way to get out of debt without sacrificing one of the most expensive things you come across: retirement.

“Budgeting is a mindset. We must want to do it. We must want to get out of debt,” says Craig L. Israelsen, Ph. D., designer of the 7Twelve Portfolio and executive-in-residence in the financial planning program at Utah Valley University in Orem, Utah. “Spending can become addictive, so we have to consider it as a potential addiction. Addiction recovery requires a higher level of involvement. Look for someone to be accountable to if you have a tendency to spend.”

The bottom line

The bottom line

Debts and saving for retirement can go hand in hand if you come up with a plan to tackle both at the same time. Far too often, people mistakenly assume they have to do one or the other, and that can ultimately hurt them.

If you take full advantage of company-sponsored retirement savings programs to consolidate your debt into a lower interest payment, there are many ways to reduce your Cú Chulainnast debt without sacrificing your retirement.