If you were born between 1965 and 1980, there’s a good chance you remember a time when MTV was responsible for fulfilling your music entertainment needs and there’s also a good chance you have retirement in your not-so-distant future. Even if you didn’t begin planning as soon as you entered the workforce, it’s never too late to start now.
Opening a personal retirement account that isn’t tied to your job, AKA an IRA, is a great place to start for retirement savings. Even if you have a job with a great 401k, you’re free to open an IRA. You can contribute to both. Carrie Schwab-Pomerantz at Charles Schwab states, “there’s a good case for having an IRA in addition to your 401(k). An IRA not only gives you the ability to save even more, it might also give you more investment choices than you have in your employer-sponsored plan.”
Establishing a budget doesn’t have to be tedious and time consuming. It can be as simple as looking at last month’s bank statements to figuring out how much you have coming in, and how much money your bills, debts, and sustenance are costing you. Once you’ve done this, you can have a better picture of how much you have left over after your financial obligations are met. This should paint an accurate portrait of where you can start to trim your spending and reallocate those funds to get yourself out of debt quicker.
Pay Off Your Debts
According to a study done by LendingTree Generation X “has the highest average debt burden of any generation.” There is no time like the present to start getting that whittled down, so it isn’t something you have to be concerned about when you enter into retirement. Paying off debts also boosts your credit score, which will lead to a better interest rate for buying a home.
Buy a House
Entering into a 15 to 30-year mortgage loan may seen counterintuitive if you’re hoping to hit your golden years debt-free, but purchasing a home is a great investment in your future. If you make updates on your home, you can add to the value if you ever decide to sell it. Once it’s paid off, you won’t have to worry about monthly rent or mortgage payments. If you do decide to move, you can rent out the space for extra income, or use the equity built up in the property to finance your new place.
You’ve watched music go from radio to cable television to streaming on demand. You’re adaptable to change, and so is your retirement outlook.