People think that the main problem in heading towards retirement is money or rather, the lack of it. But what many don’t realize is that the amount of money they have now is simply a small part of the problem. The main reason why many people are not ready to face their retirement is because they did not save enough for it.
Why? Because many people are too heavily burdened with too much debt to be able to put aside enough money. So how does one start preparing for retirement?
Here are a few things most people can easily do:
1. Stop borrowing money. The first thing people in debt must do to get out of debt is to stop getting into more debt.
2. Put money aside. Always put aside a small percentage of your income – say about 10 percent- no matter what. Even if you still have some debts you need to pay off, start saving some money now.
3. Cut your budget wherever you can. It’s high time you re-examine how much money you’re spending on different things every month. Cut out things you don’t really need and try to limit what you need to spend on other areas.
4. Plan for emergencies. Start putting some money into an emergency fund. Many people go into debt because they did not plan for such things to happen. A six-month emergency fund should be sufficient.
5. Plan for expected expenses. If you think you might be needing a new car in about two years, start saving some money for it. Don’t plan on getting a loan to be able to pay for a set of new wheels.
It’s not easy at all to save for our retirement but it can be done with relatively manageable steps. That is, if you start working on it NOW!Retirement