The Best Debt Management Tips to Protect Your RetirementJul 21, 2017
Canadian homeowners of all ages are gearing up for home renovations this year. Exciting as they may be, renovations can come with a steep price tag, and many homeowners anticipate taking on debt to cover some of the costs. Unfortunately, to pay for their renos, some homeowners are neglecting debt management and saving for retirement.
Planning for a financially comfortable retirement is a unique process for everyone. The costs of retirement may look very different from person to person. But in order to have a financially secure retirement, you’ll want to focus on debt management, before and during those golden years.
These blogs can help you with debt before retirement
Here are a few blogs that highlight some important retirement topics, debt management tips and advice on reaching your retirement goals.
Control your spending now
One debt management strategy to put in place is prioritizing needs over wants. Before you buy anything, ask yourself “Is this something I can live without?”
The costs of retirement can be high, and unexpected costs from medical expenses, disability, rising interest rates, or job loss could all make it more difficult to save for retirement. That’s why considering what you need versus what you want, and adjusting your spending accordingly, can help you keep your retirement on track.
Talk about your debt
Paying down debt can be a slow and daunting process. There are a lot of emotions attached to money, and debt specifically. If you feel overwhelmed, guilty, or fearful, it may be more difficult to see the progress you’re making. Talking about your debt and your financial plans with others can help.
Speaking to friends or family about your finances can reduce your personal stress and anxiety. They can also help you stay accountable as you work toward your debt management goals.
A debt help professional, like a Licensed Insolvency Trustee (LIT), could be another good person to talk to. An LIT will provide you with several debt management options that can help you pay down debt before retirement.
Plan, plan, and plan some more
Whether your retirement is five years or 50 years away, planning is important.
All sorts of life events, like weddings, expanding your family, renovating your home, or even a divorce or illness, can affect your long-term plans, including your retirement. Here’s how you can balance debt repayment with the rest of your life.
Don’t let life events impact your retirement plans negatively. Make debt management a priority now, and balance your short-term plans with your retirement goals.
How are you managing your debt before retirement? Tell us on Twitter. #DebtSolutions #HomeReno