Budget to Retire
Nobody wants to work in their seventies and yet most people only have ten to twenty thousand in their retirement fund at 50. How long could you live off of 20 thousand dollars? One year? Maybe two with social security but that is just no way to retire. You must save money now in order to enjoy your golden years.
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 efficiently you really need a goal in mind when you start. For a worry free retirement many people need to have about half a million dollars in the bank. Instead of randomly picking a large number like this you can be more accurate by creating a budget for your retirement years. Figure up how much you need for rent, bills and other expenses for each year. Then multiply that by 20 or 25 to come up with your savings goal.
After creating a savings goal you might feel it is hopeless. You can never save that much money. Well, with a good budget now you will be surprised how much money you really have. You can do simple things like cutting out coffee shop visits and trips to the drive thru. The average person can save several thousand a year by eliminating those two things alone. You can also become a bargain shopper and clip coupons to save extra money. By creating a strict budget for yourself now you will be able to enjoy life after work.
Once you know how much you need and how much you can afford to save you can try to make the two numbers add up by finding some safe investments for your money. A mutual fund or a high interest savings account will help your money multiply on its own. All of this budgeting and calculating can get pretty confusing. 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 .
With a bit of thought anyone can save for retirement. You just have to prioritize your life and your spending and you will find plenty of room in your budget to stash some money away for your future. Budget now and enjoy the future.
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 efficiently you really need a goal in mind when you start. For a worry free retirement many people need to have about half a million dollars in the bank. Instead of randomly picking a large number like this you can be more accurate by creating a budget for your retirement years. Figure up how much you need for rent, bills and other expenses for each year. Then multiply that by 20 or 25 to come up with your savings goal.
After creating a savings goal you might feel it is hopeless. You can never save that much money. Well, with a good budget now you will be surprised how much money you really have. You can do simple things like cutting out coffee shop visits and trips to the drive thru. The average person can save several thousand a year by eliminating those two things alone. You can also become a bargain shopper and clip coupons to save extra money. By creating a strict budget for yourself now you will be able to enjoy life after work.
Once you know how much you need and how much you can afford to save you can try to make the two numbers add up by finding some safe investments for your money. A mutual fund or a high interest savings account will help your money multiply on its own. All of this budgeting and calculating can get pretty confusing. 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 .
With a bit of thought anyone can save for retirement. You just have to prioritize your life and your spending and you will find plenty of room in your budget to stash some money away for your future. Budget now and enjoy the future.
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.
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10:37 AM
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