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The years leading up to retirement can be equally exciting and challenging. In addition to the extra time you have to spend with friends and family, you have to be conscious of your finances — as you’ll be giving up steady income in your remaining years.
Working professionals across Canada are looking at their finances differently as they begin to think about their retirement and what that lifestyle looks like — and the closer you get to leaving your profession behind, you should have a clearer idea of what your finances will look like.
To help you get started, we’ve devised simple financial tips for Canadians looking to retire in the near future.
Clear Your Debt
Debt is one of the biggest obstacles working professionals face when it comes to planning for a stable retirement. When you have outstanding payments, it can hinder your ability to save money for the future adequately. Dealing with your debt is the first step. Many borrowers are familiar with installment loans in Canada as a tool to help consolidate their debts, while others can use their own budget tools to lower their expenses and simultaneously put more money towards their debt. The sooner you can find the option that works for your lifestyle and income, the sooner you can allocate any extra money into your retirement accounts.
Track Your Spending
Before you enter into retirement, it’s important to track your spending while you’re still working. Using a budget tool, lay out each of your expenses per month against your current income. Knowing how you’re spending presently will help you identify where you can make changes as you get closer to retirement.
If you’re used to the convenience of take-out or delivery, spending more time cooking and clipping coupons is a simple way to save money every month — or it could mean taking fewer trips in order to commit to saving your money to enjoy when you no longer have to stress over your job.
If your home is on the larger size, consider downsizing while you still have the energy to move. Downsizing is a significant way to free up your finances — after all, as you age, you likely won’t have the physical ability or energy to maintain extensive square footage. With the money you have leftover, you’ll have the freedom to spend as you prefer — whether it’s travelling, investing, or spending it with your family.
Find Ways to Earn Additional Income
If you’re able to earn more money before you retire, why not explore those options? If your job allows for overtime or additional hours, it might be worthwhile to put in the time so you can earn more money for your long years of retirement.
If you have a talent that can be used to earn additional income — from coding to sewing — you could offer those services to your community or online for easy money that allows you to utilize your passions. The more creative you can be today, the more financial freedom you’ll have to enjoy when you’re able to say goodbye to the working world.