Budget Now for Your Retirement
Is there enough money accumulating in your 401k to actually retire? For many the answer is no and they will not discover the truth until the money runs out and they are back at work at seventy years old. Protect your retirement by saving money now. With help from a detailed budget you will be on your way to an easy retirement.
When do you plan on retiring? Most people want to retire by 65. That means that your retirement fund will need to last you 20 to 25 years. That is a long period of time to save for so it takes real work to calculate how much you will need and how to get that much money.
In order to save money efficiently for retirement you need to have a goal amount that you want to see in the bank. You can calculate how much it will cost you to live each year of your retirement. Figure up you mortgage or rent, monthly bills, food costs, car insurance, clothing budget, travel budget, ect. Once you have a figure for a year's worth of living expenses multiply that by 20 or 25 to come up with a savings goal.
You may feel a bit overwhelmed by the amount of money you need to save. Before you lose hope check your 401K and find out how much you already have. Now determine how much you can afford to save each month. This means you need to make a budget for your life now. Cut down on your expenses by eating at home and cutting coupons. You might even think about getting a second part time job to give your savings a jump start and make up for lost time.
If the amount you need to save and the amount you can afford to save don't quite add up you can invest your savings to create a little extra income. Choose safe investments like CDs or high interest savings accounts. If you need help with this or other financial issues you can use an online financial calculator. There are many to choose from that are easy to use at www.personalfinanceissues.com.
We all want to enjoy our golden years. You may think it seems like you have plenty of time to save but it will serve you well to spread out your savings over 20 or 30 years. This way you will be sure to have the money to retire when the time comes.
When do you plan on retiring? Most people want to retire by 65. That means that your retirement fund will need to last you 20 to 25 years. That is a long period of time to save for so it takes real work to calculate how much you will need and how to get that much money.
In order to save money efficiently for retirement you need to have a goal amount that you want to see in the bank. You can calculate how much it will cost you to live each year of your retirement. Figure up you mortgage or rent, monthly bills, food costs, car insurance, clothing budget, travel budget, ect. Once you have a figure for a year's worth of living expenses multiply that by 20 or 25 to come up with a savings goal.
You may feel a bit overwhelmed by the amount of money you need to save. Before you lose hope check your 401K and find out how much you already have. Now determine how much you can afford to save each month. This means you need to make a budget for your life now. Cut down on your expenses by eating at home and cutting coupons. You might even think about getting a second part time job to give your savings a jump start and make up for lost time.
If the amount you need to save and the amount you can afford to save don't quite add up you can invest your savings to create a little extra income. Choose safe investments like CDs or high interest savings accounts. If you need help with this or other financial issues you can use an online financial calculator. There are many to choose from that are easy to use at www.personalfinanceissues.com.
We all want to enjoy our golden years. You may think it seems like you have plenty of time to save but it will serve you well to spread out your savings over 20 or 30 years. This way you will be sure to have the money to retire when the time comes.
About the Author:
Basdeo Paul is a skilled webmaster and owner of the website http://personalfinanceissues.com . He offers a list of 35 online financial calculators which helps to control and resolve the financial issues like credit card payoff, savings, mortgage, etc.
posted by Credit Counseling at
11:10 AM
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