 |
|
|
|
|
|
|
 |
 |
|
|
|
Local 2409 Microsite
News
Retirees' Committee Report9/13/2007
Most retirees depend on a regular retirement check and social security to provide them with a comfortable living. But some require more, such as a part time job or varying returns on investments to make ends meet. If you are dealing with a fluctuating income, monthly budgeting can be difficult, and long term planning might seem impossible. Here are several common mistakes and some ideas on how to overcome them:
*
Not anticipating your cash flow patterns. Try keeping your monthly loan obligations as low as possible. (i.e. If you could pay off a car loan in three years, opt for the five year loan instead. Most months just pay the minimum, but in high cash flow months, make double or triple payments to minimize interest over the life of the loan.)
*
Failing to replenish your emergency fund. Keep 12 months worth of expenses in a high-interest savings account. If you must tap into this money, create a three-month repayment plan, as if it were a loan from the bank and then repay the account on schedule.
*
Paying for expensive discretionary purchases with money you don't have. For such things as a new sofa or a vacation use "zero-based budgeting". Figure out how much it will cost, then save a little each month until you can pay for it in cash. For essentials use "zero interest" loans such as a cash advance on a credit card that charges no interest for one year. Then pay off the loan in twelve interest-free installments.
*
Not providing for your long term needs. If you wait until the end of each month to "discover" how much money is left over, you will never meet your goals for savings, etc. Shift preset amounts at the start of the month to various accounts to cover such things as taxes, mortgage, utilities, medicine, etc. Even if you don't pay these bills until the end of the month, it will prevent you from being tempted to overspend.
Older people are less worried about finances than younger people. 60% of people in their 70's say they aren't worried about coping financially in the future, compared with 57% of those in their 60's , 48% in their 50's, and 42% in their 40's. About 70% of people over age 60 say their standard of living in retirement is the same or better than it was while they worked. Only 29% say it is worse.
Respectfully submitted,
Brad Cecil, Chairman
|
|
|
 |
| | | | |
|
Last modified: 2/18/2010
Copyright 1996-2001, The International Association of Machinists and Aerospace Workers |
|
