Retirement Debt Problems Can Come From These Situations

Retirement Debt Problems Can Come From These SituationsThere are retirement debt problems that you need to be on guard for when you are nearing that stage in your life. It would be a shame to undo decades of hardwork just because you did not manage your retirement money well. You might be on track with your saving but a few wrong moves and you start to entertain the thought of going back to work because you do not have enough to retire on.

Retirement should be fun and it needs to excite you because you are about to enter a new phase in your life. You are about to disengage from the nine to five rat race and spend time doing what you love to do. This is a lot more exciting if you really did not love what you have been doing for the past few years. These things tend to happen and make retirement all the more appealing.

This thought makes it more important to take note of potential retirement debt problems. This helps you stay the course and be able to enjoy your golden years. If not, you will need to keep working for a few more years just to reach your goal. That is if you reach your goal because small miscalculations can end up costing you big time.

Compound interest is a great tool that helps you grow your savings and investment over time. When you miss out a few years of using it to your advantage, it might be hard to catch up to your goal. Not only will you save for the actual amount you should have put in, you need to factor in for the lost interest for all the time that you did not save. Here are a few more pitfalls in retirement planning you need to be aware of.

Co-signing loans

One of the retirement debt problems you can get into when you hit your golden years is deciding to help with loan applications of family and friends. It is not uncommon for family and friends to come up to you asking if you can co-sign a loan so they can be approved. The reason for this is that they believe you do not have any big purchases looming in the near future. That and the fact that you might have a good credit score. This is a quick way to get into financial trouble in retirement.

Once you agree to this, think of it like you are applying for a new loan under your name as well. Even if the other person assures you that they will keep up with the payments, once they miss one or two, your score will be affected as well. Worse, if that account goes into collection, you will start to get harassing phone calls.  

Grabbing quick-rich schemes

Retirement debt problems usually start when you begin to gabel with whatever amount you have saved up. You can make the argument that you are simply trying to increase your nest egg but the end will never justify the means. It takes a lot of hardwork and planning to ensure that you have enough funds saved for the future.

It will be enticing when someone approaches you promising you unbelievable returns on your investment with minimal risk. If it sounds too good to be true, there is a big chance that it is. What you might be thinking is that it gives you the chance to reach your goals faster. However, you might end up adding a few more working years. This is because you lost your investment and you are now further away from your goal from when you started.

Spending too much in a hurry

Once you hit retirement, you might be eager to spend your retirement money rather quickly. You go out and neglect the fact that you have a budget to stick to and run up quite a long list on credit card purchase. You lose your sense of direction and just go out and paint the town red. This is because you believe this is what retirement is all about.

Retirement debt problems will not be too far behind if this is your way of thinking. You need to remember that you worked long and hard to save up money for retirement. If you keep on spending like there is no tomorrow, you will soon find the need to go back to work. This is because you have used up all your retirement fund too quickly.

One you hit retirement, you need to stick to your budget and your plan. It is an exciting time for you but you need to keep your emotions in check. Be careful and continue to monitor your finances even in retirement. This is one way of guarding your funds and ensuring that you get to enjoy your golden years with your funds intact.

Charging too much in your credit card

This is a lot similar to being too excited at the beginning of your retirement years. However, this can happen over a long period of time. This might even be one of those financial habits that you need to change. Credit card use can help you manage your finances and even your budget better when done right.

However, when you lose control and start using your credit card aimlessly, you tend to rack up some big debt amounts. CNBC shares that credit card balances of Americans is over $6,000 so you better keep track of your spending. Try not to use your card for a purchase which you cannot pay for in cash. Once you use it to cover your cash shortage, your problems will start to come rolling in. You might even start to alternate and transfer credit card debt just to stay afloat. Debt is something you need to avoid when you get to retirement.

Lending money left and right

One of the most common retirement debt problems is lending money to family and friends. There is nothing wrong with your desire to help but not to the extent where you put your own finances in peril. There are a few reasons why family and friends seem to flock to you asking for help while you are in retirement. One is that they might think that you have no need for cash since you are already retired.

