The age of 60 is a time when you are nearing retirement. This is the time for you to slow down and gear up for the exciting retirement life ahead of you. But of course, retirement does not just mean “not doing anything.” In fact, there’s still so much financial planning and readiness that you have to do. Save and make money at 60 years old to secure a good, fun, and comfortable life for you and your family!
In preparation, here are 9 of the most important tips to help you save and make money when you’re nearing retirement.
1. Estimate Your Savings
In order to make sure you have enough money at 60 years old and beyond, you must invest your savings in the correct place. However, to do so, you must be aware of the amount of savings you currently have. You need to plan for the future by effectively managing these savings.
2. Calculate The Expenses You Have On An Annual Basis
For financial planning, you need to make a proper budget of your spending. This will allow you to gauge if you’re good with just saving, or if you still need to make money at 60 years old. A proper spreadsheet should be maintained, or you can note your expenses down in a notebook. Forecast these expenses on a linear or growing basis annually.
To start you off, check out helpful websites for seniors and pre-retirees like this on: How Much Can I Afford to Spend in Retirement? This blog can help you understand how much money you need to save up and still need to make for a comfortable retirement.
3. Keep A Fully Funded Emergency Backup Plan
Unforeseen things always occur. You should always be ready for these circumstances when they occur. To make sure you have a safety cushion, you have to have a fully funded emergency back-up plan. This can be through investments in short-term CDs, which will keep you safe in case the market faces a downturn.
4. Plan The Stages Of Making Cash Withdrawals
As you make a profit on your investments, you must have a proper schedule set for when you will be withdrawing these for your use. You can keep a fixed percentage in mind and withdraw that amount at the end of each passing year. If your needs increase, you can adjust this percentage too.
5. Look For Safety In Your Investments
Try to invest in those portfolios that comprise of more safely backed investments. You may face risk at various times, but with more risks comes more returns. Don’t try maximizing risk, but minimize it and use it to your benefit.
6. Do Not Neglect Growth
Try also to invest in things which will provide you growth. Although they may be slightly risky, but a few in your portfolio can easily be managed. A little growth is needed to remove the effects of inflation.
7. Try To Minimize Spending
If you wish to keep living a comfortable life in retirement, you must try to manage and minimize your spending, too. There will always be emergency house repairs and unplanned expenditures, so always err on the safe side so your retirement fund won’t run out.
8. Start a Profitable Retirement Project
If you’re not ready to cut back on your spending and would like to secure a more comfortable retirement, this is the way. You can make money at 60 years old by venturing in online and offline projects as you get into retirement. Maybe you can start a blog, and monetize it. Or maybe you can start a small business. Perhaps you can finally invest in that big idea you’ve been wanting to pursue.
There are many profitable businesses and projects you can embark on in retirement so you can start planning for those as early as possible.
9. Find Opportunities Online
The digital world is ripe with opportunities to make money at whatever age you’re in. At 60 years old, you’ll find casual jobs you can take and hobbies you can turn into profitable ventures just using the internet. The key is finding what you’re interesting in, what are your strengths, and then match that with the opportunities online.
For example, if you like crafting, why not sell handmade items in online marketplaces? Do you like shopping? Get into rewards programs, cashbacks, or venture in buy and sell. If you’re an expert in a particular field, you can start a Youtube channel to share your expertise with the world.
When you are near retirement, you always have to think about how to save and make money. This will ultimately lead to a more comfortable second half of your life.