Too many people live in the day and forget about the cost associated with tomorrow. A study was recently conducted by The Federal Reserve. It shows that 31 percent of individuals who have yet to retire have no type of retirement savings at all. That is a pretty scary statistic when you consider that Social Security offers very little to live on. Here are four tips on how you can be ready for retirement:
If you can just put 10 percent of your income into a savings account each month, then you will have a nice nest egg for retirement. Instead of going to that gourmet coffee shop each morning, why not make your coffee from home. If you just put $2.00 a day from your coffee habit into a savings account, then you would have $60 a month, $720 a year and a total of $3,600 in five years. Keep in mind this is just one way to save, there are much more.
Pay Off Debt
If you know retirement is coming, then you need to start paying off debt. If you only pay the minimum monthly payments on your credit cards, then it will take you forever to get them paid off. Instead, work on one bill at a time and put all your extra money towards that debt. Once it is paid off, work on another bill to pay it off too. The less debt you have going into retirement, the better off you will be.
Get Up To Date on Social Security
It is important to find out how much money you will get each month from Social Security. The amount will be significantly smaller than what you are accustomed to living from. However, you need to know what will be coming in so that you can know how much you need to save. If you have a disabling condition, Social Security Disability will allow you to quit work sooner and get more money. Because it is difficult to secure a Social Security Disability check each month, it is important to get help from a legal professional. Our lawyers will help you get compensation or it is advisable to consult an attorney in your area.
Invest in a Life Insurance Policy
Having a life insurance policy is essential. Whole life policies accrue cash that can be borrowed against in the case of financial need. Having that security is vital in the retirement years.
Preparing for retirement is no easy task. It requires saving and preparations from earlier ages in life. There is never a better time to start saving than today. You will be glad for every last penny you skimped and saved when you reach the golden years. It takes discipline and hard work to save, but once you master the art your retirement will be well funded.