Struggling to Fund Your 401(k) in 2024? 3 Things to Do Now

If you're having a hard time funding your 401(k) plan this year, I honestly wouldn't blame you. How are you supposed to find the money when you're probably spending extra on everything from rent to grocery costs to utilities?

And okay, maybe you are spending a bit of your paycheck on fun things each month. That's understandable. It's hard to psych yourself up to save and invest for retirement when it means having to skip out on fun outings with friends or deny yourself a much-needed vacation.

But the reality is that if you don't put any money into your retirement savings, you might set yourself up to struggle later in life. The average retired worker on Social Security today only gets $1,915 per month, or about $23,000 a year. That's hardly a formula for a comfortable retirement. So if you've been having a hard time finding cash for your 401(k) this year, here are some steps to take ASAP.

1. Aim to snag your full employer match

The downside of funding an IRA is that all of the money has to come from you. But with a 401(k), you may be eligible for an employer match. This means that if you contribute a certain amount from your earnings, your employer will put in an equal amount, thereby helping your savings grow.

So if you've struggled to fund your 401(k) so far this year, your first step is to find out what your employer match amounts to, and then figure out how you'll manage to sneak that much money into your retirement plan. Employers often match contributions as a percentage of salary. So if you earn $50,000 a year and are eligible for a 3% match, your employer will match up to $1,500 in contributions you make yourself.

2. Do a spending assessment

Denying yourself every fun thing under the sun so you can fund a retirement account is no way to live. But if you take a close look at your spending, you may find that there are one or two expenses you're able to scale back on so you can free up some more cash for your 401(k).

In the next week or so, take a look at recent bank statements and credit card bills, and see where your money is being spent. You may find that there's an expense in there you can shed. Maybe it's a streaming service you don't watch often. Or maybe it's a meal delivery kit you can replace with store-bought groceries.

There may also be some expenses you can reduce without cutting completely. If you normally do a weekly Saturday night dinner at a restaurant with your group of friends, consider skipping it one week out of the month, and earmark the $50 you'd normally spend for your 401(k) instead.

3. Join the gig economy for more money

If you need most of your paycheck for essential bills and can't see yourself freeing up much money by reducing your spending, then it's a good idea to start exploring the gig economy. Yes, you'll be giving up downtime -- which may be harder than giving up expenses to some degree.

But remember, that 401(k) has to get funded at least a little. So something has to give.

Also remember, though, that your side hustle doesn't have to be painful. If you love puppies, sign up to pet sit or walk dogs. If you're great at photography, see if you can advertise your services and do photo shoots for special events. You may even find that you don't mind shuttling people around town in your car for a few hours a week for a ride-hailing service if it puts extra cash in your pocket.

You can't neglect your retirement savings completely. If you do, you might end up unhappy and scrambling to cover your expenses later in life. But these moves could make it much easier to fund your 401(k) -- and get yourself one step closer to a comfortable retirement by the end of 2024.