The truth, however, is the exact opposite. You actually need it now more than ever because you no longer have a steady source of income. When you retire, you are actually relying on what you have saved up for the past few years. This will be your main source of funds for all your retirement expenses and needs. Once you lend money to people, you are putting your retirement in danger.

Neglecting your health

When you retire, you need to make sure that you are still able to take care of your health. A healthy and sound mind and body keep you away from sickness. The healthier you are, the less you need to spend on doctor and hospital visits. It also helps that you get to enjoy a better quality of life when you are healthier in retirement. You get to do more activities even at old age.

There are a number of retirement debt problems you need to be aware of when you plan for your golden years. Knowing these potential pitfalls makes you more aware of what to avoid and help you prepare for them better.

Online Shopping Addiction And How To Get Out Of It

Online Shopping Addiction And How To Get Out Of ItOne of the more taboo topics at this time is online shopping addiction. It might seem unlikely that a lot of consumers are getting hooked at purchasing just about anything online with debt levels on the rise. Advances in technology have given people the convenience they did not have before. In the comfort of their own homes, they can buy the things they need without even taking bath and putting on clothes to get to the shops.

From needs, this attitude has easily affected wants as well. At this point, if you wanted to buy something from the store, you do not have to go through all the hassle of preparing to go out. Not to mention you still have to commute or drive all the way to the store and back. By the time it took you to prepare and get dressed, you would have done your online shopping and be back to bed for a few more minutes of sleep.

The convenience and even simplicity of shopping online can be tempting and lead to online shopping addiction. This is a state where you simply shop uncontrollably putting a lot of areas in your life at risk. It can affect not only your finances but other areas as well. If you stay up late nights, your health can be affected. Your mental health can also affect when you start to rely on shopping for some mental and emotional needs.

It might be tough to discern whether you are already addicted to online shopping. However, here are a few of the things you need to look out for which are clear indications of online shopping dependence.

Spending more and more time shopping online

You might have started with just browsing some online stores from time to time or just clicking through some of the online ads you see. Then you just try buying one item just to try it out. You then actively look for items you need online to make purchases more convenient. The next thing you know, you start buying things you want because it is so easy to purchase.

At this point, you might already be spending too much time surfing through and buying things you may not need. This is already a sign of online shopping addiction when you start to spend way too much time online. There is also a big possibility that you have saved your credit card information in your device making it easier to purchase.

Your purchases are getting bigger and bigger

You could have started with one harmless item as your first purchase just to try out online shopping. There is a big chance that you really do not have any need for it. You then move on to something you need at home or at work. This becomes a regular practice since you do not even have to go out and buy what you need. However, if you start to realize that your online shopping is becoming more frequent and the amounts getting bigger, that is a sign that problems may start to exist.

You start to look forward to your next purchase

One of the signs of online shopping addiction is when you start looking forward to your next purchase. You get a certain feeling of rush whenever you purchase online and you want to do it again and again. It becomes more frequent because you can no longer wait for the next one. You look forward to the next one so the gap in between purchases becomes smaller and smaller.

You start hiding your purchases from your family

One of the tell-tale signs that you really have a problem with online shopping is when you start to deliberately hide your online activity from people that you love. You could be doing your shopping in the early hours of the day while everyone is sleeping so you can hide your purchases. It is also possible that you could quickly be deleting traces of your online activity so people don’t know what you’ve been up to.

Hiding your online shopping activity can take on many forms. You might even be having some items delivered to your office so people at home don’t find out about it. It is also possible that you have asked the help of a friend to receive packages on your behalf or even having them delivered to a PO Box so your spouse can’t find out about what you are buying

What to do to battle online shopping addiction

The examples mentioned above are just some of the signs that you are already addicted to online shopping. Addiction to online shopping is a growing problem according to Market Business News. Once you are, you will start to notice that it ripples out to other areas of your life. Apart from the obvious financial strain, you might start to feel emotionally distant from your spouse simply because you are starting to hide your addiction from them. This can even affect your mental health with all the secrets you are keeping. Here are a few things to do when you find yourself in this position.

