Posts Tagged ‘retirement’

How Do I Plan For Retirement?

Sunday, April 5th, 2009

One of the most common questions people have is how do I plan for retirement? Whether you’re looking at retiring in five years or thirty five, it is important to come up with a plan that will provide you with more than enough to live comfortably. It is no longer sufficient to rely on social security to make ends meet once you are no longer working and it’s time to get proactive about securing your future. Here are some answers to the question, how do I plan for retirement?

Plan for your nest egg.

1. How do I plan for retirement in five years?

If you have nothing saved away at this point, planning for retirement is not going to be an easy task but it can be done. Depending on your financial situation and the amount of your paycheck, this is the time to start thinking about putting a significant portion of your earnings into savings. Although many are tempted to get into a high risk situation in order to make more money quickly, this is usually a bad scenario.

When you need to plan for retirement quickly, the best option is to speak with a financial adviser that can assist you in developing a portfolio of investments that will begin returning right away, as well as in the future. This is the safest means of getting your finances in order in a short period of time.

2. How do I plan for retirement in fifteen years?

This gives you a little more leeway, but it doesn’t mean that you should put off saving money and setting up alternative income streams right now. With fifteen years before retirement, you’ll need to take a hard look at how much you can save each year and whether or not it is possible to increase that amount, either through getting paid more money at your current job, or finding news ways to make more income.

At this stage, investment properties and stocks that have a solid history of returns are an excellent idea for many people. However, you should consult with a financial adviser to get a better idea of where you stand and how much time you have to start putting money aside. They can help you develop goals and stick to a plan to make sure your retirement will be worry free.

3. How do I plan for retirement in twenty five years?

At this point in many people’s lives, retirement is far enough away that it isn’t a real worry. However, this is the ideal time, or even before this point, to start saving money seriously and developing a long term plan to secure your financial future. Keep in mind that the cost of living will go up each year, and that your money today may not be worth the same amount in twenty five years.

This period of time should be spent developing a solid portfolio, multiple streams of income and a reliable savings plan that will help you get prepared for any eventuality.

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Originally posted 2020-12-05 05:02:33. Republished by Old Post Promoter

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Breaking Down Budgeting

Friday, April 3rd, 2009

A personal budget is simply a spending plan. Before you work on personal budget planning you need to have a good idea of where and how your money is being spent. It can be a tedious process, but it can also be a true eye opener if you are not already well aware of how and where you are spending your income. Many people tend to spend their money with no real idea of where it is going. The first step to making a budget that you can live with is to come up with an accurate and easy to follow system for accounting for your expenses.

Track your spending! One simple and inexpensive method for tracking your spending is to purchase a small notebook from a grocery store. Keep this notebook with you at all times, and every time you spend money, write it down. You need to be able to keep track of ATM withdrawals, debit transactions and credit card expenses. You may also consider using a simple spreadsheet software program or a paper system in order to record and track your expenses from day to day.

Budgeting doesn't mean hoarding your pennies.

Create a budget! Having a budget does not mean that you have to squirrel away every penny, doing without important things that you need in your life. What it does mean however is that you are making sure that your most basic needs are being taken care of first and foremost, and that you are keeping yourself aware of how much money you have for splurging purposes. After you track your expenses, the next step is personal budget planning. Here are some things that will better simplify the personal budget planning process.

Income –

Make sure to include all sources of income and revenue, including gross income paychecks, child support, alimony, bonus checks, government checks, investments, retirement and personal business income as well.

Recurring Expenses –

Here are some of the usual monthly recurring expenses that you may find yourself dealing with. Along with your record of spending, this list will help to make sure that you are remembering everything that you need to account for: Food, home insurance, childcare, health insurance, gas, automobile insurance, electric, cell phone, home phone, internet access, cable, satellite television, water and sewer, prescriptions, dining out, garbage service, school lunches, entertainment, work lunches and charitable giving as well. You are also going to want to include monthly savings account goals, dining out, movies and other activities that you will spend money on regularly.

Variable Expenses –

This is a list of expenses that come regularly but not on a monthly basis. Some examples are spending for holidays like Christmas, Thanks giving, birthdays, personal care, income and property taxes, household repairs, prescriptions, doctor visits, clothing, shoes, school tuition, book costs, school supplies, school expenses, home equity, mortgage expenses and automobile expenses.

Unsecured Debts –

Here you should make sure to track any credit card debt, loans, school loans and other types of unsecured debt that needs to be paid off.

In order to put together all of these personal budget planning elements, you need to track your income and expenses on a month by month basis. Take the net amount you earn from each income source and figure out how much is earned in a year following this plan, then divide by twelve for a monthly average. Do the same with your expenses to come up with an average monthly amount. This is the best way to budget. It may not be exact, but it does allow you to more effectively and efficiently plan both for incomes and expenditures.

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Originally posted 2020-12-03 05:02:26. Republished by Old Post Promoter

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Personal Budget Planning

Monday, January 5th, 2009

Add budgeting to your personal finance repertoire.

The key to your financial success in life is your own personal money management skills. Your personal money management practices make up your own personal method of reaching both your goals and your dreams. No one likes the idea of personal budget planning, but you will never know if you are getting the most out of your money if you do not implement some techniques for personal budget planning into your life. Everyone wants to keep up on their bills, pay off loans and credit cards, and stay ahead of debt. Successful asset and debt management is an excellent source of pride as well as good credit.

Whether we use credit or not, all of us want to have a good credit score and credit report. So unless you have an unlimited amount of money that you can simply spend in any way that you wish, you are going to need to formulate some semblance of a personal budget in order to get your bills paid and in order to manage your assets as well. Personal budget planning can seem difficult, but should not be an overwhelming process by any means.

Creating a household budget begins by figuring out what all of your monthly and yearly bills are. Then you are going to want to add in any retirement funding, savings goals and spending money so that you have a clear cut picture of how much you need to spend, because what doesn’t matter is how much money you make – what does matter is how you spend the money that you make. By implementing personal budget planning techniques into your daily life, you can get a feel for how what you make relates to what you spend, and how cutting down expenditures in certain areas of your life can actually help you save a significant amount of money.

When you fail to follow personal budget planning, your debt may overcome your income, meaning that you would be unable to make payments on time. If you make payments late or make no payments at all, you will put yourself in serious mounting debt with no way out. You cannot simply spend money as you wish and hope that there is enough left over at the end of the month with which to tackle the bills. You absolutely must implement techniques for personal budget planning if you want to manage your finances right.
Personal budget planning is actually quite easy when you consider how many resources are out there for it. Most people use budgeting software on their computers to prepare a household budget. If you do not have any fancy software, another opportunity is simply to use excel to track money in and money out. When you have a clear cut picture of where your money is going, that is when you can truly begin to implement smart money saving strategies to get your finances on track.

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