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Golden Years: Financing Tips for the Later Decades

Date : Apr 05,2014
By : Brooke Chaplan

Whether you are just out of college, or well into the middle-aged bracket, retirement can still seem so far away. However, it is never too early to start planning for your retirement. Saving will be so much easier if you start savings process decades before you ever need to use the retirement funds. You can enjoy a successful retirement by planning in advance and making wise financial decisions that will benefit your future.

Just Start Saving

Researching retirement is helpful, but there is no substitute for action. Regardless of your current financial situation, it is important to start saving now for retirement. Even if you can only save $20 per month now, starting early lets you take advantage of the power of compound interest over a long period of time.

Take Advantage of Tax Breaks

Instead of dumping your money into a savings account, take advantage of the tax breaks provided by retirement accounts. If you are working, your employer likely offers some type of retirement savings account, such as a 401(k). You can contribute to these accounts with pre-tax dollars, and some employers even offer a matching bonus, which equals free money for your retirement.

Stick to Your Budget

If you are living paycheck to paycheck, you likely do not have any extra funds to put into your retirement accounts. You can remedy this situation by setting a budget and sticking to it. Make sure to include a category in your budget for retirement savings. Some people are intimidated by the thought of creating a budget. However, a realistic budget can actually provide financial freedom. When you know how much money you can afford to spend in each category, you no longer have to feel guilty about spending it.

Consider Side Jobs

If creating a budget allows you to see that you do not have any extra funds, you have an income problem, and not just a spending problem. This does not necessarily mean that you have to quit your job and find a new one. Even just a few hundred dollars extra a month can make a huge difference, so consider taking on a side job to increase your income. The possibilities for additional employment are endless. Perhaps you can work one or two shifts each weekend as a server at the local assisted living community, or babysit for your neighbors every Saturday night. Find a job that fits with your skills and interests, and use the extra money to pad your retirement savings account.

By planning ahead, you can enjoy your golden years without having to constantly worry about finances. Wise decisions today equal financial stability in the future.