Tips on how to retire without debt

Read on and know useful tips on how you can get rid of all your debts before you hit retirement.

07:54 20 May 2013

A lot of people are now less excited about retiring. Due to tough economic times, a lot of people who will retire in the next 1 to 5 years are still paying huge debt such as mortgage, car loan, and credit card debts.

Retirement for these people will mean stretching their pensions to the limits just to make both ends meet. Well, that thought isn’t exciting at all.

Although retiring debt-free is much more difficult to achieve right now, it is something that can be done through proper planning.

The first thing that you need to do is to save as much as you can as early as possible. This means setting aside a portion of your salary every month.

Also, keep in mind that the closer you are to retiring, the more money you need to save. You can use the money to pay for your debt and to prepare for your retirement.

Doing this would sometimes mean cutting unnecessary expenses like going on a holiday numerous times a year perhaps? Or eating in expensive restaurants every week, etc.

Instead of putting your money on regular savings account, learn how to invest them in order to earn as much passive income as possible. To know the best investment options, talk to independent financial advisor.