patti
7 Tips to Starting Over Financially: After 50
Restarting Financially at 50: Seven Essential Tips
Starting over financially after a significant life event such as bankruptcy, divorce, or career change can be daunting, especially post-50. However, it’s entirely possible to regain your financial footing at this stage of life. Here are practical ways to restart your financial journey at 50 or beyond.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
1. Find Work You Love Using Existing Skills to Starting Over Financially
When starting over financially at 50, leveraging your existing skills by finding employment or freelance opportunities can be particularly effective if you niche down into sub-niches. For example, if you have experience in marketing, you might specialize in digital marketing for healthcare, a niche that could benefit from your depth of knowledge and experience. This focus can make you highly valuable and sought after, which can be incredibly beneficial when you’re starting over financially. Enjoying what you do and being recognized as a specialist makes it easier to adapt to new work environments or manage longer hours.
Finding work that uses the skills you already possess helps to reduce any mental strain when working. You also do not need to spend some time in any training. You will also likely perform better in the job for which you already have skills.
Taking work you love will boost your patience. It also provides you with enough income as you wait.
2. Maximize Retirement Contributions Through Employer Match
Many employers will match your contributions into a retirement plan. This means you double the amount of money you contribute to this scheme. Finding an employer who has a 401 k plan is one way of ensuring you do this. It allows you to get free retirement money to use later in life.
That said, finding a catch-up contribution program at this age works for many people. This plan allows you to contribute an extra amount of money into the IRA retirement plans such as the 401k and 457 plans.
You can also defer salary payments to save more with those plans. Find out if your employer has any employer-sponsored retirement plans that allow you to defer payments to increase contributions to the IRA.
Unlike the IRA, emergency funds such as the Roth IRA help you to double the amount on the retirement account. Further, you can withdraw all the contributions from this account without incurring any penalties.
3. Make Prudent Investment Decisions for Starting Over Financially
You will always attempt to invest at any age in the hopes of increasing your income. However, that comes with a risk of losing even the capital depending on the type of business and how you do it.
Most people never think about measuring investment risk when choosing an investment. Although every business and investment has some risk, it is always advisable to invest in a low-risk business. The exception is when you prove that a high-risk investment has high returns.
Low-risk businesses are those that do not have the risk of losing the principal. This happens, for instance, when the investment is guaranteed by the government or an insurance company.
They may include but are not limited to bonds and stocks. Stock index funds may have a high risk while individual stocks are rated as with extreme risks.
Further, it is advisable to go slow with the investment and start growing it slowly rather than putting a lump sum into it. That said, always avoid the get-rich schemes and investments.
4. Consider Delaying Social Security Benefits
Taking Social Security at the age of 70 instead of taking it at an early age provides far more inflation-adjusted income. The amount you were supposed to receive will increase by a given percentage for each year you defer taking those benefits.
The benefits could increase by as much as 40 to 50 percent if you take it at the age of 70. Consider that taking the benefits early also reduces your spousal benefits. Hence if you are married and are starting over, each should wait.
You can apply for withdrawal of the benefit even if you have started receiving those benefits. You only need the time before a one-year window is over to repay the amount received so far.
It is also possible to repay if the one-year window is over and the amount repaid will be far less than the benefits you reap waiting. After repaying, you can apply for the benefits later as if you never had started receiving any.
5. Explore Lifelong Learning Opportunities
Engage in lifelong learning to keep your skills updated and expand your professional network. Platforms like Coursera and Udemy offer courses on finance, investment, and business management, often at reduced rates for seniors. Continuous education is a key strategy for maintaining employability and financial acumen when starting over financially.
6. Leverage Community and Governmental Resources While Starting Over Financially
Look for free financial planning workshops, career counseling, and grants for starting a new business from community centers and government agencies. The U.S. Small Business Administration (SBA) offers guidance and support for mature entrepreneurs looking to start over financially. These resources can provide substantial support without significant investment, making them ideal for someone restarting financially.
7. Additional Learning Tools
To deepen your understanding of personal finance and investment, consider using tools like Khan Academy for free courses, Investopedia for financial terms and tutorials, and The Motley Fool for stock investing advice. These resources can be invaluable when you’re starting over financially at 50 or beyond.
Taking work you love will boost your patience. It also provides you with enough income as you wait.
Key Takeaways:
- Utilize Existing Skills: Capitalize on your existing skills, potentially focusing on niche markets to increase your value in the job market.
- Secure Retirement Funding: Take full advantage of employer retirement matching and catch-up contributions to boost your retirement savings.
