Your 60s is the time when you can either catch up or increase your savings. So, don’t coast along in your second and third acts. Instead, take important steps to ensure your financial security and freedom after in these years.
Here are seven steps to take to stay on top of your finances to alieviate stress over money.
Create Your Financial Calendar
Your third act is the age when your memory is possibly weak. If you dread remembering to pay your taxes or bills, set a reminder for all your necessary money to-dos. You can find many financial calendar apps online, which allow you to set a customized financial calendar.
Set Your Financial Goals
Who trusts words barely? Do you? probably no!
So, use numbers and dates to identify what you want to do with your money. How much debt you have to pay off? How much cash do you need to reserve for taxes and bills? And how much do you aim to save and when?
Setting your financial goals will help you stay motivated and disciplined when managing your finances.
Make Catch-up Contributions
If you are still employed, you qualify for catch-up contributions at the age 50. It’s an extra amount that you can contribute to your retirement accounts. So, make catch-up contributions.
Save in an employer-sponsored plan or add in a Roth IRA. It will give your retirement savings an additional boost.
Review Your Documents
Things change over time, but we often forget to adapt them. Your ex-spouse might still be listed in your medical power of attorney or you may still have your father, or other famiy member, listed as a beneficiary on your retirement plans.
Review your estate planning documents. Consider reviewing your life insurance policies, retirement accounts, bank accounts, and every other financial documentation to ensure that your power of attorneys or beneficiaries are up to date.
Ditch Huge Loans
You may, at times, need a loan to run your household or manage your expenses, but taking out lots of loans can be risky. If it does become a necessity, borrow only what can be repaid within the few years.
Keep Your Savings Safe
How, you ask? By keeping them out of your checking account. It’s tried and tested. When you see money in your checking account, most people can’t resist spending it. So, open a separate saving account to have enough savings for emergencies.
Start Saving Today
Start saving your money today if you haven’t already. No tomorrow. Not next month or next year. Today!
Little drops together make a sea, so is the case with money. Little savings of today will give you big relief tomorrow.
Do as much as you can to increase your financial contributions today to have financial freedom in the future. Keep your loans at the bay. Manage your expenses wisely. Know your goals and determine what you want to do in your senior years. Then, start saving money to realize your dreams.