Thursday, September 28, 2006

Zero-based Budgets & Retirement Plans

Dilema: Retiremment is around the corner and you haven't saved a cent. MSN Money has a great piece on catch-up savings strategies. A useful tip: A zero-based budget how-to.

"A zero-based budget means you start with the absolute essential expenses, and then add expenses from there until you run out of money," acording to the MSN article by Ginger Applegarth.

Budget priorities.

Stage One
*retirement contributions.
*debt obligations
*fixed costs for living essentials

Stage Two: Discretionary Perks
*entertainment (make drastic cutbacks as funds dwindle)
*creature comforts.

Other Catch-up Strategies

*Consider working for a corporation with a better retirement plan
*Start a part-time business
*Delay retirement
*Downsize your residence

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