- Invest Carefully: Choose low-risk investments to safeguard your principal and ensure steady financial growth.
- Delay Social Security: Consider postponing Social Security benefits to maximize your future financial stability.
- Commit to Learning: Continuous education can keep your skills relevant and expand your professional opportunities.
- Use Available Resources: Utilize community and governmental resources to support your financial restart with minimal cost.
Life After Bankruptcy: 9 Steps to Move Forward
9 Strategies for Life After Bankruptcy
No one enters life hoping to experience financial distress or face bankruptcy. Yet, sometimes due to unforeseen circumstances, financial setbacks like those described in ‘Life After Bankruptcy’ occur. Whether due to poor luck, unexpected events, or economic downturns, bankruptcy can happen. It’s not the end; it’s an opportunity to rebuild and redefine your financial life.
Here are nine steps to help propel you forward during this challenging time, focusing on the theme “My Life After Bankruptcy”:
*Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
1. Embracing Reality and Resilience
Embrace the reality of your situation as the first step toward recovery. Acknowledging that you’ve faced a setback is crucial, not as a sign of defeat but as a prerequisite for building a new path forward. This acceptance will empower you to tackle challenges head-on and lay the groundwork for your financial resurgence.
If you can’t accept this, how can you then get up? Therefore, you must be willing to accept reality. Accepting reality does not mean that you surrender and become hopeless. Accepting means consciously acknowledging that you have failed. After accepting your failure, you can start looking for solutions to these problems.
2. Identifying Causes: Understanding the Triggers of My Life After Bankruptcy
Analyze what led to your financial downturn. Was it excessive business expenses, poor financial planning, unexpected medical bills, or an economic recession? Understanding these triggers can prevent future occurrences. Implement safeguards such as separating personal and business finances, seeking adequate insurance, or better financial planning.
3. Finding New Opportunities in Pathways to Financial Recovery
Post-bankruptcy, your focus should be on finding new avenues for income that match your skills and market needs. Whether it’s a new career path, starting a small business, or freelancing, opportunities to rebuild financial stability are abundant. Use the lessons learned from your bankruptcy to make wiser choices in your ventures.
4. Setting New Priorities for My Life After Bankruptcy: Reshaping Financial Goals
Re-evaluate your financial goals and adjust them according to your current situation. If homeownership seems distant, perhaps prioritize building an emergency fund or saving for retirement. Set achievable goals that match your new financial reality and work steadily towards them without overextending yourself.
5. Cultivating Positivity: Mindset Shifts for My Life After Bankruptcy
Maintaining a positive outlook is essential when rebuilding your life after bankruptcy. Focus on what you can control and stay optimistic about your ability to overcome this hurdle. Positive thinking will not only improve your mental health but also enhance your capability to make sound financial decisions.
6. Debt-Free Living: Strategies for Financial Freedom
Commit to staying debt-free as much as possible. Avoid the temptation to take out loans for large purchases and instead save up for what you need. Embrace a lifestyle that you can afford, keeping luxuries minimal until your financial situation is more secure.
7. Living Frugally: Thriving Within Means in My Life After Bankruptcy
Adopt a frugal lifestyle to rebuild your financial foundation. This means prioritizing essential expenses and avoiding splurges. Channel any extra funds towards saving or investing, focusing on long-term financial health rather than immediate gratification.
8. Gaining Perspective: Community Engagement in My Life After Bankruptcy
Sometimes, shifting your perspective can help you cope better with financial limitations. Engage in community service or connect with others who face similar challenges. Helping others can provide a sense of purpose and remind you that financial status does not define your worth.
9. Multiplying by Giving: Generosity and Gratitude in My Life After Bankruptcy
Even in tight circumstances, consider giving back, whether through time or small donations. Generosity can foster a sense of abundance and positively impact your psychological well-being. Giving to others can also help build connections and open up networks that might aid in your financial recovery.
Your conclusion does a good job of summarizing the article’s message and encouraging the reader. However, if you’re looking to enhance it for clarity and impact, consider making it slightly more concise and focused, while maintaining an inspirational tone. Here’s a refined version:
Conclusion
These strategies offer practical steps to recover from bankruptcy and rebuild a solid financial foundation. As you implement these ideas, you can restore your financial stability and pave the way for a brighter future. Continue to persevere and maintain faith in the process. Remember, consistent effort creates enduring results. Let these principles guide you as you move forward in your journey after bankruptcy.
Key Takeaways:
- Acceptance is the First Step: Acknowledging and accepting your current financial situation is crucial for moving forward.
