Although technically retirement means stopping work altogether at a certain point, it actually means different things to different people. For some, it’s a chance to start a new business and try something new, and for others, it’s the ideal time to go travelling. Still more like the idea of getting to spend quality time with their family and friends, and others might consider retirement an excellent excuse to go back to school and learn more about a subject in which they’ve always had an interest.
No matter what your plans might be, it would be wonderful to start your retirement in a debt-free way so that you don’t have to concern yourself with financial worries when working out what your next steps might be. If that idea appeals, here are some ways you can have a debt-free retirement, making it just what you want it to be.
Of course, the most obvious way to have a debt-free retirement is to save as much as possible during your working life. Make sure you have a separate savings account and regularly put any of your money into it that you don’t need. When you have enough saved up, you can use it to pay off each debt, one by one. If you have no debts anyway, you can continue to save this money to finance your plans and give your retirement fund a nice boost.
Saving money isn’t easy, particularly when the internet and apps make it possible to buy items we don’t need in mere seconds. So not only is saving a good idea but so too is only buying things you really need.
Have A Side Hustle
The term ‘side hustle’ refers to a business that you run in your spare time while also working. This can be a great way to make some extra cash and to use it to pay off your debts before retirement comes along. In fact, if this second career is going well, you can continue to work on it and in it after your retirement, helping you make even more money.
The problem with side hustles is that they do take up a lot of time, requiring input from you. To minimize this where possible and make life a little easier, you could look for a suitable franchise at Franchise Direct. Picking one that offers a full back office set up and plenty of training, or even one that allows you to make money passively, would be ideal.
If you own your property, then by the time you come to retire, assuming you have been careful with your mortgage, you won’t have anything left to pay, or at the very least the outstanding balance will be small.
With this in mind, you might choose to downsize. If you can buy a smaller, cheaper property, you can use the equity in your current one to buy it outright without the need for a mortgage. On top of that, you should have money left over, which can then be used to pay off all your debts and, if you have enough, you might even be able to use it to fund your retirement lifestyle too.