Top 5 Tips to Ensure Financial Security After Retirement
By Angela Sanders Tuesday, April 15 2014 @ 06:26 AM EDT
In today’s financial turmoil, we all have become financial worrywarts. We always worry about our financial security, especially after retirement. Unfortunately, we worry a lot, but hardly do anything for the betterment of our personal finance. We often live beyond our capacity and hide this to our financial advisors.
Most of us are losing good night sleep because of the fear that we will be running out of money much before the life does. Some get financial advice from family or friends, but that barely makes any difference in their spending habit. Rather it would be better if one consults a financial advisor and discusses on ins and outs of her financial status. However, it can be fruitful only if the respective individual listens to her advisor.
No matter even if you don’t consult a financial expert or get suggestion from your acquaintances. You can still manage your finance quite efficiently by your own. All you need to stop thinking about how much you spend and worrying; think about how much you have saved so far and how much you should save to ensure tension-free retirement life.
Here are some easy tips that you can surely consider for securing yourself monetarily and thus financial freedom.
- Start saving now – Many people wait too long for getting their finance house in shape. Don’t belong to that group. Start putting your savings on autopilot, stop using credit card and use cash for your daily expenses. It is evident that people spend less while handing over hard cash than using credit cards.
- Create a financial plan – Create your own plan instead of depending solely on a financial advisor. You can get help from different financial websites. You can save up to 15% of your income through a 401(k) plan. Don’t be late in taking advantage of the power of compound interests over years. But if this is not available for you, try Roth IRA, IRA CD or conventional IRA as your retirement savings instrument. Discover bank offers competitive CD rates, you can opt for them. Set up automated contributions so that you don’t miss to deposit money regularly. You can also opt for a self-directed IRA that offers the same advantages of a conventional IRA. However, with the former you can direct your money in a wide array of assets.
- Pay off existing debts – Perhaps the most important step towards your financial security is to getting rid of any outstanding debt. You must pay off your debts in time, especially if it an expensive credit card debt.
- Calculate your profit and loss – You will find a number of online retirement calculators. Use any to check whether or not you’re on the right track to reach your financial goals.
- Spend less – We belong to a society that tends to spend more than what is required. So it is always advised that you heed to your spending habit. Try to be as frugal as you can because unless you can start living within your means, you can never spend a financially secured life hereafter.
Discussed above are probably the most important and inevitable steps that could lead you to meet your pecuniary goal and ensure healthy personal finance throughout your life.