Age is always uncontrollable but the way your activities and wish to live life at its fullest is always in your control. As the number of age increases the power to push limits decreases and this directly affects your financial planning. The more you will read about some tips which experts usually recommend for stronger financial planning even in old age the ore you will stay comfortable. There is no perfect age to adopt all the right it is always about being better and protected from some awful happenings. Let’s see some of the personal finance tips shared by Lyle Advisors for those aged couples out there.
Lyle Advisors Personal Finance Tips
#1 Don’t keep big Financial savings
Generally, people save for their entire life so that they could enjoy a better life when they get old. When they get old then they get dependent on that amount and feel helpless. The financial education needs to be changed and this amount should be invested in safe places where the interest is less. This small amount is far better than your plans to depend upon that amount. Talk to people who understand the way by which you can get maximum returns and with minimum or no efforts. Some of the examples for such kind of investments are mutual funds, FDs and various other schemes.
#2 Don’t lend the amount of money from money
If you are earning good and the return of your investments is good and you feel like lending some money from the market then that is fine but if couples are not having good retirement plans nor the amount they earn is good then try not to lend money from the market. The reason being is the interest in the amount that you will lend from the market. This amount will somehow attack your earning plus you will always be pressurized to return that amount otherwise you will keep going deep into the world of interest. An alternative for this could be if you can lend amount from your relatives and keep returning slowly then that would be beneficial. As in this case you need not worry about the interest
This is the aspect upon which the entire world acts and if your financial planning misses this then you are at the back foot. Every month both of you should plan the amount that you guys are going to spend on different items. If the amount anyhow crosses that budget then try to figure out whether the planning or the expense has been increased. To be careful of the budget you can download applications in your phone where you both can add and subtract the amount from the budget. Make sure that the application supports real-time updation of the input data.
#4 Get the amount separated for urgency
There are times when you are in urgent need of money and that time you seek for some bank to lend you money. Banks usually lend money at a good interest rate hence decreasing the efficiency of your financial planning. To overcome such situations you can always try to save some part of your regular income for different purposes.
At old age, if it is x amount that you are earning every month then try to save 5 percent of this amount in a different account and 10 percent of the amount in a different one. The purpose of both the bank accounts could be different but in case of urgency this amount could be a big help for you.
#5 Learn and trust each other
There could be many aspects where your partner is better than you and in old age, you guys could be a perfect support for each other. You just need to listen to your partner about the financial planning and you guys should have a soft side to grasp each thing. Trust is the most important point on the other hand and this is because at the time when you guys have to walk together then how can your acceptance or doubt in someone be nice? Of course, that’s not and to stay protected from such situations try to talk more and more so that you can think together for each other.
These are some points upon which you can rely completely and can help your financial planning to stay strong even if you are growing old.