Many people are fast approaching retirement age and are worried about what is going to happen when the time comes to stop work, as they haven’t managed to put any money away in the bank to see them through the years ahead. Retirement does require planning, advanced planning but there is a way of retiring if you haven’t managed to put enough money away.
Curb Your Spending
It might sound like simple advice, but if you want what money you have to see you well into your retirement you need to stop spending it. Think about it, the more you spend now the less you will have to live on over the coming years. Spend only on the basics that you need. Stop buying books and magazines, go to the library for them instead. Stop visiting coffee shops and enjoy a cup at home with your friends.
Curb the amount of money that you spend on clothes, try adapting the clothes you have, accessories, look in thrift stores and charity chops for bargains. Tighten your shopping budget as much as you can, get it down to the point when you can live quite frugally. All of your monthly expenses need to be reigned in, this may mean that you are going to have to move to a smaller house in a more cost effective area. This is imperative if you are retiring without a cushion of money in the bank to fall back on.
Get Rid of Your Debts
Set yourself a goal, say of about five years to get all of your debts paid off. If you are having trouble seek advice from a not for profit financial advice organization, your local Citizens Advice Bureau should be able to point you in the right direction. In order to be able to retire without money in the bank you need to have all of your debts and credit cards paid off.
One of the biggest things that you have to realize is that you are not going to be able to sustain the lifestyle that you currently enjoy. This is not however the end of you being to enjoy life, life does go on once the money has run out. Often living for as little money as possible and watching where every penny goes, gives you a new perspective on just what is important and your close relationships will benefit.
Setting the Wheels in Motion
You have your five year plan, now you need to start following it.
- Keep your monthly financial commitments as low as possible.
- Look to see if you can claim any benefits that could help you out.
- Sell items that you no longer want or need to raise extra cash and save the money that you make from the sale of these goods.
- If you own a property look into selling it to raise capital. Invest this capital to generate a regular income over the coming years. Look into blossoming small businesses looking for investment etc.
- Start renting, you will have less overheads.
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