Good Retirement and Financial Planning Ideas
Let’s admit it. Retirement and financial planning is usually on the to-do list, but it falls way at the bottom and gets overlooked. It is a common thing that happens to the busy family of today. We plan to plan. And then we just don’t.
It is important to make the leap to getting started, though. Don’t let time pass you by until it is too late and you are wondering what to do. Takes these tips for retirement and financial planning and use them today!
Be Realistic About Retirement
Many people don’t realize how much money they are going to need to save for retirement. Here is a simple way to sum it up and plan what you will need so that you can add that to your finances. Take the amount of money you are living on now per year and subtract the amount of money you will save after the kids move out, you downsize to a smaller home, and car. Now, multiply this number by how many years you think you will need the retirement savings. For example, if you plan on retiring at 60 and the average life expectancy for a human is around age 80, then you will need to multiply your yearly amount by 20.
Make a Budget
Before you roll your eyes, try it. A budget really does help with retirement and financial planning needs, no fancy spreadsheet required. On a sheet of paper write down all of your monthly expenses, including your utilities, credit cards, eating out, groceries, and snacks. Make sure you also add a certain amount for retirement. Next, subtract this amount from your take –home income. Do you have anything left over? If you do, then it is important to plan to save this amount in an account separate from your retirement savings. This savings is good for a rainy day account.
Now that you have a budget and can see what you are spending, it is a good time to see what you can cut back on so that you can put that money toward your retirement and financial planning. Cutting back doesn’t mean that you have to give up things that you enjoy. Just enjoy them a little differently. For example, if you love a latte in the morning try making your own from mixes you can buy in your local grocery store. You get the same treat for a smaller price.