retirement age could be both scary and exciting. You are glad to finally end
your work life and do whatever you want. At the same time, you worry that you
are not yet ready for that phase. Your life will drastically change since you
do not have a regular job anymore. The idea of not doing anything that could be
useful to the society is frightening.
It is even worse
when you realize that you are not yet ready to retire. You failed to save
enough money or you kept on spending the amount you reserved for retirement.
These are the reasons why you are financially unprepared to retire.
spending on your kids
You need to let your
children figure things out for themselves when they are already adults. You can
be there when they really have no other choice, but you cannot spoil them. When
you support their financial needs, you end up damaging yours. Do not reach the
point when you start dipping
into your retirement funds because your children need financial
You do not
take care of yourself
why you end up touching
your retirement funds is that you are not taking good care of your
health. You still eat foods that you are not allowed to eat, and not receive
enough sleep at night. Make sure that you gradually change your lifestyle since
you are no longer as physically fit as you used to be. If you want to reduce
your health-related expenses as you retire, you need to stay healthy.
Not following a budget
Make sure that
you always have a budget for your monthly expenses. Stick to the said amount no
matter what happens. When creating the budget, you need to set aside enough
money for your retirement before spending the rest on other expenses. It is
time to start declining invitations to eat out or shop with your friends since
you are not going to have a regular income source soon.
retirement investment plans
investment plan is not easy. When you are still young, you do not
see the point of preparing for retirement. Therefore, you keep ignoring this
plan up until you realize that you are not getting any younger. Start planning
your investments now and understand the rules. You can also consult with
experts to guide you.
loads of debt
You need to list
all your debts and try your best to pay them off as soon as possible. You can
also try debt consolidation where you gather all your debts under one umbrella
to avoid confusion. Your chosen bank or firm will be the one paying off all the
other loans incurred. As you inch closer to your retirement age, you need to be
free from debt. Otherwise, your pension and social security funds will end up
going to debt payment.
these mistakes, you will feel
more confident to retire soon.
and featured image from https://media.brstatic.com/2018/11/14145629/This-one-simple-trick-could-help-you-save-30-percent-more-in-retirement.jpg
image from https://www.usatoday.com/story/money/2019/05/16/retirement-why-people-are-retiring-earlier-than-planned/39453355/