Building up to a healthy retirement takes time, dedication, and careful work on your finances. Unfortunately, you may encounter an array of obstacles along the way—ones that you may not be able to weather if you’re not prepared. Keep an eye out for the following unsettling financial issues that signal retirement troubles—and try to stay one step ahead of them, too.
- Dealing with new or old money pits. If you have an older house that needs constant maintenance, a high-price hobby with little monetary reward, or a useless product that you can’t stop buying, enough is enough. Time to sell and save! You can use your newfound funds and savings to start building a retirement fund.
- Incurring 401(k) penalties. Your 401(k) is designed to become a resource for you once you hit the age of 59.5. Any prior withdrawals mean that you lose money that could have lasted you in your retirement. Make sure you talk to a financial advisor before you incur a penalty. There could be other options to explore—ones that don’t cost you excessive fees.
- Spending too much. For those who deal with credit card debt or paychecks that they spend as soon as they get it, spending too much can cause years of damage. Well, this is one of the biggest—and most common— financial issues that signal retirement troubles. It’s time to put a cap on your spending. Make a strict budget, focusing on essentials. It’s okay to treat yourself every once and a while, but make sure that you’re doing it a responsible rate. As you save more and more, try and pay off your bills, especially those with high interest rates.
- Not keeping an emergency fund. Even if you put aside $10 or $20 a month, it’s crucial to keep an emergency fund. It’s better to have a tiny bit of money to fall back on than nothing, but make sure that you’re consistently contributing to an emergency fund—it can even simply be a long-kept change jar. Otherwise, when an emergency strikes, you may not have any other resources.
- Trying too hard to regain savings. Losing your savings is terrible, but going too far to regain them can mean an even worse fate. Don’t over-invest in high-stakes possibilities. Otherwise, if you fail, you could add years and years to your wait for retirement. Remember the old phrase “slow and steady wins the race.” Even if saving gradually through safer investments will take longer, you won’t have to deal with the horrible possibility of incurring even more debt.
- Refusing to listen to advice. That’s right—ignoring help is a financial issue. Whether your spouse or partner is trying to advise you to make better financial decisions, or you’re going into the investment world blind, this is on one of the main financial issues that can signal retirement troubles. There’s a simple solution: hear people out and ask for help. After all, you need as much knowledge on the subject as possible to create a solid nest egg.
Recognizing any of your habits among these financial issues that signal retirement troubles isn’t unusual. Most, if not all, people in the workforce have found themselves struggling with any number of these problems. Luckily, now that you’ve identified your problems, you can dedicate yourself to dealing more responsibly with your finances.
Need a responsible helping hand to grow your savings, money-protected? Let the experts at Ty J. Young Inc. help you pad your retirement fund. Call us at 877-912-1919 get the ball rolling. Interested in learning more about creating a sizeable retirement fund? Our blog has pages and pages of helpful advice.