3 financial decisions that will make it harder to retire
The first costs to cut in preparation for retirement are the biggest: your debt, your housing, and your car.
If you choose to take on more debt, live in a house that stretches your budget, or drive a car you can’t afford, you could be compromising your ability to save — and retire when you want.
Even when it’s hard to picture your life in the future, you’ll be glad you started making changes in your spending and saving years before you had to.
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In a culture that prides itself on instant gratification, saving for retirement can feel like the opposite of living your best life in the here and now.
However, it’s important to keep in mind that your future self will thank you when you do save, even when it’s hard for you to picture your life decades in the future, says Sophia Bera, a certified financial planner at Gen Y Planning.
“Retirement should be one of your top financial priorities, along with paying off high interest rate debt and building up emergency savings,” she says. “These are the three key elements of creating a solid financial foundation. Without this foundation, it’s difficult to address other financial goals.”
Read more: 7 ways to make your post-retirement life easier if you want to quit your job in 10 years
With those three elements in mind, it’s also important to avoid making financial decisions now that could cause roadblocks to your future financial planning. Three of the biggest financial decisions you can make now that could make it harder to retire in the future are:
1. Taking on student loan debt later in life
That loan could be for you or for others — maybe for grad school, or to help your children with their education.
“Parents are giving …read more
Source:: Business Insider