Finding The Best Financial Position
In turbulent economic times you never know if you will be forced into early retirement.
If you are financially prepared, you may not mind. If you are living from paycheck to paycheck, and not financially prepared, you could fact financial ruin.
Is Anyone Safe From Forced Retirement?
If you think forced early retirement cannot happen to you; think again, everyone who works for someone else is at risk. Your employer may be looking to downsize and based on the number of years you have worked at the company, regardless of your financial situation, you are forced to retire. Or what if your employer goes out business due to the economy and you cannot find work. Can you afford to not be prepared?
Expenses Continue|Be Ready
If you are ever forced to stop working, unfortunately, your expenses do not stop also. What would you do if you are forced to retire but are not financially ready? If you have never thought about it, you may want to start.
If you are a procrastinator and have been putting retirement planning on hold because you have more important financial matters to worry about, you may want to change your strategy. A better approach would be to take the time and make the effort to put yourself into the best possible financial position.
Be Prepared For Anything
#1 – Make Your List
Make a list of every single one of your current expenses so that you have a base to work from. You only have so much money, where can you cut back?
Mortgage or rent payment
Homeowners association fees
Real Estate taxes
Insurance, home, renters, auto, umbrella
Health insurance, life insurance, long-term care insurance
Utilities (water, gas, electric)
Cell phones, cable tv, internet
Doctor visits, medications
Entertainment, vacations, hobbies
#2 – Make Your Budget
You can help yourself cut down on your spending by creating a budget. If an item is not on the budget, it does not get purchased.
#3 – Zero Debt Zone
Work on paying down your debt to zero. The best financial position to be in is to be debt free. When you are debt free, you can handle any financial situation.
#4 – Stop It With Stuff
Make a commitment to yourself to work on trimming down your future expenses. Stop accumulating stuff. Only buy what you need, stop buying things you want but do not need. A budget helps trim down expenses.
#5 – Plug Into A Retirement Calculator
You may be financially set, but to confirm, find a retirement calculator that you are comfortable with and run your numbers. You know your target retirement date, financial goals and risk tolerance. A retirement calculator will take those factors and give you a good indicator if you are financially sound or need some work.