Saving for retirement can sound scary, but if you crunch the numbers and save the right amount of money, having enough to pay for your Golden Years doesn’t have to be too difficult, even if you plan on living in an assisted living community.
A recent article in USA Today found that if Baby Boomers stick to five principles, they will be able to financially prepare for retirement. Whether you live in Texas or Tacoma, these tips should help:
1/ Know your financial situation: How much money do you have saved right now, and what kind of retirement lifestyle do you plan on living? For example, are you looking forward to fancy vacations or staying in town and working on the house?
2/ Determine the magic number: Select the age when you’d like to retire, and see how many years in the future that is. For example, if you’re 35 years away from retirement, calculate how much money each year you will need, and then multiply by 35.
3/ Make room in your budget: It’s not fun or easy, but it is important to look at your monthly expenses and see where you can cut to save extra money.
4/ Be consistent: If you’ve cut money from your budget and you’re on track to your retirement goals, stick with it.
5/ Review every year: Circumstances change all the time, and there may be less – or more – money in a year’s time, so it’s important to keep track of your finances in case any changes are necessary.