While we all know that it is a good idea to save for retirement, the truth is that not everyone is ready when the time comes. You should not feel as if you are alone because you do not enough money to retire, but you do have to work on solving that problem as soon as possible. The good news is that you can do a few things so that you can still retire at a reasonable age. Not everyone likes the idea of flipping burgers at the age of 70 so it is time to get started on it now.
Do Not Take On New Debt
This is not the time to take on any new debt; it is the time to pay any debt off. Some people will tell you that real estate is a great investment and they are partly right. They are only partly right because you never know what the real estate market will do. A lot of people who bought a new home in 2007 quickly found out that the value of their home could drop at any time. They got a home in 2007 saw the value of that property drop by over half of what they paid when the market crashed in 2008. There are other better investments listed later in this article, but for now try to avoid taking on new debt as much as possible.
Get A Second Job
It is not always the most attractive option, but if you are in your 40’s and you do not have any money set aside for retirement a second job is one of the best options. Getting the extra income will allow you to put some extra money aside while you attempt to also do other things to save money on your everyday life. You do not have to make it a full-time job; in fact it is possible to do some things for work without taking much of your time. You could be an independent person working on the things you know during your spare time. The important thing is to increase your income.
Passive Income Online
There are many things that you can do to start making money, not only today but also for a very long time into the future. You will notice that when you go on the internet it is easy to find passive income opportunities, but it is your job to find out which ones are the real ones, the better ones for you and which ones are just scams. You need to understand that these types of opportunities are not very likely to make you rich though a few of them have the potential of creating a reliable source of income, but it will take some time for them to pay off. Here are some of those ideas.
Blogging is a great way to do something that you like and get paid for it. You could get either a free blog from platforms like Blogger or WordPress, or your own blog and then include ads in them. When someone clicks on the ad you get paid or in the case of affiliate marketing you get paid when a visitor buys something. You should consider all types of advertisement related to the material you are including in your blog, but do not go crazy including too many ads that will turn off your visitors. Focus on great content and let people know that your blog exists and the money will eventually be there (not overnight).
Write about things you know and that you are an expert on. The more knowledge you are giving to your visitors the more likely it will be that you will bring in more people and in turn more money. Do not settle for one blog; if you know about more than one subject then get different blogs to write about them. Free blogs are great because you can get as many as you need and as long as you do not violate the terms and conditions from the platform, you can keep them for as long as you want. It is a free source of passive income, but you will have to work hard to get visitors especially when you are getting started.
Write For A Third Party
Writing for a third-party is a great idea because in most cases the traffic is a lot easier to get. The best sites already have people visiting, and are also set up to use social media to spread your message. One such site is the one that you are visiting now. InfoBarrel is a personal choice of mine, but there are others out there that you can write for. The payment process works almost the same way as it would with a blog with the exception that you get a percentage of the money per click instead of the full amount.
While you are not getting the full income from clicks, you are getting visitors right away and that means that you start seeing money accumulate from day one. Just like when you work on your own blog you will still need to work hard for real income to accumulate, but it is still passive income that can help you make ends meet years from now.
There are other online passive income opportunities such as peer-to-peer lending, eBooks, photo licensing, e-courses, etc. and they are all worth looking into. The more things that you do now the more income you will see each month now and in the future.
Social Security And Where To Retire
The one thing that you should not rely on is Social Security. You will probably get it, but you do not really know how much. According to the U.S. Social Security Administration as of 2012 the average for a retired person per month was only $1,230. That is not enough to live on even if you were to choose the middle of nowhere or a really bad section of the inner city. If that is all you have now for your retirement then perhaps you should think of another country where your dollars will go a lot further.
There are several places in Asia and Latin America where you could retire with 1,000 dollars a month and still live the same type of lifestyle you do now because the cost of living is much lower. You have to look at the visa requirements for each country and you may need to travel back home once every few months, but the amount that you will spend in utilities, rent and groceries makes it worth the trouble. In some places you can rent a nice apartment for 400 dollars or less with utilities included and spend a lot less than that on your groceries and medicine, so why not give it a chance?
Make The Right Investments
The older that you get the more important it is that you do not risk your money. The money that you are saving should be invested in the right way so that you have that money and more when you retire. You should try things like CD’s, 401Ks, IRAs, conservative mutual funds, U.S. Bonds, Blue Chip companies and even savings accounts provided you will not touch that money.
You should also look for well established companies that pay dividends; That will allow your money to grow both when the company grows and when they pay a dividend. The idea is to get your money to grow as much as possible without taking too many risks. It is also important to diversify your investments in case one of them does not work, the others will make it easier to take any loses.