Face your problems head on

One of the very first things you need to do is acknowledge that you have a problem. This is step one and acknowledging your addiction to online shopping. As you do this, it gives your problem some shape and form. As this happens, you can start to talk about it and put together a plan to overcome and conquer your addiction.

You will have a tough time overcoming your problems if you keep brushing it aside. If you continuously shove your monthly statements and bills over to one corner of your table just so you are not reminded about them. If you start to focus your attention on facing your problems and opening your statements, you will know what you are up against.

Understand why you shop in the first place

There will always be an underlying reason why you are suffering from an online shopping addiction. It can be a lack of financial direction or goals in life, social pressure and the need to belong, or simply your way of escaping a reality you are not happy with. Whatever the reason is, you need to identify it immediately so you know what you can do to counter it.

Put safeguards to ensure do not go back to old ways

Once you have identified what is pushing you to shop uncontrollably, you need to put in safeguards to help you from relapsing into your old self. Try to put in specific savings goals to help you channel your funds into something else other than online shopping. You can even choose to automate your savings so the money is transferred to an account even before you get any ideas and splurge again online.

It might also be a good idea not to save any credit card details on your devices so you cannot pay for items easily. When you have them saved in your devices, it is a lot easier to pay for items online. Also, try to block off some shopping sites from your computer and even mobile devices. This keeps temptation at bay when you are using the same for work or a side gig.

There are a number of reasons why you would develop an online shopping addiction but there are ways to address it. You just have to be up to the challenge and be consistent in your desire to improve your way of life.

Smart Spending Tips For Smart Spenders

Smart Spending Tips For Smart SpendersIt is a good idea to look into smart spending tips to help you manage your finances. In today’s day and age, you might need just about all the help you can get. This is because a lot of consumers and households are struggling to manage their finances. A lot of people are also having a tough time handling debt as well.

According to The Motley Fool, the average household debt is over $137,000. That includes a lot of items from mortgage loans to car loans and even credit card debt. One thing you need to remember is that debt is not necessarily a bad thing. It is how you use it that makes all the difference. That is why you need to be smart with the way you spend your money.

Of course, that is easier said than done. For one, credit cards have made it a lot easier to purchase items even those that are out of your reach. You end up buying things you don’t really need and can’t afford. There are also times where you purchase items that have no real value for you except for immediate gratification.

However, this does not mean that you cannot spend money outside your basic needs. You just need to look into smart spending tips to help you guard your finances against impulsive purchases. There always has to be an end goal to your purchases more than just liking those pair of shoes. If this is what you are looking for, take a look at some of these tips.

Buy things that will help you earn more

This is a sound piece of financial advice when you are contemplating on a purchase right in front of you. While you are out and about shopping in the mall or even if you are at home on the bed browsing through online shopping sites. Before you head out to pay or to check out the item, try to think about the value it brings to your income.

If you are buying a new car, why do you need it in the first place? One of the smart spending tips is to ask yourself this question first everytime you will make a purchase. If you want the car because you want to impress people around you then that will not bring you anywhere. However, if you need it because your business requires you to be on the road a lot then a new vehicle becomes a good investment.

The same thing with personal gadgets, you can always ask yourself the same question. Why will you buy a new laptop? If you just want the same one your friends have then you are better off not buying one. But if you need it to get some side gigs done at home or to stream movies because you cut your cable already then that could be a good choice.

Will your purchase help you save time?

Forbes explained in an article how value is not inherent but rather subjective. Simply put, you have the tendency to put more value to a specific item in relation to how it can satisfy a want. If you were presented right now a bottle of clean and drinkable water and a big diamond, you would reach for the diamond. But if you think about it, you cannot live with water but you can live without the diamond.

