Don’t Waste All Your Money That You Need To Live On
When you come into a lump sum of money, for instance from a tax return or an inheritance, always put a portion of it aside for a retirement account.
Do as much as you feel you can afford, but as a rule at least ten percent, if not twenty. This will help make up for slower saving years and always keep your investments moving forward. Plan out how much you need, and how much you need to save each year. Don’t forget to add in the returns on your investments, like a 401k or IRA. Making a plan is key to any successful retirement savings.
Then do the math again changing the number of years you’ll be in retirement, to get some numbers for what you’ll need if you retire earlier or later in life. This gives you some estimations of how much you need to save (remember you’ll get returns on your investments that will help with this) and how much of a difference earlier and later retirement points makes.
The best scenario that you could possibly have is to have a large sum of money and to be able to live a little bit frugal for the rest of your life. This is not always possible for everyone and that means that you should know how to keep what money you have safe. Also, knowing how to grow that money is a great tool to have in your toolbox.
You must mix you assets up, even though bonds are generally more safe. Having all bonds could go against you, due to rising inflation. With the dollar that keeps falling, there is no safe place for money anymore. You can keep it in money markets if you choose, but the market is not what it once was. By mixing the two investments, you are significantly reducing the risk of your downside.
If you just spend a little time each week reading about different subjects and trying different activities, then you will start to learn who you are and just what you enjoy doing. Many of us get blinded by working all the time. We lose track of what we enjoy in life.
Also take care of any maintenance that you have been putting off with your home. Get a few new appliances, a new roof, and you might paint the house. When you do this, you will help put your mind at ease.
Get a newer car or go ahead and fix anything you know will need repairing in the future. Get all of the big budget items that could come up out of the way. You might want to go ahead and get that tune up, replace some shocks and struts, and whatever else might need to be done.
While you are still working, make sure that you are paying your biggest bills down. You will want to pay down your college education and any improvements to your home that you want to make.
Learn more about Timing The Stock Market.
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