7 Ways to Avoid Financial Regret in Old Age – Part 2
Last time, we took a look at an all important subject of avoid financial strangulation in your golden years. Lets finish up our topic today. Here goes…
##4 Can you overpay your mortgage?
If you get a windfall, or extra money, you may be tempted to go on that once in a lifetime holiday you have always dreamt off.
Or you could put some money towards the capital payment on your mortgage, reducing the loan, reducing payments and therefore reducing the total interest in the long run. (this applies in the UK).
Or on some loans, the lender may not allow you to adjust the payment so you end up paying the same amount. But the net effect is that you reduce the time i.e. you get to stop paying the mortgage earlier.
By which time, you can definitely afford to go on any holiday you want…or well…most if you have done the other points above!
##5 Are you living large?
Now I am not saying not to enjoy life which time and time again I have reminded you that the Bible too endorses (see John 10:10). However, like the prodigal son in the Bible, you don’t want to be in a position where you spend all that you have without a care in the world and without plans for your golden years.
Thinking you will not live long is not good thinking. So if that is the reason for your overspending habits, cut back. Because there is power in our mouths. The Bible says death and life are in the power of the tongue. I’d rather speak life than death since the power lies in what I say!
Then, this one is a personal decision only you and your spouse can make…I remember sharing accommodation with an elderly lady who was working night and day to support her youngest kid. Although she loved this kid, life had thrown a curved ball. With her husband in a home due to a stroke, she had to work beyond the years she had planned. She later revealed to me she had been pressured to have her last child when she was much older because of her in laws…who were of course long dead, and not alive to help with the bringing up of said child. This may be common in some cultures. You need to think about what is best for you in terms of the number of kids you both want.
Also, if you are on a big fat salary, you may be tempted to show off to your ‘less fortunate’ friends with the big SUV’s and fancy clothes. Ask yourself how much these will appreciate in a few years? Did I get an answer? Pardon me? Exactly? Zero percent.
A big fat 0%.
##6 What do you own?
Think about how you are living now and if it is sustainable. Is the car a company car? Are you living in accommodation provided by your company? Does your company give you a lot of benefits now that will no longer be accessible to you in your golden years?
It is easy to enjoy company benefits and get carried away with the ‘la vida’. Don’t forget that these benefits belong to the company and not you! What happens when you stop working for the company? How long before they take away the house and car?
Start planning now. Don’t find yourself homeless!
##7 Giving to God and to Good Causes
As Christians, we are instructed to give the first 10% of our income to God. Some Christians struggle with this and it is a choice and one I am not shoving down anyone’s throat!
I have tithed for years, and even in times when Chuck and I went through some challenging times as job entrenchment, etc, we were kept very buoyant, not even just afloat. Anytime we needed anything, that thing would be massively discounted. People favoured us. We even invested. Things did not break down in the house or car, or anything major that caused our pockets to have holes.
I believe in tithing, it is my own belief, I make no apologies for it, and I can only share on these blogs what works for moi! I believe that tithing also teaches me to give…
Rich people and/or millionaires give. They give to charities, they give to a good cause. They have learnt a principle in life, that giving opens up channels and makes one richer. It sounds like an oxymoron but you have to give to become richer.
Check with the company you work. They probably have organisations and /or charities they support and give. It is a spiritual principle that works time and time again.
And I still bought that bag (the one I spoke about in Part 1) few weeks later!!
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So plan for your retirement so you will enjoy your golden years with joy and peace. Think beyond the here and now. Plan but still enjoy life now. Still treat yourself.
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