Financial freedom. This often feels like a fairy tale that’s achievable only in fiction. Isn’t it? At least after what happened last year when the pandemic wreaked havoc on the global economy. And if you are a senior with tens of thousands of loans, this outbreak would have genuinely created a roadblock towards your path of financial freedom.
Surprisingly, as per a study, more than 70% of workers confirm that they are usually behind schedule when it comes to saving for retirement. If that’s the case, how can you think of starting new hobbies or starting something you always dreamt about?
In this article, we’ll share some thoughtful financial planning tips to help you start your golden days of solid financial footing.
Budgeting is The Key
If you want to live a happy life without causing you financial distress, you need to know where money is coming from and where it is going. For instance, do you have any pension, retirement accounts, salaries, interests coming your way? Based on that, you need to make your expense sheet. This will help you track your spending.
If you are spending money on any item that no longer holds importance, you can easily cut that out and readjust your budget accordingly. The aim must be to save more and spend less for the time being until things get better.
Spending is Inevitable- Create a System to Manage Expenses
Understanding all your options is the best way to ensure you’re doing everything right. For instance, dealing with cash might not allow you to track your expenses well. And honestly, you can’t manually keep track of all such spendings. In that case, you can take the help of credit cards or reward programs to manage your expenses.
Remember, the idea here is to keep a record of money flow. Hence, you need to research and choose the options that suit your needs based on your personal or financial lifestyle.
Use Reverse Mortgage as a Cash Lifeline
With the coronavirus not slowing down anytime soon, investment portfolios are not providing the same results as they used to a year and a half back. Even S&P 500 is down by more than 10%. While investors might be feeling the heat, this is incredibly much more devastating for retirees. This is resulting in a sequence of return risks.
Experts suggest not to take any money out with the market going down. But not everyone can opt for such choices. This is where a jumbo reverse mortgage can come to the rescue. Undoubtedly, this is causing an uproar in demand for reverse mortgages. Finance professionals claim that this option could act as a second source of income for many benefits associated with it.
Most times, older adults give away their hard-earned money to their children. Doing so might hamper your path to financial freedom since you won’t be able to manage the expenses well when faced with financial hardships.
Remember, planning is critical to achieving financial freedom. However, if you did not comply with the set rules, don’t worry. You can start with your plan today and lead the stress-free life you deserve.