Mon, 2013-05-06 00:00
You’ve
heard the horror stories, and I bet you’ve even seen them for yourself.
I’m talking about the grandparents and their friends who struggle with
their bills and try to make ends meet during a time in their lives when
they should be happy.
You think to yourself
that it’s not the life you want to live. You want better. You want
more. But that means putting away money now for retirement to make sure
you have what you need for the basic necessities in life, for doctors’
visits, and even your travel plans.
The retirement years
are called the “golden” years, but very little about them can be
“golden” when it comes to money. Are you up for it? Here’s how to start:
Where can you cut back?
Cutbacks can be made
everywhere. Little tweaks in the things you do now can result in great
savings that you can put away for later.
How much do you spend on food?
• Are you buying in high-end stores? Some of the bulk and off brand stores carry the same quality as the large chain stores.
• Are you buying brand names where they’re not necessary? (We all know not all cream cheeses are created equal, though.)
• Are you utilising
coupons? Are you using everything you have in your pantry before buying
more? Do you eat out often or in expensive restaurants?
Analyse your food
budget to see where you are spending more than you need to. To
realistically make this work, you don’t want to rid yourself of every
luxury that you have now. You’ll only end up resenting taking this on.
So, set yourself a realistic goals and follow through with them.
What about your home?
Is your home bigger than you really need? Does it require a lot of upkeep? Is it energy-efficient?
When you get older,
you’ll downsize in order to be able to maintain your home on your
budget. If you do that now, you will take a man-size bite out of your
home and home maintenance bills. Of course, this means to live with what
you can live with. Not many families NEED a mansion. Consider a smaller
house by trimming the extras and making do with only what you need.
Get rid of your debt now.
Do everything to get your debts paid off as soon as possible. This will be the greatest asset that you create for yourself.
One of the best ways
to pay off debt is by using the snowball method. Here’s a brief
explanation of how it would work with your credit cards:
• Decide to pay one card (either the high interest or the the lowest balance) off while making minimum payments on the others.
• When that card is
paid off, add the payment you were making to it to the next card you
want to pay off and continue to pay the minimum on the rest.
• Repeat until you have all you cards paid off.
The benefits package
Benefits of living
this lifestyle stretch far beyond the cushioning of your actual nest
egg, as you will set a great example for your children too.
Your kids will learn:
• To budget money better for their families later
• Self-control when it comes to purchases
• Not to live beyond their means, sparing them the stress of credit cards and being in debt later
The key to making
this lifestyle work with children is your attitude. Present the way you
live to them in positive light and don’t begrudge them when it counts.
Your attitude towards them and the way you live can greatly impact their
perception of these sacrifices and can really make a difference when it
comes to money management for their families.
Imagine that you could actually teach them not to follow the crowd and enjoy living within their means. Just imagine.
Many people spend
their golden years worrying about their money. Spare yourself that
headache and live on less now. Use that extra money to actually make
retirement your “golden” years.
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