{"id":248,"date":"2018-11-28T04:08:02","date_gmt":"2018-11-28T04:08:02","guid":{"rendered":"http:\/\/www.personalfinanceafterfifty.com\/retirementfinancialmanagement\/?p=248"},"modified":"2018-11-28T04:08:02","modified_gmt":"2018-11-28T04:08:02","slug":"personal-finance-after-50-spend-less-save-more","status":"publish","type":"post","link":"http:\/\/www.personalfinanceafterfifty.com\/retirementfinancialmanagement\/uncategorized\/personal-finance-after-50-spend-less-save-more\/","title":{"rendered":"Personal Finance After 50 – Spend Less : Save More"},"content":{"rendered":"

We have been discussing that one must take the minimum of debt and loan- it may be credit card balance, car loan, education loan or even mortgage of your home. But taking loan sometime becomes imperative especially in case of high value purchases. But the loan amount should be such which can be repaid in a period of ten years or before you retire, whichever is earlier. To achieve this, one must make a monthly Budget and try to control the expenses, so that you can save enough to repay your loan and also invest for your retired life. Unfortunately , most people don\u2019t plan for their future and spend everything they make. When you are young, you could take that liberty with your money, but at the advanced age of 50 or so, you cannot ignore the fact that you are going to retire soon and you have to prepare for your comfortable retired life of 20- 25 years<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0<\/span><\/span>Save Money And Pay- off Debt<\/b><\/span> : –<\/span><\/p>\n

\u00a0\u00a0Telling people how and where to spend their money is a risky undertaking because most people like to spend money. But there\u2019s a world of difference between spending money carelessly and spending money wisely. Your savings dwindle, debts may accumulate and you can\u2019t achieve your financial and personal goals. <\/span>The four principles to control your spending <\/b>are: –<\/span><\/p>\n

\u00a0\u00a0(i) Living within your means.<\/span><\/p>\n

\u00a0\u00a0(ii) Finding the best value i.e. evaluate the cost of a product or service before purchasing.<\/span><\/p>\n

\u00a0\u00a0(iii) Cutting excess spending like wasting money on branded products\/ consumer items or purchase unnecessary items. And<\/span><\/p>\n

\u00a0\u00a0(iv) Rejecting consumer credit \u00a0and purchases to be reduced on credit cards to the bare minimum.<\/span><\/p>\n

\u00a0 50 – 20 – 30 Rule\u00a0\u00a0<\/strong><\/span><\/p>\n

\u00a0\u00a0If you are struggling to save money and pay off debt, the 50 – 20 – 30 rule can help you budget in accordance with your financial goals. This simple rule provides flexibility, whether you want to pay- off debt. Save , invest or all three. The rule splits your after- tax , take- home pay into three buckets : –<\/span><\/p>\n

\u00a0\u00a0\u201c Fifty percent is for Needs, thirty percent is for wants twenty percent is for saving \u201c. The breakdown is as under :-<\/span><\/p>\n