Following that approach, you need to make sure that you have your priorities in line and that starts with valuing your time. One of the smart spending tips is to try and figure out if your purchase will help you save time so you can put it to other users. You can either use your free time to try and earn more or spend it with the people that matter to you.

If hiring cleaners will give you more time with your family when you get home then go ahead with it. You might have the chance to get started with a side gig at home if you just order your groceries online. It saves you time from having to drive up and down the grocery when you could already get started with work.

Spend on experiences

One smart tip on spending you might want to contemplate on is where you spend your money. Do you favor gadgets that will depreciate quickly or spend money to learn new things? One of the smart spending tips you can look at it using your money to create a better version of yourself. One is keeping a healthy body by joining fitness classes or going to the gym.

Feeling good can help you become more productive at work or in growing your business. You can also take classes to help you improve on areas you are struggling with or want to improve on your core strengths. The bottomline is to continuously learn and find ways to improve yourself to help you enjoy life better.

Work on your hobby

One of the smart spending tips you can consider is to try and make improvements to your hobby. For one, it gives you the chance to have an outlet in case you are having a bad day or week. It can also be a good form of relaxation for you on weekends or during long holidays. Your hobby can even help you save money when you can gift it to other people.

Another benefit of working on your hobbies is that it can be a good source of income or a valid career option in the future. It can become an income-positive hobby for you to help augment your income in your budget. It may even be a solid option as a career when you decide you want to pursue something you love doing.

As you work on your hobby, you develop a channel to de-stress after a hard day’s work. This is one of the reasons why this is considered one of the smart spending tips to look into. If you love cooking or baking, it gives you something to look forward to when you get home. It can also be a great bonding activity with your whole family. You can ask the kids to help around and you can start teaching them as well.

Hobby for retirement

When you hit retirement, you can turn to your hobby to help keep you pre-occupied in your transition to a new phase in your life. It can even bring in extra cash you can use in retirement. If you love taking photos, offer your services to venues as a part-time photographer. You can also talk to some coffee shops and restaurants if you can deliver some home-baked cookies they can sell to their customers.

There are a number of smart spending tips when you start to pay more attention to the way you manage your finances. The better you are handling your budget, the more productive you can be. You get to do more by carefully selecting where you put your money. As you do this, you achieve more in life and reach your goals faster. You may even be able to retire earlier with a secured nest egg giving you the chance to enjoy the results of all your hard work.

Tips To Stop Stressing Over Money To Keep You Healthy

Tips To Stop Stressing Over Money To Keep You HealthyOne of the hardest things to do when it comes to your finances is to stop stressing over money. This is simply because there is a big chance that a bulk of your worries revolve around money. It is also possible that if it is not about money, a part of the whole problem will have something to do with money. More often than not, it would be the lack of money that you are stressing over.

There are some people who may have more than what they need to live a comfortable life. But they still have a lot of worries on their plate. For some who are barely making ends meet, one miscalculation and their finances will go haywire. Then there are those who are not making enough for their basic needs. The main problem and bottomline all gravitate down to how to properly allocate their funds.

For these people and all the others in between, it might be hard to tell them to stop stressing over money. This is because money and the use of it are deeply ingrained in the daily lives of people all around. Consumers will be thinking about it, earning it, using it, and even giving it away on a daily basis. There are even some people whose daily routine revolves around earning enough money so they can spend it.

One thing you have to understand when you start stressing over money is that it can manifest physically over the course of time. Simply put, stress can make you sick. WebMD explains that stress can result in headaches, low energy, and even chest pains. These are some serious manifestations of stress in your body which could lead to more medical complications.

Once you understand how stress can manifest in your life, you need to look for ways to manage it. Your health could improve if you start paying more attention to money stress and how to fight it off. Here are a few things to look at when you want to manage and be more proactive against it.

