Posted on: 22 February 2018
With a low income, it can be difficult to do anything aside from living paycheck to paycheck. Though it can be difficult, it is important to make plans for the future, especially for those who are living on less. Instead of going through the motions of trying to make money stretch on your own, you should speak with a retirement planning service. Here are a few ways to come up with a comprehensive retirement plan for a low-income family.
Figure out the lowest cost living
The largest expense that you will have to live with permanently is housing. Many low-income families spend most of their money on their housing. In order to be able to save for retirement, you will have to decrease your housing expense or make a new plan. One of the best ways to plan for retirement and lower housing costs is to get a mortgage or purchase a home. Purchasing a moderate to low-priced home on a 15-year mortgage will mean that you are done paying off the mortgage by the time you retire. This will heavily decrease your bills and make sure that you don't have to worry about rent price increases as you grow older.
Have the whole family get in on saving
When you are low income, it is to your benefit to link with others in your family, and even friend groups, in order to save for retirement. Instead of each person contributing a small amount to their own personal retirement, everyone can pool money for retirement and split it evenly. If you are unable to pool money together, the group of friends and family can come together and create a new income, such a small delivery service, laundry service, or more. This way everyone can earn a little more money solely for retirement.
Consider alternatives to retirement
For those who are low income and are beginning to save for retirement too late, there may not be the option to stop working at a specific age. If you fall into this group, you should reconsider your plans for retirement. An alternative method of retiring can be to start a passive business, such as a sales business. This will allow you to stop working your 9 to 5 job, but it will also help bring in income to supplement your savings and your social security. Finding an alternative method to traditional retirement will keep older workers out of a stressful workplace but still offer a retirement plan.Share