Growing older is something that everyone must experience in life. Once you reach the age of being considered a senior citizen, it can be hard to find jobs. You also have the risk of suffering from numerous health conditions that are a part of growing old. Not having a sufficient amount of money saved up so you can retire can put you in a bad situation as a senior citizen, which is why it is a good idea to put a retirement plan in place. Take a look at this article to find out how a financial planning consultant from a company like Goodrum Financial can help you plan your retirement.
1. Discuss the Type of Lifestyle You Want During Retirement
It is important for you to determine the type of lifestyle you want to live during your retirement days. Having to downsize or move into a home that isn't what you are used to living in can make your retirement years uncomfortable. A financial planner will want to discuss the type of lifestyle that you want to live to give him or her a general idea of how much money should be saved. If there isn't a solid plan in place for saving up money, you will end up will a small amount to retire on, or possibly none at all. A professional will make sure you are able to save money each time that you get a paycheck, depending on your income.
2. Determine How Much Monthly Expendable Income You Have
One of the things that a financial planner will do is determine how much expendable income you are left with on a monthly basis. Expendable income is basically money that you don't have to use on your daily living expenses. The reason why your expendable income is so important is because it will determine how much money you will be able to save for retirement each month. You can actually have a large amount of expendable money if you don't buy a lot of stuff that you don't really need to survive, such a designer clothes and expensive meals at restaurants. A planner will teach you ways to save based on your current spending habits.
3. Consider How Your Debts Should Be Handled
When you speak to a financial planning consultant, all of your debts will be discussed. He or she will try to help you sort your debts out so you can free up some of your money. For example, if you only have a few debts that you don't pay on time, the consultant might recommend consolidating them into one payment. If you currently owe a substantial amount of debts, he or she might recommend that you file for bankruptcy.