Priorities change through a lifetime. It is easy in your twenties to see a life ahead and little reason to make any provision for retirement. Those people embarking on a career after college are likely to have a student loan to pay off, perhaps a new apartment in need of furnishing and even the deposit on a new automobile. There is always something! In the face of these calls on your finance it may be very difficult to think about retirement. As the years go by there can be other calls on your finance, ranging from the need to build up a deposit to buy real estate to the costs of raising a family. It can appear that there is never any time to put money away for later years. However the answer to the question about when it is important to save for retirement is a short three letter word; ’now’ whatever your age. It is never too soon.
No one is suggesting it is easy to always be in control of your finances. During the years of recession it was even more difficult. However there is little chance of having a sound financial base if you do not look at your income and expenditure and think about the competing demands on your money. It is certainly tempting to prioritize immediate demands rather than put any money aside but getting into the habit of saving should be everyone’s aim.
Difficulties of Saving
It is certainly difficult to save anything in the early years of working. Ten years on it remains easy to make excuses not to save. Certainly the financial environment in the last few years did not help. However the environment has improved and the jobs’ market has improved. There is relative security though many people have a damaged credit score in need of repair. If this is you then that repair must be a priority as part of an overall strategy to develop financial stability and with it provision for retirement.
Create a Surplus
You should look at your regular income and expenditure with a view to seeing if there is a surplus or whether one can be created; that surplus will be useful in providing for retirement or creating an emergency fund. One of the problems that many people have faced and still face is debt on their credit cards, and at the end of every month the interest rate applied to that debt is high, much higher than the rates charged on personal loans. Even though some financial institutions are extremely reluctant to lend to those with a poor credit score, modern day online lenders take a far more positive view of loan applications. Those with a regular income that can demonstrate their ability to repay a loan over a fixed term are likely to be approved.
Any balance on a credit card that is paid off with a personal loan will have the consequence of reducing monthly expenditure. The resulting surplus should be used wisely for the future. If you see your situation here and have the self-discipline not to build up a balance on any credit card once again you can actually borrow to improve your long term financial future.
It Makes Sense
Why is it that online lenders are happy to provide a lifeline to those who have defaulted on financial obligations in the past? Well, it is a combination of things. They include the belief that the recession followed a period of complacency in society as a whole. The lesson has been learnt. Equally there is profit to be made by lending with perhaps a slightly higher rate of interest charged because of the slightly higher risk involved.
The Internet is the best place for anyone to go for information. In the financial sector you can look at what is currently on offer and make decisions in your own time. There is no ‘hard sell’ and good websites will be thorough in the information regarding terms and conditions and APR to be applied to specific loans. Lenders provide a quick and easy application process, completely online, and funds usually with one business day of application if the lenders can see the repayments are affordable. Whatever your age this service is available to help you plan for your future.