earn-money-retirement

Fun Ways for Retirees to Continue Earning Money

Several individuals look forward to the day when they will no longer have to spend most of their waking hours at the office anymore. However, many of them don’t realize that their dreams of retirement could involve seemingly endless days of boredom because of no longer having a regular schedule.

If you’re still fit and healthy and want to keep your body and mind active after retiring from your 40 hour a week position, the ideas below can help you get started with alleviating the boredom and earning a little cash on the side at the same time.

Sell any Unique Skills you may have

If you’re naturally good at something such as playing a musical instrument, sewing or gardening, you could use this knowledge to your advantage and earn a little cash while doing so. 

Giving sewing lessons or even performing basic clothing alterations is not something that everyone can do, and using your gardening expertise can involve teaching others how to grow food and other plants or you can even sell cuttings from existing plants.

These days, many parents are willing to pay excellent hourly rates for their children to enjoy private music lessons as well.

Drive for Uber or Lyft

These two companies are among the fastest growing in the world at the moment because they enable individuals to take advantage of ride sharing. As such, you can earn quite a decent chunk of cash by transporting passengers to various destinations in and around your city. 

Not only will you be able to earn a little spending money while collecting and dropping passengers off; anyone who works for these companies can sometimes obtain excellent deals on different products and services like phone plans, vehicle maintenance, gas and even health insurance in some cases.

Consider Starting a Blog

Once you’ve retired, you’ll have an excellent opportunity to share your expertise and knowledge with other individuals, and the best way in which you can do this is to set up a blog. 

If you were working in any form of customer service field, you could use your blog to share anecdotes or even provide information regarding how you used to deal with and resolve specific situations or problems. Money can be earned on your blog through the placement of relevant advertising once you’ve built up a decently sized reader base. If your blog attracts a number of readers, you may even be provided with opportunities to review some fantastic products over time. 

Although the point of going on retirement is to spend some time doing the things you truly enjoy, the reality is that many retirees underestimate the amount of money they will need to live on as well as the number of hours in each day that will need to be filled. 

While the above-mentioned ideas may not seem spectacular, they can provide you with a basic starting point regarding keeping yourself busy and happy during your golden years. 

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retirement-expenses

Expenses that could Diminish Totally after Retiring

Many individuals stress about being able to save enough money for retirement, which is understandable – especially as living costs continue to escalate at such alarming rates. Although the cost of many items will increase further over time, the good news is that there are a few expenses that could diminish or even disappear totally once you’re no longer putting in 40 hour weeks at the office.

Some Forms of Tax

While you’re receiving paychecks, you’re having just over 6% of your earnings deducted for Social Security and approximately 1.5% to support Medicare, which amounts to a chunk of almost 8%. Once your paychecks come to an end though, so will your contributions to these two sources. However, keep in mind that taxes will need to be paid on any Social Security benefit payments you receive.

Transport Expenses

The cost of driving or taking public transport to and from the office certainly adds up over time. Families where both parents have their own vehicles have to cover the cost of gas, maintenance, licensing and insurance for them. Research has revealed that it can cot as much as $10,000 per year to own a vehicle.

Once you’ve retired, chances are that you’ll be able to get by with just one vehicle, meaning that the costs mentioned above could be reduced substantially.

Eating Out

Most working families have extremely busy schedules, resulting in a number of meals being eaten at restaurants or fast food outlets because it’s easier than spending a lot of time preparing food at home. Average American families spend between $200 and $300 per month on fast food and restaurant meals per month. 

When you no longer have to go to the office every day, you may find that you’ll enjoy taking your time to prepare tasty meals at home – which will save hundreds of dollars over the course of a year.

Clothing

Dressing the part when working in the corporate world is often quite costly, especially if formal attire is required. In addition, dry cleaning can also set you back a few hundred dollars per year. After retiring though, you’ll be able to dress more comfortably – and of course more affordably because you’ll no longer be compelled to purchase specific types of clothing.

Retirement Account Contributions

After stopping work, you won’t have to continue contributing to your retirement accounts any longer either. All the years of saving wherever possible will finally pay off and you’ll be able to truly enjoy your golden years.

While you’ll now be able to hold on to more of the money that’s now coming in, it’s crucial that you continue to budget accordingly. This will help ensure that you’re able to continue covering the cost of living without going short anywhere. 

Although it’s stressful ensuring that you’re saving enough for retirement, it’s a comfort to know that some of your expenses will reduce or even disappear during this time of your life. If you would like to learn more about saving for retirement in the best way possible, contact us today. 