- Understand the Causes: Analyze the specific reasons behind your bankruptcy to avoid similar pitfalls in the future.
- Seek New Opportunities: Look for new income sources that align with your skills and current market demands.
- Prioritize Wisely: Reassess your financial priorities based on your situation and set realistic goals.
- Stay Positive: Maintain a positive mindset to boost resilience and enhance decision-making.
- Avoid New Debt: Commit to living within your means and steer clear of incurring new debt.
- Embrace Frugality: Live frugally to rebuild and secure your financial foundation for the future.
- Gain Perspective: Engage in community service to gain a healthier perspective on life and finances.
- Be Generous: Find ways to give back, which can enrich your life and potentially open new doors.
By incorporating these takeaways into your daily life, you can navigate the aftermath of bankruptcy more effectively and lay the groundwork for a financially secure future.
Financial Goals for Your Future
Top 8 Best Financial Help Sites for 2024
Top Financial Help Sites for 2024
Financial management often requires assistance from reliable sources, which is why we’ve rounded up the top 8 best financial help sites for 2024. These sites are crucial for keeping expenses in order, planning, and adhering to a budget, especially during busy times.
Each of these financial help sites offers tools to help you easily track spending, quickly get out of debt, and manage all your bills effectively. The best part is that all these resources are available for free! Explore these online tools today to become financially sound, meet your financial goals, and save more time.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
1. Financial Help Sites Spotlight: LEARNVEST.COM
LearnVest is an all-in-one website for financial management – aimed at empowering women to take control of their finances.
They position themselves as the best website for getting organized, informed, and supported. The website features user favorites like courses, articles, and tools targeted mainly to where you’re at in life.
Specifically, LearnVest provides tailored financial plans and one-on-one coaching to address unique financial situations, from debt management to saving for retirement.
Their platform also includes interactive budgets and custom financial to-do lists, making it easier for users to achieve their personal and family financial goals in a structured way.
2. MINT.Intuit.COM: Your Financial Planner
Most financial planning tools are available with limitations, but there aren’t any free options as user-friendly and comprehensive as Mint. With Mint, it is possible to create a sound budget with various categories and sync your bank accounts so spending in different categories can be automatically tracked.
Additionally, Mint offers customizable alerts to keep you informed about unusual transactions, low balances, or upcoming bills, enhancing your financial oversight.
The platform also provides visual analytics, helping you to see your spending trends over time, which can guide better financial decisions and goal-setting. Mint simplifies personal finance management in an intuitive and accessible manner.
3. Discovering Opportunities with NERDWALLET.COM
This website is a good choice if you require a credit card! On financial planning websites, people often wonder where to begin.
NerdWallet is the ideal solution for such situations, offering advice on low rates, airline miles, cash back, and more. It meticulously compares various credit card offers to provide you with the best options that suit your financial goals and spending habits.
Additionally, NerdWallet guides users through complex credit terms and benefits, ensuring they make informed decisions. It’s also a valuable resource for tips on credit score improvement and managing credit card debt effectively.
4. Empowering Financial Decisions at DAILY WORTH.COM
If financial magazines and news catch your attention, Daily Worth is the place to look. The site’s daily emails offer practical financial advice and articles helping women earn, budget, invest, and spend smartly.
Beyond just providing tips, Daily Worth empowers its readers with tools to achieve financial independence. It covers a broad range of topics from negotiating salaries to optimizing retirement savings.
The platform also dives into lifestyle-oriented financial decisions like choosing the right insurance products and saving for big life events. Daily Worth stands out by blending financial acumen with an understanding of the unique financial challenges women face.
5. Bankrate.com: A Trusted Name in Financial Help Sites
Bankrate is among the most respected and knowledgeable websites in the list of best financial help sites. Originally launched way back in 1976, Bankrate.com provides plenty of information about mortgages, bank rates, and credit cards, along with personal finance advice in areas like planning, investments, and retirement.
The site also offers comprehensive tools and calculators that help users determine loan affordability, debt repayment schedules, and savings growth.
Additionally, Bankrate frequently updates its content with current trends and changes in financial laws to ensure users receive the most accurate and actionable information. This makes it an invaluable resource for financial decision-making.
6. WISEBREAD.COM: Simplifying Personal Finance with Financial Help Sites
One of the most popular community websites for managing personal finance is Wise Bread, which includes experts and bloggers in its membership.
They promote a lifestyle of financial independence without sacrificing enjoyment. This site offers a wealth of information on frugal living strategies, cheap travel tips, and savvy shopping techniques.
