Mukesh had been a bank employee almost all his life and this gave him an edge. He was familiar with various schemes and plans. Therefore, he started saving up and investing in retirement plans from an early age. This proved to be a rational decision when both of his sons settled in America after they got married and left Mukesh behind, alone. The retirement plan he had invested in and the various methods he used to manage his finances allowed him to be self independent even at an old age.

Retirement is inevitable. But, planning for your retirement is easy when you have a stable income every month. But unfortunately, when people finally retire, they are usually left with little or no savings. If you desire to live happily and peacefully, then planning for your retirement and knowing how to manage your finances is paramount.

Maximizing returns and minimizing risks is the gist of the plans that you opt for. You have to take care of the different investments, income, pensions etc and that requires you to carefully scrutinize things. Here are some tips which you can follow for effective budgeting :

• Keep a fixed budget: Knowing exactly how much to spend can help you to refrain yourself from wasting money. Prepare a fixed budget for your groceries, medicines, food and other expenditures and abide by it loyally. Spending within a limit can help you save money even after you retire.

• Delay in withdrawing your social security: Social security benefits begin at the age of 62. But there’s a trap. The more you delay in drawing it out, the more benefits you receive. Your social security benefits increase by 8% every year. You don’t withdraw it until you reach the age 70 to enjoy the maximum benefits that you can receive by waiting.

• Have a high healthcare budget: Health concerns increase as you age. That is why having good health insurance should be your top priority. This would help you later in case of medical emergencies and cover your medical expenses. You should remember to review your health insurance plans periodically. You can also opt for a senior citizen health insurance policy that is especially designed to ease your troubles.

• Look for fixed income resources: The need to work never really goes away. Even after you retire, having a fixed income is a great idea. Take up a part-time job or freelance work to ensure guaranteed income.

• Reduce your debts and taxes: In order to save money, you first need to pay off the debts that you owe, since the interest levied on it will soon hollow out your bank account. Pay off the loans and credit card bills as soon as you can.

Financial planning never ceases to exist. Planning for retirement is a long and tiring process, but that doesn’t mean that you cannot do it. The earlier you start preparing and saving for it, say at the age 30, the more comfortable you are going to be in your late years.

So, what are you waiting for? Get in touch with me to know more about retirement plans. I will be happy to assist in the best possible way.