In your early thirties you may not put stock in your retirement. However, it’s exactly at this young age that planning for your retirement can result in achieving personal wealth. Listed below are several tips for remaining financially stable in your golden years.
A Second Career
Many people take on part-time work in areas of interest alongside working full time for an employer. Part-time jobs that pay well include real estate investing, personal instructors, tutors, accountants, physical and massage therapists, and freelance writers. Any one of them will provide additional income that you can use to supplement your retirement. If you choose to flip homes, companies like Lantman lending hard money lenders can help secure the necessary funds.
Become Debt Free
The word debt-free may seem unrealistic, especially if you currently owe out tens of thousands of dollars to multiple sources. Thankfully, living debt-free is something you can achieve. Making changes in your lifestyle, like using cash instead of credit, refraining from frivolous spending, and shopping smart, will all help you reduce debt now and in the future. Creating and using a household budget will make you aware of poor spending habits, allowing you to change them.
Buying and using only what you need helps reduce waste and costs. It’s a concept that those who practice green living adopt. Replacing traditional light bulbs with long-lasting LEDs, taking shorter showers, turning off lights when not needed, and hang drying laundry, will all help to reduce your carbon footprint and lower home costs. Installing solar panels and replacing a gasoline-powered vehicle with a hybrid or completely electric car will further enhance your results. If the latter is not an option, taking public transportation or riding a bike instead of driving your vehicle will offer similar results.
Maintain a High Credit Score
Having an excellent credit score will allow you to obtain the lowest interest rates on a mortgage, auto loan, and credit cards. A high credit score also eliminates security deposits for utilities, improves your buying power, and makes it easy to borrow money when needed. Finding the best rates on cell phones and auto insurance, and maybe even a better job, are a few other advantages to maintaining a good credit score.
Many companies offer participation in a 401k after a period of 90 days. Most of these same employers match your investment up to 3%, doubling your contribution. If you work less than 40 hours or your employer doesn’t provide these benefits, you can take out a personal 401k or a Roth IRA. Both will help you build wealth in your golden years for a small weekly deposit.
Maintain Your Home
If you currently own a home, there’s no guarantee that you will make money selling it when you retire. However, while this is true, and the market helps determine the outcome, maintaining the home will offer a better chance at a profit. Repairing the roof and plumbing, updating appliances, having a pest inspection, and replacing older doors and windows are a few examples that can improve the value of your home.
A Financial Planner
A financial planner isn’t only for the wealthy. Anyone who works full-time and wants to retire in comfort should have someone to help them with investments and savings. Advisors know through experience and training what works for different circumstances. They take into account your annual earnings and advise on spending and the best ways to establish savings.
Save Where Possible
Shopping after the holidays, moving mid-week, and using coupons when available are a few ways to save money on the things you need daily. Canceling cable television, switching to Hulu or Netflix, and bundling services like insurance, offer more ways to stretch your money.
Now, while you’re young, is the perfect time to start planning for your retirement. With roughly 30 years in front of you, you can make meaningful choices that provide financial wealth in your golden years.