Smart Money Tips that Will Help You Out in Your Old Age

Wherever you are right now in your financial journey, you can make positive changes with your money habits. Check out these smart tips to save and grow your money so you can live your retirement life to the fullest.

Prioritize Paying off Your Debt

Living without debt is financially liberating. When you reach 50 or 60, you’re supposed to be enjoying the fruits of your labor—pension, savings, and other benefits and not paying off your mortgage or your car loan. If you can speed up paying your debts, do it. This could mean paying more than your monthly dues (anything in excess of the monthly repayment goes to the loan capital). Your goal is to eliminate big loans before retirement. If you have multiple loans, see if you can consolidate them.

Whatever your retirement goals are, one thing is for sure. You need money.

It’s okay to take personal loans during retirement, such as payday loans to cover important expenses like medications and home repairs. But at least you won’t get caught up with having so many debts to settle.

Master the 20/30/50 Rule

Many people struggle with saving money despite having a really high income. Why? Simple. They spend more than their means. If you’re guilty of this habit, Senator Elizabeth Warren recommends the 20/30/50 budgeting technique. The basic rule is to divide your after-tax income to three things: needs (50%), wants (30%), and savings (20%).

Needs are the bills you need to pay (mortgage, electricity, etc.) as well as the expenses necessary for your survival—food, gas, health care, and so on. Wants are the expenses that are not absolutely essential, such as your subscription to Netflix, the latest iPhone, an ultra-high-speed Internet, or a luxury car over a more economical vehicle.

Aim to allocate 20% of your income to your savings and investment plans. This could be in the form of adding money to your emergency fund, making IRA contributions, or investing in the stock market.

Diversify Your Investments

You don’t put all your eggs in one basket, so they say. Make sure you’re not investing all your money in a single account or investment type. ...

Keep reading on Quick and Dirty Tips