Half century is a key milestone in one’s life no matter how one looks at it. For those who have lived a balanced life saving for retirement, it’s a time to reflect if the savings accumulated till date would suffice for future needs. For those who feel left on the sidelines with not enough savings, it’s time to catch up to the extent possible. Though you can’t expect to match someone who started planning in their 30s, your cause is far from lost. Here are 10 things you can do
1. Realize time is not on your side
At 50, the most important thing that one needs to realize is that time is not on your side and making mistakes or being callous with money is simply not Ok when it comes to financial planning
2. Focus on Health for self / family
At 50 while you may be young in my mind, law of nature dictates that you take care of your health. Illness in any form could throw you off course no matter how well you have planned your finances. Not only can it lead to you losing out on your wages, but also add to your expenses in the form of medical bills. Same applies for your dependents.
3. Focused Savings
To make up for lost time, act like a 50-year-old and think like a 20-year-old. That means saving and protecting the money you have, as well as using technology, creating additional income streams, and cutting spending.
4. Adapt to technology
e-Payments via Credit Cards or e-Wallets can be rewarding in terms of cashbacks and other types of loyalty rewards. Moving to e-Papers from actually purchasing newspapers can help save money. Adapting to such new age technologies and many others can help save a lot of money which can be saved for future.
5. Track Spends using Technology
Use spend tracking apps to track and cut down on unwanted wasteful spend.
6. Leverage your skills
50 autumns later, you have all the experience on your side to leverage and monetize your skills. All it requires is a first step. Be open to such an idea and the same can turn out to be a wonderful avenue for the extra bucks that u need.
7. Evaluation of current liquid assets & investments
Evaluate your current liquid assets / investments and decide if you are getting the right returns. If required seek professional guidance to ensure you maximize your returns. Every penny spent on such consultancy would be rewarding.
8. Use your illiquid assets as resources
Liquid assets like extra rooms, houses, stores, vehicles, land etc. can be used as resources to earn extra cash in terms of rental income. In case you have gold savings, there are ways to earn interest on the same. Letting these assets lie idle is certainly not in your interest.
9. Choose your banks wisely
Choosing your bank wisely helps you earn that extra 2-3% in terms of interest income. As they say, every drop counts.
10. Strategic Debt Reduction
Strategic reduction of Debt is critical once one crosses 50. One should identify debt where interests are on the higher side and strike them off even at the cost of doing away with certain savings. E.g. if one has 100K in liquid assets earning a fixed interest income of 4% per year in savings account, one should use this 100K to pay off an equivalent debt incurring interest of 14%. This would mean a net savings of 10K per year on interest outgo, which can again be strategically invested.