 

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bad-credit-card-habits

Break These Bad Credit Card Habits

Bad credit card habits not only cause chaos with your credit score; over time, they will result in you accumulating more debt than you can afford to comfortably repay. Your long-term financial plans can also be derailed completely, which is why it’s essential that you eliminate these bad habits right away.

Failing to Inspect Credit Card Statements

While it may seem like nothing short of the most boring chore on earth to check your credit card statements thoroughly, the truth is that perusing each line item on them can help prevent any fraudulent purchases from being added without your knowledge. 

If you notice any charges that you haven’t made, you’ll need to notify your credit card provider immediately so that the necessary actions can be taken to reverse them. Another aspect you should always check is your credit limit – over time, your bank can change this without notifying you and this can result in some hefty fees being charged if you exceed your limit.

Only Paying Minimum Amounts

Credit card companies provide a convenient feature in that they only require you to repay a small amount of your outstanding balance each month. While this may seem handy, you will not ever be able to repay your card in full if only minimum require amounts are being applied. In addition, you’ll be paying hefty amounts of interest on the outstanding balance.

When the time comes to make repayments, always ensure that you pay as much as you possibly can against the outstanding balance. Over time, you’ll save thousands of dollars in interest.

Withdrawing Cash

Taking out a cash advance is most likely the costliest type of credit card transaction. Not only will you pay a higher interest rate on the amount you’ve withdrawn; the grace period for interest being charged with normal transactions is usually voided and an additional cash advance fee will normally be charged as well.

Purchasing Unnecessary items

This is another bad habit that should be stopped immediately because it results in you accumulating debt that you might not be able to repay at a later stage. 

If there are items you want, but cannot afford to pay for in full, it’s best to save up instead of placing these purchases on a credit card. You will feel a tremendous sense of satisfaction in knowing that you own the item from the start instead of only truly owning it after repaying your credit card balance.

Making Late Payments

These days, it’s possible to schedule payments so that they are sent to your credit card provider on time each month – meaning that there is literally no excuse for making late payments anymore. 

Late payments not only affect your credit score; over time, additional penalty fees and interest will be applied to your credit card as well. Again, this will result in you wasting money on unnecessary late payment fees. 

Exercising good credit card habits such as never carrying a balance until such time as interest is charged and ensuring that repayments are always made on time will go a long way in helping to build an excellent credit score – while allowing you to keep more of your hard earned cash because of not paying interest. 

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spending-money-wisely

5 Things you should Never Waste Money On

When saving to build your emergency fund, retirement account or even that vacation you’ve been dreaming about, you’ll have to be prepared to make a few lifestyle and financial adjustments along the way. Below are some products and services that you should never even consider spending your hard earned money on.

Brand New Cars, trucks or SUVs

As soon as a new vehicle is driven off the showroom floor, it loses as much as 30% of its value immediately. Instead of purchasing a brand new vehicle, consider searching for those that are between one and five years old. This will prevent you from losing a sizeable chunk of your hard earned cash, while still being able to obtain a vehicle in good condition.

Lending Money to Friends and Family

If you’re fortunate enough to have a little extra cash on hand from time to time, chances are that you’ve been approached by friends or family members with regards to lending them money. Although it may be tempting to provide them with financial assistance, you not only stand an extremely strong chance of never getting those funds back; you could find yourself going short in your own budget at a later stage.

Interest on Store and Credit Cards

Many working people consider it normal to be carrying permanent balances on store and credit cards. This results in you having less money to spend each month because of the installments that need to be paid on these cards, and over time, you will end up paying up to three times the original price of any items you purchased with these cards in the form of interest and finance charges. Rather save up for any large purchases, as this will save you thousands of dollars over time.

Paying Full Price for Anything

These days, a number of companies are willing to provide some form of discount on their products and services. However, these special offers may not always be known to the general public – which is why you should always ask whether any discounts or specials would be applicable when making a purchase. This strategy usually works best when purchasing items like appliances or even vacation packages. As the saying goes, “If you don’t ask, you don’t get.”

Anything that Seems too Good to be True

Each year, thousands of hardworking individuals end up being scammed out of their money by conmen who promise to provide them with ‘double returns on their investments’ and other similar schemes. This can seem like a financial lifeline for anyone who is desperate to ensure that they have enough money saved to cover emergencies or other essential expenses. 

As such, you should only ever work with registered and licensed financial advisors or brokers when looking to invest your money.

If you would like to learn more about how you can reduce your expenses or invest more money for future use, get in touch with our advisors today. 

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