In times of crisis, retirement planning becomes even more important to avoid the lack of control in the accounts and the accumulation of debts. It is a fact, however, that most people are still reluctant to organize their finances and end up suffering the consequences.
For you, who have already taken action and prepared a plan, we have prepared in this post some items that will help you to face moments of economic instability with greater security. Check out!
Avoid late payments
Despite the slight reduction in the Interest rate announced by Policy Committees, interest rates remain alarmingly high. Therefore, failing to pay bills on time is a mistake that can cost a lot in the end.
Make sure you always pay on time and also avoid making payments below the total amount on your credit card bills. Avoid interest and penalties that can eat away at your budget.
Do not buy more than necessary
One of the basic advice from retirement education experts is to avoid superfluous purchases. In times of tight budgets , the recommendation grows in relevance. A good method to avoid the urge is to plan ahead and not leave the house without first making a shopping list.
Price research is also important to keep your finances healthy . With a little patience, it is possible to achieve good savings when comparing prices. It is necessary to be aware, however, of travel expenses, which can jeopardize the amount saved.
Don’t spend more than you earn
This sentence should become a motto in the life of those who want to have a safe retirement planning. Constantly evaluate your expenses (don’t forget to make a strict control, without missing the smallest details) and have discipline so that the expenses do not exceed the income.
Perhaps it is also time to reevaluate your standard of living. Try to adapt to reality. Expenses such as internet and cable TV packages, for example, if not eliminated, can at least be reduced by hiring cheaper plans. Also evaluate your habits and try to find ways to reduce costs, without necessarily compromising your quality of life.
Set goals
All planning, to be successful, needs goals. In finance, it would be no different. If you are in a stable situation, take the opportunity to set goals for the future and make plans to achieve them.
The purchase of your own property, a dream trip, even if they seem incompatible with moments of crisis , are excellent motivators to keep the execution of retirement planning in full swing.
Make a retirement reservation
Speaking of plans, it’s worth focusing on building an emergency reserve to give your retirement planning even more security . There is no consensus among experts in the field, but it is estimated that an amount equivalent to six months of your salary is ideal for maintaining quality of life in the event of unforeseen circumstances, such as unemployment or medical treatment.
The retirement reserve also has a positive psychological effect, preventing hasty decisions from being made and guaranteeing breath until adversity can be overcome.
It is important to keep retirement planning firm and make it as safe as possible to face the crisis. What about you, what have you been doing to ensure your retirement stability? Tell us your experience in the comments.
Posted by: John Labunski retirement advisor