You Are In Charge Of Your Retirement | Are You Guilty Of Sabotage?

How Would You Know If You Were Sabotaging Your Retirement?

Your financial decisions could severely damage your retirement plans.

The financial decisions you make in your 20’s, 30’s and 40’s can sabotage your efforts to successfully afford retirement someday.   You have the ultimate control over charting your course towards retirement.   Be careful with your financial decisions.

Debt Will Sabotage Your Retirement Plans

At the time you are accumulating debt, in your 20’s, 30’s and 40’s, you may not see it as a detriment to your retirement thirty years from now, but it is.  Debt gets in the way of saving.  How you choose to spend and save while you are working will determine if you can afford retirement or not.

Debt Brings Out Temptations

  • Overloaded and overwhelmed with too much debt, the temptation is to stop contributing to your retirement plans.
  • The temptation to convince yourself that it’s okay to keep on overspending since you are already in debt.
  • The temptation to declare bankruptcy is great – so you can just write it all off and start all over again.

Credit Card Debt|Wasted Money

  • Are you guilty of sabotaging your retirement

    Image by Getty Images via @daylife

    The money you waste on credit card interest and fees could be invested into your retirement plans.

  • Credit card debt also damages your credit scores; which in turn raises the prices you pay for all other goods and services that you buy.   The higher prices you pay is more wasted money…that again, could be invested into your retirement plans.

Other Debt That Block Growth

Mortgage debt, auto debt and college debt for your children all block the growth of your retirement plans since you are using investment money to pay down the debt.

Mortgage Debt|Find Investment Money

To find extra money to invest into your retirement plans, you want to pay down your mortgage as quickly as possible due to the interest expense.   Whenever you get a bonus, make an extra mortgage payment.

Auto Debt|Find Extra Money

When you finance your auto, you end up paying almost double for it due to the interest you pay on the loan.   This money could be used to pay-forward to your retirement.

College Debt|Find Extra Money

Sabotaging your retirement and kids' college fundRemember that your children know you love them; you do not have to prove it to them by funding their entire college education for them.   Your children can get loans to pay for their college education; you on the other hand cannot get a loan for your retirement. Your children have their entire working life to pay off college debt.  If you are in your 40’s you have a limited amount of time to save for your retirement; unless you plan on working forever. Do not sabotage your retirement due to guilty feelings about helping your children start out with little or no debt.

You’re In Your 30’s or 40’s Who Cares About Retirement|You Do!!

We all reach retirement age eventually.   Regardless of your current age, right now, today, some day you will reach an age where you want to stop working.  So the question is not whether or not you reach retirement age, because we all do; the question is if you will be financially ready when you do.