It can be kind of difficult thinking about retirement when you’re busy working hard. It is much better to contribute to your retirement fund and end up financially comfortable than to retire poor. Here are some ways to ensure your finances will be set and you can really enjoy the hard work you’ve put in over the years.
Don’t over spend
It is important to live within your means. Spending too much on things you can really go without is what will prevent you from investing your money into retirement. If you need help creating a budget plan, click here.
According to MSN Money, 10 to 15 percent of your income should be contributed to your retirement account. If you don’t save some money, you will end up with not enough to survive off of when you stop working.
Make saving a priority
If you need to find places where you can save money, check here. If you are in the market for new car, determine if you could purchase a used car or opt for public transportation instead.
Save in the right accounts
Savings accounts are not usually the best alternative. Opt for an IRA or an account that has tax benefits and will gain interest. If your company offers a 401k match, try to contribute the maximum amount they match. That can always be transferred to an IRA.
NO payment plans
Try very hard to avoid financing your purchases. If you can make a purchase with cash—do so! If you need to buy furniture, try paying it off before the interest accrues. Just make sure you keep an eye on buying on credit.
Track your credit score
In the event you do have to finance something, make sure it is a must-have, like a house or car. Having a good credit history of timely payments is needed so you can eventually get low interest rates. No matter what, keep an eye on your credit score to ensure no mistakes have been made. If you need help trying to correct a mistake or raise your credit score, check here.
Invest, Invest, Invest!
Invest in some stock. But before you do so, seek financial counsel to determine whether you can take some risks with your money.
Most people don’t want to retire rich, most just want to make sure they have the same or a little more money coming in as they had when they were working. So, be smart and save away!