How to Gain Back the Lost Years in Making Money
In the world of finance, time is money. Maybe the past 10 years have been a failure when it comes to managing money. How to make up for lost time?
1. Ask yourself how you spend
In order to increase your savings, there are two ways. One which advocates earning more money and the other cutting your spending. Smart people often do both. The problem is that people spend on impulse and feelings, not logical decisions. 0
2. Really plan your retirement age
Many people desire to retire early. But if you are willing to put in more years and put retirement on hold, this is good news. This means you are earning more money and saving much more for your future retirement. On the other hand, some people think it is too much to work for so long, especially with a job they do not like at all. This can be solved by finding a job you love. There are also people who work part-time even after they retire to supplement their income.
3. Utilize your house properties
The very house you have been living in for the past 20 or 30 years is your property. You have shed blood and sweat and tears for settling the mortgage loan. But what is the use when it is sitting duck there with you yourself being drained from savings?
An alternative is to sell your beloved house off and buy a cheaper home with the money. You can consider renting as well. Tax laws enable you to realize up to $250,000 in tax-free profit from the sale of your home ($500,000 if you are married).
Another solution is to do a reverse mortgage. This way, you get a monthly income check as you build a loan balance against the value of your home. This way, the loan is paid when your home is sold for good.
4. Let an existing hobby earn you money
Maybe you are good in cooking. Maybe you are great in persuasion. Over the years, even at retirement age, you may have some skills and experience that are very valuable. You could turn the table around by launching products or develop a good business plan. Things can be profitable this way. It is never too late to dream.
5. Get into investments that give you tax benefits
This can very well boost your rate of return for your investments, if you know your taxes. Know that some employers also offer free matching money. Also, the government has been known to offer tax credits for people who earn relatively low to moderate income who use their retirement accounts.
Maybe you belong to a rich family. There is a chance of inherited riches. But you should never gamble at this aspect 100%. Just so you know that you could be inheriting some amount of money in future to support your retirement.