You might be surprised how quickly retirement can creep up on you. One day you are raising kids, going to baseball games, school functions, and taking care of everyone else. Then, it seems all of a sudden, you are left alone experiencing the 'empty nest syndrome'. Where in the world did the time go?
Life looks much different once you get the family raised and you prepare for your OWN future. One of the misunderstandings about retirement is that 'everything will fall into place when the time is right'. And, that is just not true! If you don't prepare, you may end up living a lifestyle you never expected...
5 Important HACKS to Think About
Long Before Retirement Arrives:
Tip # 1 - Always Pay Yourself First
That means when it is bill paying time, add yourself to the list of payees. And it does not need to be a lot, just get in the habit of including yourself. If everything else gets taken care of and you leave yourself out, it may come back to haunt you later. It's a habit that will pay off as the years pass by.
Tip # 2 - Avoid Using Credit Cards As Much As Possible
I know that some things work better when you can just use your credit card and not worry about having to always have cash on hand. However, it's just that mindset that the big credit card companies want you to have. They make it pretty easy for you to end up in debt and you don't even know how it happened.
Tip # 3 - Contribute To A Work Place Savings Account
If you are working and have a chance to contribute to a savings plan through work, it's usually a good idea to participate. Many employers will match a % of your contributions; make sure you take advantage of the matching %. That is free money for you. Later I will address some suggestions of other savings opportunities that may help you plan for your future retirement. #workplacesavings
Tip # 4 - Consider Making Extra Payments On Your Home Each Year.
When I was younger and I moved to a larger condo, my parents refinanced my first condo to help lower my interest rates (this was back in the 1980's and mortgage rates were through the roof. I used the property for rental property, generated some extra income while helping my parents each time I paid a payment to them. After a number of years, I sold the rental property, doubled the amount I paid for it, and within a few years, was able to pay off the condo I now live in. I have not had a mortgage payment for about 25 years. It is the best feeling in the world to not have a HOUSE PAYMENT! But it took some planning to get there.
TIP # 5 - Pay Attention To Insurance
This one drives me a little crazy, and I remember when I first started teaching school, and we sat through meetings every year about which policy is the best (of course depending on your personal situation.) Honestly, I had no clue what I should choose. I needed to learn about Medical Insurance, Life Insurance, Deductibles, In Network/Out of network, Dental and Vision, Short Term/Long Term Disability, and then LONG TERM CARE Insurance. I was 25 years old, what the heck is LONG TERM HEALTH CARE Insurance?
I didn't really understand anything about insurance until many years later. It wasn't until my parents were older and their Insurance needs became more apparent, did I begin to pay more attention to it. I understood Medical, sort of, but the rest just seemed like add ons that I wouldn't need to even think about until 'later'. My point is, once you begin to consider retiring, the insurance conundrum does not get any easier. Pay attention when you're younger and learn all you can, so when the time comes to make new choices, it won't be so overwhelming.
The tips above are just a fraction of good retirement planning. Taking the time now will be well worth your time and hopefully will help you make one of the biggest transitions in your life, a little easier. Look for more tips throughout my Blog. My intent is to provide value every step of the way.
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