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For many people, retirement is regarded as something of a comfort. The fact that one can leave the workforce in their 60s, or perhaps even earlier, without having to worry about money again is nothing short of stress-relieving. With that said, debt can still occur, especially among those that haven't been entirely careful with their money. To know how to avoid debt during retirement, here is some insight provided by Robert Jain.
One of the best ways to avoid debt during retirement, according to the likes of Bob Jain, is to know which debts are okay to have. Your mortgage is a great example of a reasonable debt, as it's one that all homeowners will have to cover. The same cannot be said for, say, a store credit card you recently opened. This can become a financial detriment in a hurry, so keep this information in mind at the onset.
Next, create an emergency fund that, hence the name, will only be used for emergencies. Build up this account as far ahead of time as possible so that you have as money as needed for potential injuries, losses, or what have you. Furthermore, do not dip into this account for any reason other than worst-case scenarios. By following these rules, you'll have another countermeasure to lean on if debt becomes a concern.
What about the possibility of part-time work? Despite what you may think, retirement doesn't prevent you from working every now and then, especially if you don't find the idea of staying at home enjoyable. Furthermore, you'll be able to make some extra money on the side, which may help in terms of reducing the risk of debt. Seeing as how many people work into their 60s, or even older, this isn't as uncommon of a venture as one might expect.
As you can see, there are quite a few ways to avoid debt following retirement. When you leave the workforce on a full-time basis, you should be able to enjoy the fruits of your labor as much as possible. This cannot be easily done, however, if you have certain payments that have to be made. For those that are planning on retiring down the road, following steps like the ones discussed earlier will make a huge difference.
One of the best ways to avoid debt during retirement, according to the likes of Bob Jain, is to know which debts are okay to have. Your mortgage is a great example of a reasonable debt, as it's one that all homeowners will have to cover. The same cannot be said for, say, a store credit card you recently opened. This can become a financial detriment in a hurry, so keep this information in mind at the onset.
Next, create an emergency fund that, hence the name, will only be used for emergencies. Build up this account as far ahead of time as possible so that you have as money as needed for potential injuries, losses, or what have you. Furthermore, do not dip into this account for any reason other than worst-case scenarios. By following these rules, you'll have another countermeasure to lean on if debt becomes a concern.
What about the possibility of part-time work? Despite what you may think, retirement doesn't prevent you from working every now and then, especially if you don't find the idea of staying at home enjoyable. Furthermore, you'll be able to make some extra money on the side, which may help in terms of reducing the risk of debt. Seeing as how many people work into their 60s, or even older, this isn't as uncommon of a venture as one might expect.
As you can see, there are quite a few ways to avoid debt following retirement. When you leave the workforce on a full-time basis, you should be able to enjoy the fruits of your labor as much as possible. This cannot be easily done, however, if you have certain payments that have to be made. For those that are planning on retiring down the road, following steps like the ones discussed earlier will make a huge difference.
About the Author:
Would you care for more insight about saving money? If so, feel free to get in touch with Bobby Jain now!. Free reprint available from: Retirement Debt Tips Provided By Robert Jain.
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