Still In Debt? How To Still Create Wealth:
"I'll do it later."
The thought about creating enough wealth to comfortably retire on can be daunting to those living with student loan debt. However, just because you are making monthly payments does not mean you are unable to plan for retirement. Here are four low-cost ways that you can begin preparing for your later years.
1. Get Covered
Your budget should have insurance built into it. This not only includes health and auto, but also life and disability insurance for you and your family. Life and disability insurance can create a safety net for your family members in the event of a tragic event and can provide financial stability for them regardless of your current economic status. Ask your current insurance agent what sort of plan they can offer you. In some instances, they may be able to discount your current insurance payments.
2. Create Your Documents
If you are married or have children, you need a will. Because of the ramifications they have on your children’s custody, your burial, and your healthcare decisions, you should have your basic estate planning documents in order no matter where you stand on the economic spectrum. These documents are always able to be modified over the course of your life, so don’t have to worry about tying yourself down if you change your mind later.
3. Pay Down Debts
This may be obvious, but paying down your high-interest debts aggressively can open up more flexibility in spending for you and your family. This can allow you to save more money faster. The sooner your debts are paid off, the less creditors you will have and the greater an opportunity you will have to create generational wealth.
4. Investing
If your debts are low in interest, it may make sense to begin putting aside a portion of your paycheck not only for a rainy day fund, but also for investing purposes. Consult an expert to see how you can take advantage of beneficial tax treatments in a ROTH or traditional IRA. Making sound investment decisions now will have compounding effect over time and can help create generational wealth for you and your family.