Phoenix is known as the city where dreams come true. That’s why it is such a great place to call home. However, many people who live here can find themselves struggling financially once they reach retirement age. This is especially true of those who have not built their nest egg before retirement.
The good news is that this doesn’t have to happen. You can start building your nest egg now. If you are located in Phoenix, Bodie Murray from Northwestern Mutual is one of our Trusted contacts and an expert on financial planning. Use these tips to manage your finances on track for retirement.
Tips to stay on track for retirement if you are in the Phoenix area
- Build Your Retirement Fund Now!
If you don’t already have a retirement financial plan in place, you need to make sure you do so soon. A lot of people wait until their 50s to begin planning for retirement, but starting early is the best way to get ahead.
- Create a Budget
Creating a budget is not only beneficial to your financial situation, but it helps you understand what is happening in your life right now. By creating a budget you can identify how much money you spend each month and figure out exactly where it goes. Once you know where your money is going, you can better prioritize where you want to allocate it.
- Start Saving Early
When you retire, many people often find themselves short on funds. If you start saving while you work, this will allow you to begin building up your savings account right away. It’s never too late to save money, but if you wait until after retirement, then you may find yourself having to take out loans just to make ends meet. This could cause financial problems down the road, so it’s best to set aside money now instead of later.
- Find Retirement Income Sources
Once you have saved money, you should look into different ways to earn extra income. You might want to consider starting a side business like selling handmade goods online, or even looking into investing in rental properties. These two options can provide you with passive income, meaning you won’t have to do much other than manage them, and they both offer tax benefits at various levels.
- Plan Your Social Life
While retirement may seem like the perfect time to spend more time relaxing, planning social events can actually be quite enjoyable. Consider joining a book club or going to local concerts. Make sure, however, not to overdo it if you feel like you’re missing out on something else.
Keep moving forward with your retirement planning to create your financial security and reach financial goals
It can sometimes be hard to keep moving forward if you have not started saving early enough. But don’t worry! Bodie Murray from Northwestern Mutual can help you get on track in planning your retirement
After you’ve reached a level of security on having customized financial advice, you’ll still need to continue to move forward when you retire. Set up meetings with friends, go visit family members, and try to maintain a healthy lifestyle before and after retiring. Don’t forget about what you love, and remember to live each day to its fullest.