Four Things that Will Stop You from Enjoying Retirement

Many people think they cannot retire because they do not have enough money. Why? Because they haven't saved enough to retire in the style they've worked to achieve. Money is surely a big consideration, but it's only part of the picture.

The real reason people can't retire is because they have too much non-mortgage debt! You see, when you are young you have less to save towards your retirement because you must make those debt payments. Mortgage payments are applied to something that increases in value over time, but most (or a considerable sum) of payments are for things that have absolutely no lasting monetary value. The truth is that in retirement you actually need more income because, besides the regular monthly expenses, the non-mortgage debts that you've acquired keep demanding payments. So, in short, many people save minimal amounts towards retirement, but will find out they need more money during their retirement.

According to a recent study by Scottrade, a whopping 63 percent of Americans have more debt than savings! If you're still working and have a few years to go to retirement here are some basic tips that can help you build financial stability and get out of debt before you reach those golden years.

1. Stop borrowing money! You must realize that you cannot climb out of the neverending hole until you stop digging. Stop the merry-go-round of borrowing to pay off or consolidate debts; this only increases the amount due and adds to the time you will be paying.
2. Stop procastanating - save something! Stop talking about it and start saving; even if it's just a few dollars a month. You might think that just $50 a month will get you no where, but over time the money grows and you begin to see progress. If your place of employment offers a 401K, join it and make paying yourself first a priority!
3. Set up a realistic budget! Saving can be similar to weight loss. We want to drop a lot of weight and we want to do it quickly. However, extreme weight shedding strategies seldom work, and the same is true when applied to saving money. Counting every penny and denying yourself every indulgence will not help you to succeed. Instead target the categories that cause you to overspend. If you're like many people eating out, shopping or buying eye-catching gadgets are big downfalls. Don't eliminate these categories, but set a reasonable budget and stick to it. Being reasonable is easier to stick to than trying to budget every penny you spend. Saying "no" only causes people to overspend.
4. Plan for "oh shit" happenings! Life is full of unexpected events, like emergencies. Building up an emergency fund in a high-interest savings account reduces the possibility that unexpected events will cause us to acquire more debt. No matter whether it's buying a new car, taking vacations, or paying for a wedding, these kinds of expenses can suck you into deep debt.

Saving for the big retirement day is not easy. Guess that's a given, because if saving enough money to provide a comfortable, Cinderella-type of retirement, there would be no devastaged elderly. But, keeping debt under control and taking the time to 'think' about what you're doing can certainly improve your chance of having the money you need to retire comfortably.