Wise Bread stands out for its practical advice on maximizing rewards programs and minimizing everyday expenses. Their articles often provide innovative ways to stretch your dollar further, making it easier to achieve financial freedom while still enjoying a rich quality of life.
7. KIPLINGER.COM: Financial Insights and More
Kiplinger takes a unique approach, but it is highly valuable on its own. The site offers tips and tricks for personal finance and accurate and reliable forecasts for the business world.
Beyond financial advice, Kiplinger provides in-depth analysis of economic trends, investment strategies, and tax planning. It is an essential resource for both novice and experienced investors seeking to navigate the complexities of the market.
The platform also features interactive tools and calculators to help users plan their retirement, savings, and home budgets effectively, enriching their financial decision-making process.
8. MODESTMONEY.COM: Honest Financial Help Sites and Guidance
Visitors of Modest Money value the website for its straightforward and honest approach to money-saving. The website was started by an “average person” who wanted to demystify financial jargon and make personal finance accessible to everyone.
It offers a simplified and unbiased look at credit card deals, financial product reviews, and insights into personal finance strategies. Moreover, Modest Money provides practical budgeting tips effectively, reducing expenses, and investing wisely, making it a trusted resource for those new to managing their finances or looking to refine their financial skills.
CONCLUSION
Mastering personal finance management is key to building savings, efficiently managing bills, and enhancing overall life enjoyment. In today’s digital age, access to free, high-quality financial information is crucial for anyone looking to improve their financial literacy and decision-making skills.
With the vast array of resources available online, it’s important to choose those that are not only informative but also trustworthy. The top 8 best financial help sites listed here have been meticulously selected for their reliability and comprehensive coverage of various financial topics.
These platforms offer everything from budgeting tools to investment advice, catering to diverse financial needs and goals.
By leveraging these exceptional resources, you can gain the knowledge and tools necessary to navigate your financial journey with confidence. Best of all, these sites provide their valuable services free of charge, ensuring that financial empowerment is accessible to everyone.
Whether you are just starting or looking to refine your financial strategies, these top financial help sites will guide you toward achieving your financial aspirations without any cost.
Best 14 Financial Recovery Smart Moves
14 Smart Moves for Financial Recovery Success
Financial Recovery Smart Moves are essential, as setbacks are common, but with the right strategies, they can be overcome.
Certain happenings in life such as divorce, unemployment, lawsuits, or losses could lead to such financial difficulties. Consequently, we have to try out approaches that help us start over or stay ahead financially.
With that, you will be under no pressure and feel confident when handling your financials. Here are some ways to start over financially.
1. Track Your Spending
Many people are unaware of how they spend their income, leading to financial leaks in areas such as entertainment. By tracking your expenses, you gain insight into your spending habits that can identify areas where you can cut back. Here are some suggestions:
- Mint: This app provides a comprehensive view of your finances by linking to your bank accounts, categorizing your transactions automatically, and setting budgets. It’s great for seeing where your money goes each month.
- YNAB (You Need A Budget): YNAB focuses on giving every dollar a job, helping you to be intentional about every dollar you spend. It’s particularly useful for those looking to get serious about their budgeting practices.
- PocketGuard: This app simplifies money management by showing how much disposable income you have after accounting for bills, goals, and necessities. It helps prevent overspending.
- Goodbudget: Based on the envelope budgeting method, this app helps you allocate your income toward specific spending categories, making it easier to stick to your budget.
- EveryDollar: Created by personal finance expert Dave Ramsey, EveryDollar uses zero-based budgeting principles to help you track your spending and plan your budget down to the last dollar.
2. Create a Monthly Budget for Financial Recovery
Establishing a monthly budget is crucial for avoiding overspending and accumulating debt. A budget helps you allocate your income towards essential expenses and savings goals, ensuring you stay on track financially.
3. Stay Consistent with Your Financial Recovery Plan
Consistency is key when implementing financial strategies such as saving and budgeting. Avoid deviating from your financial plan to prevent falling back into old habits. Stay focused on your long-term financial goals to maintain consistency.
4. Automate Your Savings
Setting up automatic transfers to your savings account can help you build a financial cushion effortlessly. By automating your savings, you remove the temptation to spend money impulsively and ensure that you prioritize saving.
5. Increase Your Income to Aid Financial Recovery
Boosting your income through side hustles or skill development can provide additional financial stability. Explore opportunities to diversify your income streams and enhance your earning potential.
6. Invest Your Savings for Financial Recovery
Put your savings to work by investing in assets that generate passive income or appreciate over time. Investing allows you to grow your wealth and achieve long-term financial security.
