Nobody wants to think about getting old. The sad fact of the matter is that we all will do. The funny thing about time is, it seems to move really slowly when we are younger. Then, the older we get, the faster it moves. The first day in anyone's life is a long time. It's all of the time that they know. At a year old, that year is a very long time. The second-year will be half as long. Time shrinks in relative terms to our age. And, before you know it, life has passed by in a flash.
As such, starting in our careers, we need to be trying to plan as far into our futures as possible. Thinking about retirement options and what will happen after we die is essential. Leaving these things to chance could make the later part of your life unhappy and stressful.
Investments And Pensions
Putting money away for retirement is vital. You might have a steady income now, but when you are unable to work, how will you earn money? Spending everything you make now may seem natural, but you should keep a little aside every month towards your retirement.
If you work somewhere that has a pension scheme, take advantage of it as early as possible. You probably won't miss the fraction of your salary that gets taken off each month, and after you retire, you will at least have some income. Start paying into a pension while you are still young.
You may want to invest in stocks and shares as a way of building up equity for later in life. There is obviously a degree of risk in this, and you need to understand how the market works and make informed decisions on where to put your money. Spreading your investments across a number of different concerns will lessen the specific risk. And watching the markets and knowing when to withdraw your finances is crucial.
Investing in areas such as technology and energy might allow for massive growth in share value; however, this can quickly plummet due to the ever-changing nature of the sectors. Putting your money into savings bonds, securities, and life insurance products is a safer area to invest.
A Roof Over Your Head
One of the most significant outgoings that you probably have is your rent or mortgage. With the transient nature of careers in the modern era, we're often left renting properties for one reason or another. It may be that you don't want to be tied to one place for too long. Though a very common reason is because of house prices, and the prohibitive deposits required to take out mortgages.
Renting is excellent in the short term, as it can mean you have options open to you. Moving on from a rented property is far less complicated than selling a home and buying a new one. But realistically, in the long term, you are throwing money away. Rent charges are often similar, if not more than mortgage repayments would be on a comparable property. But the money you pay into a rented property only goes to profit the landlord. At the end of a mortgage arrangement, you own a property outright, and there will be no rent or mortgage to pay again.
Having a property with no rent and no mortgage to pay is ultimately your end goal. This will significantly reduce your monthly outgoings, meaning your money can be used for food, bills and most importantly, enjoying your life. After all, you’ve worked hard for this.
You might not want to think about what will happen after your life, but it is something that you should consider. Particularly if you have children, visit estate planning lawyers and discuss setting up a will to make sure that if the worst does ever happen to you, your family will be provided for, and there will be no complications when it comes to passing on your possessions to those close to you.
Without a will, any money or property that you own may be divided according to how the law believes it should be split, rather than by your wishes.
Thinking about the future might be hard. You might not know what you'll be doing next year, let alone in a few decades. But with each generation living longer than the last, consider how long you will live after the age of retirement, and think about how you will afford to live during that time.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.