The economy is suffering due to the pandemic and many hard working American’s are suffering right along with it. To make matters even more difficult, there is a large segment of society that is currently planning for retirement in the very near future. If you are in this category, the good news is that your retirement can still go smoothly. There are a few simple and effective things that you can do in order to prepare yourself, even though the economy is in a rut. So without further ado, here are five (5) retirement planning tips for tough times.
Try Stay At Home Vacations Instead Of Going Away
Just because you have a vacation from work coming up doesn’t mean that you need to actually go away on an expensive trip. A stay at home vacation, also referred to as a “staycation” is a great way to save up some money that can be far better utilized during your retirement years. You can also use this free time to start new hobbies that you may enjoy when you are actually retired. In essence, you can use your next vacation as a trial run for your permanent retirement. That way you will be able to ease the transition from being a member of the work force to being a member of the retirement community.
Cut Down On Your Current Spending Habits
People are typically creatures of habit, which means that if you don’t plan for it, your spending habits will be the same when it is time to retire. That can put you into a dangerous financial situation. For example, when you retire you no longer have an income. Instead you will be living off of monthly Social Security checks. Some people will also have a retirement fund, pension, or savings. Unless you have a significant amount of money put away chances are you will have a lot less disposable income then you are currently accustomed to. That means you should start cutting down on your current spending habits in order to get used to it. As an added bonus, you can start putting the money that you’re saving away for the time that you do retire.
Cut Down On Your Expenses
In addition to cutting down on your spending habits, you will also need to cut down on your expenses. You might as well start getting used to it sooner rather than later. You can start by downsizing your house or apartment. You can also drive a less expensive automobile. Although you may be sacrificing a bit, it will pay off in the long run. Cutting down on your expenses now will not only get you used to a different style of living when you’re retired, it will also help you save up some money for retirement.
Save As Much Money As You Can
Do you remember that old saying by Benjamin Franklin? “A penny saved is a penny earned.” In essence, every dollar that you save now is one more dollar that you can live off of in your retirement. Staying at home instead of going on lavish and expensive vacations, cutting down on your spending habits, and cutting down on your monthly expenses are a great start. Try to think of some other areas where you can save money. A little bit of effort here will literally pay off when you need it the most.
Start Thinking About A Part Time Job
If you cannot afford to live off of your monthly Social security check, and don’t have a retirement account, pension, or savings put away, you’ll need to get a part time job. The good news is that there are a plethora of entry-level jobs that are perfect for retired people. For example, you can work at a local store, deliver pizza or be a greeter at Walmart.
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