Money!!!

Money- Thats what everyone is thinking most of the time... Especially more so recently :) Cost of living has soared like anything. Fuel, food and home prices are hiking at an amazing rate and I know for a fact that everyone is in some context thinking about how to make more money.

The main point here is not to think of how to make more money but really its all about how to save more without starving to death and without compromising the actual necessary quality of life.

I'm a avid reader of the Financial Sections. And every time I find any interesting article it acts like a wake up call for me. By interesting I mean articles on budgeting, savings, retirement plans etc etc. Budgeting and savings is not too much of an issue coz I have a Personal Reminder who does all the necessary reminding... I love to call her Mom :). She is really good with numbers and I personally think that she's gifted. I cannot stretch a dollar to buy things and save some of it. But she can. I have always aspired to be like her but I don't think I've succeeded much.

Anyways what I want to highlight here is - Retirement!!! When I first read about this my first thought was that I'm still very young to be seriously thinking about it. But then I really started re-visiting the thoughts and started reading more and more. For someone who is like me - who does not believe in any large inheritances (no rich benefactor waiting in the wings) and knows the chances of winning any lottery (near to zero) it is like a jolt out of the blue. Really it is worthwhile to at least think about it. I've summarized the gist of it... To me it makes sense.

20 to 29

You're young; you're starting your career; you're broke.

1. Start your super at work. In Fiji, it’s a legal requirement to have SUPER.
2. You can tap your Super for a first-time home purchase, for small loans and for education
3. Start an emergency fund. If you don't have a bit saved for a rainy day, you'll have to go into debt for emergencies — or tap your retirement fund.
4. Emergency Fund should equal 3 to 4 months of expenses.
5. Make a living will, so your family will know your wishes in case of a health emergency. You'll need one when you retire, but you never know what will happen in the meantime.

30 to 39

You're still young; you're starting a family; you're in debt up to your eyeballs.

1. Don't reduce your retirement savings for college savings. You can finance college; you can't finance retirement.
2. Use your SUPER to help you save.
3. Write your will. You never know.

40 to 49

You're middle-aged; you're doing OK; you're starting to get worried.

1. If you plan to remain in your home, refinance to make sure your mortgage will end when you stop working.
2. Update your living will and make sure someone has power of attorney. You never know.

50 to 59

You're nearing retirement; you're at the peak of your career; you're terrified.

1. If the kids are out of college, consider reducing your life insurance and increasing your savings.
2. At 55, start reviewing your Pension Scheme you might receive. See how much your savings will have to be tapped to meet your expenses.
3. Update your will. You never know.

I'll be writing more on this and will link it to this post. At this level I think finances should be an important aspect in our thinking process. In mine at least!!!