Financial Stability and Retirement Planning

Financial stability takes so many things in today'sNot only do have to save for retirement in any
society. I was talking to my mother the other daynumber of plans that are available. It is essential that
about their retirement funds. She and my father areyou live within your means. Using credit cards to
both in their 70s. They are one of many couples thatpurchase things that you could not afford is stupid.
lived in a day where you just put your time (30 plusPaying interest on consumer debt is like throwing
years) in with a company, you retired and collected amoney away. Avoiding consumer debt will get you
pension. That is how they did it. My dad retired at 57will on your way to being financially stable and having
(something that is practically unheard of now)credit card debt can lead to years of unnecessary
because he had 30 years in with the state and heinterest payments.
could begin collecting his pension.Having enough insurance to cover medical expenses,
The company I work for also has a pension, butplanning and saving for retirement and avoiding
they just announced that this is the last years for it,consumer debt are three things that will help you gain
but our 401K contributions will be matched throughfinancial security. Another thing you will need is an
the first 6%. This is still more than the averageemergency fund. The job market is very unstable
business gives these days. Our health insuranceright now. More companies than ever before are
changes this year and I am finding that it does noteliminating positions and downsizing and unfortunately,
pay as much as our previous insurance. The bottomthis is also something that you have to be prepared
line is if you don't take the time to plan for yourfor. The best way you can do this is with an
financial stability, you are going to find yourself withemergency fund. You need an account that is liquid
financial issues that you may not be able to recoverthat contains 6 to 8 months of expenses.
from.This may seem like a lot, but not having anyone one
You have to make sure you have enough insuranceof the previous accounts and needing it can lead to a
and now you may want to consider a flexibletemporary financial hardship or in a worst case
spending account for amounts that are not coveredscenario, can lead to financial ruin. You will not
by your insurance. This is actually money you savebecome financially stable overnight, but with
yourself, but it is before tax dollars that you can usepersistence you will see your account balances
to cover medical expenses not covered by insuranceincrease.
and things, such as; vitamins and cold medicine.