Case Study on Rick & Dee Dee, mid 50’s, married.   Annual Household Income: $90,000   Mortgage: $110,000  Credit Card Debt: $3,000  Monthly Household Expenses: $6,000. If you are in your mid 50’s like Rick and Dee Dee, you are in your final working years. During your final working years you need to focus on equity accumulation and debt reduction. To increase your financial stability for the future you have two choices, either earn more or spend less.

Earning more means asking for a raise or finding part time work. With a little tweaking, cutting expenses may actually be easier.

Your insurance premiums may be an expense you can trim down. Ask your insurance agent for a review of your home, auto and umbrella policies. Ask your agent for suggestions on how to lower your premiums: Are you carrying too much insurance on an older car for example? Are your coverages in line with other insured’s who have the same square footage of their home? Will increasing your deductibles lower the premiums?

Other ways to cut expenses may include cutting back on “extra’s”. Do you really need all of the extra cable channels or the extra cell phone features? Do you have memberships to places that you rarely visit, the gym for example? Be careful about over draft fees – avoid them by being more diligent on balancing your check book. Pay off your credit card balance every month – credit card interest rates are excessive.

Cutting expenses now, will smooth out your journey during your retirement years.