3 Steps to Saving for Your Future Even in Your 40s
Are you in your late 40s and starting to worry whether you can still save money for your retirement without relying on Social Security alone? Well, you are not alone and definitely not too old to give it a go. Sounds easily said than done? Maybe, but if you start today and stop wallowing in regret, you can start with a clean slate.
Here are 3 steps to take to be more financially ready come retirement:
Get a job or start a business.
An obvious step would be to have a source of income not only to get by but to have money left to keep. You can also start a small business from home to cut down on rental and gas expense. Or you can look for a job that offers a retirement plan on top of health insurance. A regular income is what you need to start.
Pay up your credit cards.
Having credit cards is not bad. In fact, maintaining at least three can boost your credit score, that is, if you have good credit card history. But if you are always late in payments or are still paying the minimum amount each month, you might just be in debt all your life, paying just the interest. What you can do is pay as much of what owe and maintain just three. However, you can interchange using just two and see to it that you pay the whole amount each billing period.
Set up an IRA.
If you have a 401 (k), this might not be much of a problem but if you don’t, an IRA (Individual Retirement Account) is your best bet. This is ideal especially if you have a small business. Not only will you be able to apply for tax breaks. You can start with 5,000 and slowly increase it as the years go by. By the time you retire, you have a substantial amount to enjoy.
Of course, there are still other ways to complement these three like cooking at home instead of dining out, shopping wisely and living a simpler lifestyle. Albeit, the more important thing is to know it is not too late to fix your finances and start doing so today.