Many people live paycheck-to-paycheck, using their assets to help pay for this week’s needs and wants. While it’s important to take care of basic needs, you can increase your wealth if you think longer-term and make your assets work for you.

Invest in Retirement Accounts
One of the best ways to make your assets work for you is to invest money in your retirement. Some people are reluctant to do this because it takes a bite out of your paycheck. However, putting part of your paycheck into a retirement account is a wise move for a couple of different reasons.

1. Retirement investments are tax-deferred accounts. This means you don’t pay tax when you put money into your account; you pay it when you take the money out. Thus, when you automatically deposit part of your paycheck into your account, you’re only taxed on the portion of the paycheck you keep after the deposit. So putting money in a retirement account saves money in the present as well as saving towards the future.

2. When you retire, you usually make less money than you do when you’re working. This means you’ll me in a lower tax bracket when you get your retirement money–you’ll pay far lower taxes on it than you will if you take the money right now.

3. Retirement funds are usually invested in stocks and bonds of your choosing. If you make wise investments, your retirement fund can grow exponentially and you’ll have a lot more money at retirement than you had when you started putting money away.

Purchase a Long-Term Care Plan
Long-term care insurance pays for your stay in an assisted living facility or nursing home. It also pays for a home health aide to come take care of you if you become incapacitated. Many people skip getting this type of insurance because they don’t see the value of paying for it when they are currently healthy. However, by the time you need long-term care, it’s too late to first begin thinking about paying for it. You can save money by paying into a long-term care plan for many years rather than trying to pay for your long-term care out of pocket.

Delay Retirement for as Long as Possible
Although you can retire and take Social Security at 62, it’s best to continue working until at least age 70 if you possibly can. The longer you delay retirement, the higher your Social Security benefits will be. Social security benefits increase significantly if you work until age 70, so you should make every effort to delay putting off retirement until you reach this age.

Cut Back on Unnecessary Expenses
Obviously, your assets will go a longer way if you spend less money each month. It’s important to review your spending monthly, if not more often, so that you can catch unnecessary spending and correct these problems. Consider cutting back on cable television, movie rental programs and other entertainment expenses so that you don’t spend money unnecessarily. You may also be able to save money by doing certain chores yourself instead of hiring somebody else to do them for you.

Katelyn Roberts is a SEO enthusiast who writes for NetQin, and is always trying to improve bloggers awareness.