7. Prioritize Debt Repayment for Financial Recovery
Focus on paying off high-interest debts to free up financial resources for saving and investing. Prioritizing debt repayment helps you eliminate financial burdens and move closer to financial freedom.
8. Overcome Financial Fears for Financial Recovery
Address any fears or anxieties surrounding money by seeking support and taking gradual steps towards financial empowerment. Overcoming financial fears is essential for making informed decisions and pursuing financial opportunities.
9. Get Organized for Financial Recovery
Organizing your finances and personal belongings can streamline your life and reduce stress. Start by decluttering your living space and organizing your financial documents to gain control over your assets and expenses.
10. Delay Major Financial Decisions for Financial Recovery
Avoid making impulsive financial decisions, especially during times of uncertainty. Take the time to research and evaluate your options before committing to significant financial commitments.
11. Seek Professional Advice
Consulting with financial planners or advisors can provide valuable insights and strategies for achieving your financial goals. Professional guidance can help you navigate complex financial situations and make informed decisions.
- Choose the Right Advisor: Look for certified financial planners (CFP) or advisors who have a strong track record and credentials. Ensure they are fiduciaries, meaning they are obligated to act in your best interests.
- Understand the Costs: Be aware of how advisors are compensated. Some work on a fee-only basis, others may earn commissions on products they sell you, and some use a combination of both. Choose the model that aligns best with your financial goals and needs.
- Prepare for Consultations: Before meeting with a financial advisor, have a clear idea of your financial goals, current financial situation, and any specific questions you need answers to. This preparation can help make the consultation more effective.
- Use Consultations Wisely: Discuss your financial goals, such as saving for retirement, buying a home, or setting up college funds. An advisor can offer strategies and products tailored to these objectives.
- Seek Recommendations: Ask for recommendations from trusted sources or check reviews online to find a reputable advisor. Professional associations for financial planners and advisors can also provide referrals.
- Regular Reviews: Once you choose an advisor, schedule regular meetings to review your financial plan and make adjustments as necessary. This ensures your plan stays aligned with your changing economic circumstances.
- Build an Emergency Fund for Financial Recovery
12. Ways to Build an Emergency Fund for Financial Recovery:
- Start Small: Set aside small amounts regularly, even if it’s just a fraction of your monthly income.
- Set a Target: Aim to save at least three to six months of living expenses, adjusting based on your circumstances.
- Use Windfalls Wisely: Allocate any unexpected income to your emergency fund. This can include tax refunds, bonuses from work, and earnings from side hustles like babysitting.
13. Declutter and Sell Unnecessary Items
Selling unused or unnecessary belongings can generate extra income and declutter your living space. Consider hosting a garage sale or listing items online to convert clutter into cash, additionally use proceeds from selling items you no longer use to second-hand stores.
14. Maintain a To-Do List for Financial Recovery
Why a To-Do List Works:
- Clarity and Focus: Simplifies complex financial situations into clear, actionable steps.
- Measurable Progress: Offers a visual way to track advancements, enhancing motivation.
- Accountability: Encourages regular review and commitment to set financial tasks.
How to Create an Effective Financial Recovery To-Do List:
- Prioritize Immediate Needs: Focus on urgent tasks like paying overdue bills or reducing debts.
- Regular Updates: Adjust the list as needed to keep it current with your financial situation.
- Use Tools: Employ apps like Todoist or software like Microsoft To-Do to manage and access your list efficiently.
- Assign Deadlines: Set specific deadlines for each task to ensure timely progress and prevent delays.
In summary, recovering from financial setbacks requires patience, discipline, and proactive planning. You can overcome challenges and achieve financial success by implementing these practical steps and seeking support when needed.
Key Takeaways:
- Track Spending: Identify areas to cut costs for recovery.
- Budget Wisely: Control finances with effective budgeting.
- Stay Consistent: Stick to strategies for long-term financial health.
- Automate Savings: Build a safety net effortlessly.
- Boost Income: Increase earnings through side jobs or new skills.
- Smart Investing: Secure your future by growing your wealth.
- Debt Management: Focus on repaying debts for financial freedom.
- Seek Support: Use professional advice and community help for guidance.
- Organize Finances: Simplify management to reduce stress.
- Informed Decisions: Make well-researched financial choices.
- Emergency Fund: Prepare for unforeseen expenses.
- Declutter for Cash: Sell unneeded items for extra income.
- Prioritize Tasks: Use a to-do list to stay on track.
- Maximize Benefits: Take full advantage of employer benefits.