Face the problem head-on

It is one of the simplest solutions to stop stressing over money but not a lot of people want to do it. It is the simplest yet one of the hardest things to do. You might have this habit of skipping over your monthly billing statements because you do not want to know. You do not want to find out how much you owe your lender and how far behind you are in your payment.

This denial will eat you alive and your stress level will only grow with each passing day. Not knowing what the problem is will only make matters worse. If you do not have an idea how much you are in debt, you will never make any changes with the way you live. Once that happens, you will increasingly bury yourself in debt.

If you want to stop stressing over money matters, you need to face the music. Open your monthly statements and look at your total amounts. Tally them up so you can see the whole picture. Make a list of who your lenders or creditors are and how much you owe each. It is also a good idea to jot down interest rates, monthly payment amount and due dates. This can help you ponder on repayment strategies such as debt consolidation to make it easier to pay all of them back.

Try stress downloading

This is one strategy in managing financial stress and is a lot like the first tip. Downloading your stress simply means acknowledging the problem. You do this by writing everything down. In a way, it releases your anxieties and worries and lets them out of your heart and mind. This is as simple as writing things down.

When you write things down, you are able to visualize it better. You can write all your debt obligations, financial worries, and even how they make you feel. This is a good way to try and stop stressing over money. Once you are able to visualize the problem and what it does to you, you can now think of ways on how to proceed.

Create a plan

Once you have a concrete idea what problems are stressing you out, the next step is to craft a plan in solving your problems. This is another challenging part of the whole process since you need to dig deep and make some changes in the way you handle your finances. You might even need to make some sacrifices along the way.

If your financial stress comes from multiple credit card debt, you need to make some changes with the way you use your card. If you are an impulsive buyer, you have to make sure you do not bring your credit cards when going out. Try not to save credit card details on your computer as well. This makes it harder for you to shop online.

You can also consider repayment programs such as debt consolidation to help you manage your payments. If you have a lot of credit card debt, you can stop stressing over money and payment if you consolidate your payments. This program will let you combine your payments under one account. As such, you only worry about one payment amount, one due date, and even one interest rate.

Accept that some goals may be out of reach

Once you list down all the financial items that give you stress and put a plan together, you will need to accept some hard truths. There could be some financial goals you have set up early on which might not be reachable at present. If your plan was to pay off your mortgage in 15 years, some financial problems could force you to do it longer than that. It is also possible that your retirement age might have to be adjusted with your current finances.

One of the things you need to do to stop stressing over money is to accept that there will be things outside your control. Do not try and beat yourself up or worse, put your health at risk just to reach your goals. You can always make new plans, adjust your targets and try to work with what you have. If you try and bend over backward just to reach your goals, you might end up sacrificing a lot more.

Look for help

There is nothing wrong with trying to look for help when you know that you need it. For one, there are financial advisers and professionals who can be of help. They can consider your unique financial situation and explain your options. You need to remember that there is no one blanket solution for all types of problems. This is because there are no two cases that are exactly the same. These professionals can assess your situation and provide possible programs for you to consider.

There are a lot of financial problems in life but there are things you can look into to help you stop stressing over money. It does not mean that you will stop thinking about your finances and pack up and be a hermit in the woods. The idea is to help you manage it better and put your finances on the right track.

Smart Wedding Tips To Keep You Away From Debt

Smart Wedding Tips To Keep You Away From DebtAs you plan to spend the rest of your lives with that one person you love and start planning for the big day, there are a number of smart wedding tips you can look into. It may not sound romantic thinking about your expenses and how to lower it down during your wedding. But you need to understand that life is not always a bed of roses. Your finances will play a big part in your life together as a couple. How you manage your expenses at the wedding is a good try on doing your finances as a couple.

Wedding often come with a big price tag as couples and their families often expect a big wedding. For some couples, no expense is spared when it comes to wedding items such as entertainment, food, flowers, and even invitations. Some couples would even have an expensive honeymoon to cap off their wedding and to start their journey as husband and wife.

The Express UK shared that the most recent royal wedding of Meghan Markle and Prince Harry was estimated to be at £32 million. This is about $42 million and is a lot of money for any couple to use for a wedding. Of course, they are an exception because they are not just any ordinary people and being part of the royal family does have its perks.

For any couple, royal family or not, a wedding is a magical time for any couple. It signifies love for each other that they are willing to profess that love in front of family and friends. This decision comes with a hefty price tag and financial stress that is why it is best to look at smart wedding tips to manage the cost. Weddings are a balancing act between a time of your life to a fund depleting event. Here are a few tips to help you lower your expenses without sacrificing a beautiful wedding.

Plan it ahead

People who are in love tend to rush into things but a wedding should not be one of them. To make a wedding successful, you need to have time to plan for it. As a couple, one of the first things you need to decide on would be the date of your wedding. This is one of the biggest decisions you have to make as far as your wedding is concerned.

According to Sound Division, June is the most popular month for weddings. A lot of people get married during the summer when the sun is out. Some prefer other dates for sentimental reasons such as birthdays, anniversaries, or even a specific holidays. The next big decision you need to make would be the venue.

You need to lock in the date with a specific venue along with suppliers for your wedding. One of the smart wedding tips is to ask the venue who their accredited suppliers are to make things a lot easier and faster. These suppliers from food to flowers would already have an idea on the layout of the venue and how best to provide you with what you need.

In all these, you have to keep tabs on all items. Have an itemized expense on everything so you can quickly see the total expense. It also gives you the chance to pinpoint where you are spending the most so you can make adjustments if needed. If the flowers are too expensive you can talk to the supplier and find a way to lower it down.

Have a realistic guest list

This is one of the biggest variables when it comes to your wedding. Believe it or not, some couples even fight over their guest list before the wedding. You might not agree on who to invite and how many but you just have to go back to your budget. Try to compromise so you get to invite as many as you can to your wedding.

One of the smart wedding tips you can do when it comes to guests is to have a separate list. With separate lists, you then sit down and talk about who gets to go or not. If you have common friends then you would have a lot of people in common on your list. Relatives would come next and it is best to invite those whom you have a close relation to.

Know your priorities

This is important when it comes to weddings because it tells you which part of the wedding you want to focus on. This is very helpful especially when you have a tight budget. If your priority is food, then think of cutting down on other items such as decor and flowers so you can focus on what you can offer your guests. If the drinks are important for you, maybe cut down on the flowers.

The reason why this is one of the smart wedding tips is that it teaches you to focus on what is important for you on your special day. As you try and make it as memorable as possible, you want to have fun too on your wedding day as well. If you just try to keep everything about your guests, your special day will just go as one big blur.

DIY can be your worst enemy

There are a lot of couples who think they can DIY some areas of their wedding day. Some believe they can create a one-of-a-kind wedding invitation when they do it themselves. A few of them think that their center table will pop out if they create it on their own. There are even some people who try to create their own giveaways for their guests.

There is nothing wrong with being involved with your wedding preparations but you need to know where you need to draw the line. A lot of the problems start when you try to DIY a part of your preparations has to do with time. You may start off with a lot of time on your hands but as you attend to other areas of your wedding, you might not have enough to finish your DIY project.

Once this happens, you could end up paying for what you tried to start in the first place. If you did not finish all the personalized invitations, you might just have to buy them. The same thing with other areas of your wedding you tried to DIY. The less time you have to source it, the more expensive they can become and it this defeats your initial idea of saving some money with your wedding budget.

Hire a short-term wedding planner

Another one of the wedding tips you need to look into for your special day is to hire a short-term planner to help you finish off what you have started. You can save a lot if you plan and organize things on your own for the first few parts. However, you might want to consider handing the event over to a professional planner. Doing so will not only help you save money but it gives you the chance to enjoy your special day.

There are a lot of smart wedding tips you can look at to help you save costs on your special day all while making it a special occasion.