Just before you hit that golden year, a big milestone in your life, there are some things that are better pat-down and settled to make sure you are celebrating your big 50 just as it should be, a golden jubilee.
With age comes wisdom and maturity, and you’ve worked hard to reach where you are at this point in your life, and we want to make sure that it stays that way, or make it even better as you age.
One of the important aspects of life that you should focus on and improve on just before you hit 50 is your finances. Being financially secure at old age is something everybody wants to achieve.
We want to talk about some senior money hacks where we are listing 8 Things to Financially Secure Before You Hit 50.
Tackle your debts
Before you hit 50, your goal is to tackle your existing debts from big to small. Getting them under control, and avoiding getting more is a sign of maturity, and it is not something you would want to drag along your golden years. 50 is a point where you want to start anew, with a fresh slate.
This means paying your credit card bills and loans even before it gains interest. Anything big started with something small, even with debts, that is why it is better if you pay off your debts while they are small rather than waiting for a chunk to come knocking at your door.
Controlled spending
Whether you are single or if you have children, money is always going to fly out of the window. Make sure that your spending is in control whether it be for necessities or luxury. There is no point in spending all your hard-earned money today and beg on the streets tomorrow. Make sure that while enjoying your money, you are also in control of it.
Your 50’s will be the time that you earn best, where there is less responsibility of supporting your children or your parents, and you are earning just for yourself. Don’t skimp on saving up for your dream retirement lifestyle and keep pocketing that change.
Define your retirement goals
Do not wait until tomorrow to define how you want to live your retirement years. Set a concrete amount that you want to set aside for the kind of lifestyle you want to live during your retirement. There are plenty of retirement calculators online that could help you compute and determine just how much you need to be saved in your retirement fund to keep your lifestyle going for the years to come.
Setting up a goal this early gives you enough time to assess your financial standing, if you are able to afford saving up for retirement, or if there is enough time or income to reach your goals at that certain age. Doing this now will help you better prepare for your future.
Inch on your savings
You have set a standard or goal for your retirement fund now is the time to inch on it. Start saving from every paycheck now. Start small so it does not have to affect your current spending and lifestyle now, but make an ample contribution to your savings every paycheck. There are not many saving options for senior citizens that is why starting young is the best way to make sure you achieve your financial goals by 50.
This is a discipline that has to be practiced to work effectively. Because it is a hard thing to practice, most Americans have no savings at all, or if there is it is never enough. What you can do to bump up on your savings is to set up automatic deductions so that a percentage of your paycheck goes to the retirement fund without you noticing it.
Check your senior’s income
Your retirement savings is a different deal than your senior’s income. Your savings are there to make your life comfortable, while your senior’s income is to help complement that kind of lifestyle you want to keep.
Your senior’s income includes your social security fund, your insurance policy payout, your investments, and so on. These are the funds that will automatically give you monthly income once you retire. You should check on these available services if you do not have them yet and start them while you are young. If you already have these services, you can recheck them so you can compute just how much you are going to receive per month so you can cross-check with your living expenses once you retire.
Update your will or get one
Your hard-earned money will not know where to go once you have passed or if you are incapacitated and not able to make financial decisions for yourself. The best thing to do is to get either a will, or a power of attorney, or get both. These two legal documents have different functions, so you should consider when you would need them.
A will is a testament to what will happen to your assets when you have passed away. The control over your money and property will be decided on by a court if you do not have a will. You will is your voice and power even after you are gone so design it wisely.
A power of attorney is a legal document where you are giving control and power to someone you trust to execute your decisions over medical and financial matters in specific circumstances such as when you are not able to make decisions for yourself because of an illness.
Give back
Giving back can be through your parents, siblings, other family members, or even charity. Through giving, you are gaining much more wisdom and empathy for people who are in a position you have experienced before. Give back to those who are in need only if you are financially capable without jeopardizing your finances.
End your mortgage
Just as mentioned above, paying off debts is a very important goal before you hit 50, and this includes your mortgage. It is hard to pull it off but you will be rewarded once you finish this heavy burden.
Adjust your insurance
Do you have insurance? You should get one, and if you do make sure it is properly updated and adjusted to your life situation as you age. There are plenty of insurance policy options in the market that caters to every need including healthcare, unemployment, and retirement. Knowing what you need and adjusting your policy accordingly will give you your money’s worth in the long run.