Paying off all of your debt before retirement and entering your golden years debt-free comes with a certain level of comfort. Making the most out of your limited retirement income is what every retiree hopes to accomplish and becoming debt-free is the first step.
Here are a few ways you can begin to eliminate debt and be on your way to a much more relaxing, anxiety-free retirement:
Pay off your student loans. Develop a payoff timeline to eliminate your student loan debt by retirement. One way to accomplish this is through a home equity loan, which has the double benefit of paying off your debt when you downsize your home.
Cut up those credit cards. There are few quicker ways to go into debt than through the overuse of credit cards. Interest accrues on your purchases and works against you. Avoid purchasing anything you can't afford to buy with cash, and avoid the temptation to pay only the minimum balance due. If you don't want to eliminate credit cards from your life, at least swear off irresponsible use. Your investment savings will reflect your decision.
Eliminate unnecessary expenses. Get creative by finding ways to lower your expenses (buy cheaper coffee, shop discount sales, etc.) and bank the difference. Cutting out a 5 dollar latte from each day of your 40's can mean having an extra grand in your bank by the time you reach retirement age.
Stop loaning money to family members. To retire debt-free, not only must you stop borrowing money, but stop loaning money as well. Family members who are aware of your retirement nest egg may assume you're the best person to ask for a loan, so nip it in the bed well ahead of retirement. Not only will you save more retirement money, but you'll also eliminate the tension that comes when one person doesn't hold up their end of the bargain.
West Financial Group can help you make your retirement money go further and put you in the driver's seat to financial success. Contact our team today.