Tag Archives: Finance

6 Wise Money Moves for Those Who Don’t Plan to Retire

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Do you see yourself as someone who won’t ever retire? You probably know some people who have already retired, but you can’t imagine that you’d ever stop working. 

As retirement age gets closer, do you identify your own thoughts about retirement in these statements?

1. “I’m never going to retire. I can’t afford it.” If you think this way, you likely haven’t saved much for retirement. Such thoughts could become a self-fulfilling prophecy and you might end up working until your health fails or you’re forced into retirement.

* Either way, you’re financially unprepared for the fact that you’ll eventually retire.

2. “I love my job and I want to work forever.” Although it’s wonderful that you enjoy your work, that love will not stop the aging process. As years pass, the way you think will eventually change, as could your health, work situation, and environment.

3. “My dad worked all his life and died on the job and so will I.” You believe you’re a helpless pawn of fate and won’t retire due to expecting an untimely death.

* However, if you live longer than your parents (and according to statistics, you will), you may find yourself in a position to retire someday. The real question is, “Will you be financially ready?”

4. “I don’t think about retiring. I guess things will turn out the way they’re supposed to.” This reaction is like sticking your head into the sand and ignoring one of life’s realities: if you’re lucky enough to live long enough, you’ll eventually retire.

What to Do Now to Prepare for Your Financial Future

By now, maybe you’re considering that you’ll actually retire. What can you do immediately to begin establishing a bright financial future during retirement?

Talk with your partner about the kind of life you’d want if you stopped working. Make some plans that make such a life possible for you.

Ponder these tips:

1. Accept reality. You’ll likely retire at some point. Think about your current finances and how you’d live if for some reason unknown to you today, you had to stop working tomorrow.

2. Start saving this week. Aim for putting back 15% of your salary. Look at it this way: it can only help you to have some extra money in the bank.

3. Establish a retirement account. Talk with your tax accountant about the best type of retirement account for your situation: Individual Retirement Account (IRA), Roth IRA, or a 401 (k), for example.

4. Develop passive income resources. How can you get started now to establish a new source of passive income and keep it going?

5. Focus on building assets. Maintain your home at the highest level. This way, if you decide to sell, your house will be in tip-top shape. Begin some short-term investments (five years or less) and regularly place some dollars there.

6. Reduce outgoing expenditures. Take a look at the amount of money you have going out in an average month. Look for ways to cut spending and follow through with instituting those cuts.

Regardless of your reasons for feeling you won’t ever retire, start planning for a time when due to health, age, or level of physical energy, you’ll at least slow down working. Put these strategies to work, even if you don’t plan to retire. You’ll be glad you did.

 

11 Tips to Create a Bright Financial Future

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Regardless of the type of work you do, it’s possible to take action now to start creating a bright financial future for you and your family. When you start now, then things like a raise or better-paying job will become the icing on the tasty cake you’ve already made, and add to your pleasure, rather than having to bail you out of a financial jam.

Try these strategies to ensure your financial outlook is bright:

1. Save at least 15% of your paycheck. This amount will give you something to fall back on when times are especially lean or funds to invest so your money can be working for you.

* For example, if you clear $500 a week, ensure you put back at least $75 dollars for your future. 

2. Find a stock broker you trust. As you save your dollars, it’s wise to have an overall investment plan to earn the most interest over the long haul. However, look at the facts and listen to your gut when it comes to making the final decision on making a particular investment.

3. Have just one major credit card and use it sparingly. Charging a small amount on it each month and paying that amount back before the end of the month builds your credit and keeps you out of debt at the same time.

* Keep the major part of your credit allowance open for emergencies.

4. Vow to never pay finance charges again. Of course, you’ll likely be paying a mortgage and perhaps a car loan that include finance charges you may be unable to avoid. However, outside of those two payments, paying finance charges is like setting fire to your dollar bills. Take steps to insure you pay as few finance fees as possible.

5. Pay all your bills on time. There are a few good reasons to do so:

* You build a positive credit record.
* You keep money in your pocket instead of wasting it on late fees.
* You build confidence that you can manage your money responsibly.

6. Find a competent tax preparer and accept his financial advice. A great tax accountant will tell you how you can pay fewer taxes and how to rack up some helpful deductions. He may even offer helpful guidance about how much money to put into your Individual Retirement Account (IRA), Roth IRA, or a 401(k).

7. Set limits with your kids about money. Teach them from the time they’re young that they must earn their own money and save at least 25% of it. They’ll gain an understanding of money management that will serve them well the rest of their lives.

8. Apply $500 to $1,000 yearly extra toward your mortgage principal. If you prefer, pay an additional mortgage payment each year. It will save you thousands in interest. Plus, you’ll pay your home off years earlier, freeing up your funds for whatever you want.

9. Keep your resume up to date. You never know when you’ll want to apply for a promotion, change careers, or develop side projects for extra streams of income.

10. Consistently accept part-time, short-term, or temporary second jobs. Bringing in extra money occasionally in addition to your full-time work pads your bottom line.

11. Hone your computer skills. Those who know their way around a computer are more likely to be successful at work. Broaden your horizons even further by learning about new software in your industry.

Put the above strategies to work to strengthen your money situation. Care for your finances and nurture your financial situation today and every day. When you do, you’ll live the incredible life you’ve always wanted!