I’ll be the first to tell you that I don’t agree with 100% of the article, but for those who don’t know where to start. This is as good a place as any.
In February 2011, The Consumer Report published an article that detailed 15 ways that you can protect yourself from running out of money, no matter what income level you were. I have listed a few below that I have found valuable. But, as always, never take one person’s word; read the entire article to formulate an opinion for yourself. Then let me know what you think!
Live below your means – Nothing kills a financial dream more than trying to get too much too quick. Live within or below your means now. This way, later, you can live the way you want to.
Keep a budget – As I’ve said before, living on a budget is not a 4 letter word. This is actually a smart thing to do. Tell your money what to do. Don’t let your money tell you what it will be doing.
Start saving Early – The earlier you start saving, the more you will have later. No matter how much income you have, if you put a little away over a long period, in the end, you will have a nice-sized cookie jar.
Diversify your holdings – Having all your eggs in one basket is not wise. Mix up your portfolio.
Pay off debt – Living a debt-free lifestyle (don’t borrow money and live on less than you make) will help you to afford the things that you need and the things that you want. The basic rule of accounting Let your assets outweigh your liabilities.
The law of 4% – Only withdraw 4% annually from your retirement (After you retire.) This way, you are not outpacing your retirement fund. This law assumes that you are earning interest on your money that is higher than 4%.
As stated earlier, these are only a few of the 15 steps detailed in the article. I urge you to continue your own research and discover the best methods that work well for you.
Corey Stokes 