Retirement Planning

Find out how to maximize and grow your earnings by retirement planning.

Many people have worked hard and ended up struggling in retirement. There are many reasons for it: no sense of financial planning, unwise spending ending up in huge debts, an extravagant lifestyle, or unforseen events such as losing your job or falling ill and needing to be hospitalized. Whatever the reason, you can ensure that all your hard work won't go to waste. Follow these ten steps in retirement planning to make the most, spend the least, and maximize saving for retirement.

Find out which careers are in demand and in what industry. Try to find work in that industry and don't be afraid to switch careers if you have to. You can study or train for another career while working in your present job.

Pay any debts that you have. Once you have found a well paying and stable job, begin to pay any debts you have. Avoid borrowing to pay your debts. Try to pay a little more than the minimum each month.

 Monitor your finances is a foundation of retirement planning. People in well paying jobs have a tendency to overspend and use their credit cards for purchases thinking that it will be easy to pay it in full every month. However, it almost always ends up in debt piling up. List all your earnings and expenses however small it is. Think of your priorities and budget accordingly. Review your records after six months to find areas where you can cut down and areas that you need to spend more on. Save or invest any excess income. Try to save at least 6 months salary in case you lose your job and have a separate account for major long term purchases such as a house or a car. If you have an unexpected windfall, save it or if you get a raise of a promotion, live on your previous income and save the rest.

Don't spend unnecessarily when you can save money. Avoid eating in restaurants. Instead learn how to cook and try out a new recipe every week to have something new to look forward to. Watch movies on video instead of going to the movies. Entertainment need not be expensive. There are many things you can do without spending money, like going on a picnic, playing sports in the park, even doing chores one day a week as a family.

Find out if you are paying too much fees on your bank accounts and credit cards. These have hidden fees sometimes that can be negotiated or avoided such as annual fees or maintaining balances. Compare rates of internet and mobile phone service providers, cable service, etc. and switch if you find a cheaper option. Saved fees can go towards saving for retirement.

Make sure you have insurance. Find out if your health insurance also offers a disability insurance that will pay you your monthly salary in case you are unable to work due to illness.

If you have worked out a budget stick to it no matter what. Don't make excuses or exceptions because when you do start doing this, you will always have an excuse in mind to spend.

Learn how to invest your money towards saving for retirement. Don't invest in high risk - high return type of investment especially if you don't really know much about investing. Conservative investing pays in the end and keeps you hard earned money safe.

Build a fund for your family vacations or entertainment so you don't feel like you're depriving yourself now in favor of retirement planning.

Teach you children the value of money at a young age. Show them how to earn it by earning a little for helping out with household chores or running errands. Let them know that happiness does not depend on money but on the quality of their lives.

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