Business

How To Have A Debt Free Retirement

Save money

September 21st, 2018   |   Updated on January 22nd, 2019

According to a research, about 70% of the people living in the United States are not ready for their retirement at all. They basically have no idea what they would do once they retire from the job.

This is kind of like a retirement crisis you can say. If you belong to one of these people, then let me tell you that you are on the wrong path.

You can never be sure that you will be stable financially unless you start planning for the retirement and start saving up money.

Here are some good steps you can take so that you can be debt-free after retiring from the job.

5 Things To Do For A Better Retirement

1. Keep The House Expenses As Low As You Can


View this post on Instagram

A post shared by Sheree Richardson (@shereerichardson) on

According to a survey, it is possible to keep the housing expenses (including the cost of mortgage payment/rent, taxes, and insurance) as low as 28 percent of the monthly income.

The average household income in the United States is about 58000 USD per year. Which means if the monthly income is about 4833 USD, then the monthly housing expenses should be no more than 1353 USD.

Try to plan the household expenses ahead every month, and make some sacrifices to stick to it.

 

2. Join A Debt Relief Program


View this post on Instagram

A post shared by Greenwise Financial Solutions (@greenwisefinancialsolutions) on


One good suggestion would be to join a debt relief program to be sure that you will have a debt-free retirement.

There are companies that offer such, and the one that is recommended is the Freedom Debt Relief which has helped thousands of people resolve their problems.

You may check https://www.crediful.com/debt-relief/freedom-debt-relief/ for a review of the company.

 

3. Try To Avoid Car Payments


View this post on Instagram

A post shared by Bsmart Autocentre🚙 (@bsmart_autocentre) on


Most consumers get stuck with vehicle debts all the time. There is no problem in entering retirement along with a car payment, but it will require bigger withdrawals from your savings account to cover the car payment.

Best way to avoid this is to consider the transportation needs well ahead of your retirement date. If you are married, then after the retirement, only 1 car would be sufficient for both of you as neither you nor your wife has to go to different jobs.

Using public transport, taxis and other services such as Uber or Lyft is a good option to avoid car payments as well. Retirement will be way easier if you do not have to make car payments.

 

4. Get Out Of The Student Loan Debt


View this post on Instagram

A post shared by YORLENE CINTRA 🇺🇸CREDIT REPAIR (@yorlenecreditservices) on


According to a research, about 14 percent of the parents take student loan in order to pay for their children’s education.

With the increasing university tuition fees, you will be in the student loan debt for a while if you do not clear it off before you hit retirement.

It is recommended to start saving early for your children’s education fees in order to avoid a huge debt. If you are having a huge trouble of clearing the student loan, then it is a good option to take another personal loan online with lesser interest and pay for the student loan with it.

 

5. Avoid Any Kind Of Short-Term Debt


View this post on Instagram

A post shared by 👑MONEY MAN💲💰💸 (@money.mania) on


Short-term debts can screw up your retirement plans. Paying them off as soon as possible is the best way to deal with them.

Sit back and find all the short-term debts you are in, and calculate whether you will be able to pay them back before your retirement.

If you see some of them are exceeding the time of retirement, then make some changes in your lifestyle in order to clear them before you enter retirement.

 

Conclusion

By now, you should have probably understood how important a proper retirement plan is. The sooner you plan things the better your retirement will be. We hope you have enjoyed reading the tips. Good luck!

Related Articles: