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Personal Money Management
By the time you are hitting middle age, you need to have your personal money management under control. Not just your spending, but your saving as well.You are staring down the final push to retirement and your personal money management will make the difference between enjoying that time and struggling through it. You need a plan. Here are some of the basics: Set a
personal budget.
This is really basic family money management, but so few people actually do it! You need to know where your money is going so you can understand why it's gone! Start with the big monthly bills and work your way down to daily and weekly spend on coffees and lunches out. It adds up pretty quickly. You can just write it down on a small pad you carry with you, or you can use a high tech version with
Spendtracker
which is a very nifty little device. Only once you know where it's going will you be able to redirect your spending to something more meaningful. This will be vital if you need to live on a fixed budget in etirement. Eliminate debt. Consolidate your debts and get them under control. In terms of personal money management, the money you have used on your credit card is the most expensive money in the world, if you don't pay the card off quickly. Personal loan interest rates are tiny compared to credit card interest rates. If you can't manage your spending on credit, put the cards in a container of water and put it in the freezer. It doesn't hurt the card, but it takes it out of easy reach. Set some financial goals. Do you plan for your spending? Holidays? New car? A bit of cosmetic surgery? There are several very effective ways to manage this. Set some goals, then really work at sticking with them. The dollars add up pretty quickly once you start getting the hang of it.Talk to a retirement planner about what you will need as an income and how to get there from here. It is generally agreed that if you own where you live, you can have a pretty good retirement on $30,000 per year, as a single and $50,000 as a couple. Go to someone reputable and talk to your friends about what they are doing, then work out what you are doing! Where will you live? What role will your house or property play in your future? Are you planning for it to fund your retirement? Downsizing? What sort of amenities do you need to be close to? Make sure your will is up to date. This is a real fundamental of family money management. If the worst happens, this will at least ensure your family doesn't tear itself apart over the things you've left behind.Most people spend more time planning their summer holiday than they do planning their personal money management into retirement. It's just too important to leave unplanned. The sooner you start, the better the result will be. Read more about
money
and
money management tips
to get started.
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