Financial Prudence Will Prevent Retirement Misery

People don’t enjoy making sacrifices. If they work hard they feel they have the right to play hard. It is a matter of striking a balance. Some enjoy the trappings of their money and want others to see how successful they are. That may be in the form of a large house, regular new car and fashionable clothes. Exotic holiday are fun but they can also engender envy amongst friends and secretly that can become part of the pleasure in taking them. It is clear that in the USA people live quite comfortably with debt yet little research has been done over a long period to see whether those happy with their level of debt were still happy when retirement came. It is likely that it will not have been as comfortable as they would have liked.

Common Sense

It is possible to save while spending sufficient to enjoy the good things in life. If you become used to the good things in life then there could be a shock in retirement. Certainly building up credit card debt that seems to be so widespread in the Country is not clever. Month end balances incur a high rate of interest, far higher than personal loans for example. The first thing that anyone should do is to stop using their cards for anything other than convenience. If you have a regular income you should get a consolidation loan to get rid of expensive debt. As long as you then exercise self-discipline not to build up balances again, you are on the right track.

Once you are in control of your expenditure you have a chance to save. There is no chance of early retirement unless you are in control and spend wisely. The Social Security System allows people to draw benefit at 62. Some draw out of desperation with benefits nowhere near the level they would be by waiting even as long as 8 more years. Some who retire at 62 do so because of how well they have handled their financial affairs and they are likely to resist drawing their benefits then because there is guaranteed growth for eight more years.

Control With Online Loans

Everyone should be in control. They should look at their income and expenditure in two columns and think about the way ahead. If they are already on the right lines then it is just a matter of continuing. If they have expensive debt then a no credit check loan can solve that. It should be done as a matter of urgency. After that a few lessons should be taken on board.

In terms of expenditure, if finance is tight then perhaps social spending should be examined? Is it necessary to eat out so frequently for example when you can eat well at home inviting friends into an equally pleasant environment as any restaurant? Likewise there are plenty of leisure time activities that cost nothing. A walk in the park enjoying the environment and fresh air is something even the poorest of people can do. You can get all the exercise you need for free without paying a monthly membership subscription to a health and fitness club. There are other areas where savings can usually be made. Utilities, insurance and telephone charges are all worth examining. There are comparison websites that will do a good deal of the research for you. As the savings build up the money should actually be saved rather than earmarked on spending elsewhere.

If the money is earmarked for retirement, then a 401K is a minimum that you need. Investment in the S&P 500 should also ensure growth at a reasonable level, below double figures but still fairly good. Saving is only possible if you are in control. It is stressful to live with financial worries and stress is not good for anyone’s health. Just think about your health in later years if you have not planned for your needs. You can live well without living beyond your means if you are sensible. One thing is certain. Your means will rapidly reduce in your later years if you fail to act responsibly while you are in full time employment. The word ‘sacrifice’ doesn’t come into it.