Personal finance tips for retirement planning are no different from any other tips on personal finance goals. However, there might be a shift in urgency!
On this Web site we discuss many issues around retirement planning. We also report the latest average retirement income statistics published. If you visit that page you'll understand what I mean by a shift in urgency.
My tips for your personal finance might not be what you want to hear. But this is reality. The sooner you implement these tips the sooner you'll be able to eliminate uncertainty as far as your retirement planning is concerned.
Often you can't increase your income, but you can always cut or moderate your spending. It might sound impossible to you now, but it can be done. I know. My wife and I did it when we realized that our retirement provision was inadequate. We switched to a minimalistic lifestyle while still living moderately well. The gain in savings was spectacular.
Get rid of all your debt!
Debt is very expensive money. You've got to repay debt with income that has already been reduced by tax. The repayment is at a premium because of interest on your debt. When you apply what you've saved when you stopped consuming to your most expensive debt you make spectacular although invisible gains as far as your net worth is concerned.
Budget and stick to your budget!
This includes the tracking of your spending and the possible banning of credit cards. Visit our discussions around the issues of budgeting by clicking here.
Tax advantaged retirement provision!
Make sure you participate fully in the tax advantaged retirement plans available to you. These plans grow exponentially. Your contribution is not taxed in your hands. Your employer's contribution is also not taxed – effectively free money for your benefit. The regular contributions enjoys the advantages of cost averaging which gives to you accelerated growth income. And the best of all: The income earned is not taxed either.
Save as much as you can of your taxed income in a retirement fund or a retirement annuity. Use the retirement planner that we recommend to determine how much you should save to retire comfortably.
If you're lucky enough to have some funds left over, treat yourself! With your new mindset I know you won't go overboard. You might even treat yourself by investing that money wisely!
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