WHAT IF I NEED TO USE MY RETIREMENT SAVINGS

Your retirement savings are earmarked for retirement

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.  Those savings should not be looked upon like a revolving door savings accounts.  There are people who do have savings accounts that they literally use as checking accounts.  When you use your savings account in that manner, there are a number of things happening.  One you may be putting too much away in savings and leaving your expenses uncovered because you are trying to save larger sums of money.  Second, you might be overspending and not living on a budget.  A budget cannot be effective when it is only in your mind, it must be formalized.  You can use an automated on line tool and if that is too high tech for you, the old fashion pen and paper will do just fine.

Formalizing a budget, putting something on paper makes it real.  Having a budget fine tunes what you have coming in and what must go out.  If you start out with your expenses being more than you income, then adjustments must be made quickly because that is simply a no win situation.  Normally you may not be able to change your rent or mortgage circumstances immediately, but there are some other things that can be changed.  Perhaps, you are eating out more than you can afford to – stop it.  You may be doing too much shopping for clothing and other items that are non-essential.  There is no sugar-coated answer that will help you –  simply stop it.  If things are just too out of balance you may even have to think about making adjustments in your living arrangements.

When your expenses outweigh what is coming in on the income side, you are riding a downward slope.  Although the slope is headed down, you can turn it around.  The best way out is to stop living beyond your means.  It is not important what others think of you or about you when it comes to money and managing your finances.  Many Americans rush to own a Mercedes Benz or some other luxury car because of what friends and neighbors are driving or some social group you are a part of.  Those views of yourself and the world will  not help you to live comfortably in retirement.

Analyze your situation carefully and honestly.  Determine what you can do and what you cannot do, not what your friends and neighbors are doing.  They do not fit into your scenario because reasonably speaking they are not going to share their resources with you.  After evaluating your situation make every effort possible to save some money.  If you can only save $5.00 per month and never touch it, then do it.  Saving a little and not using it is far better than saving more than you can afford and withdrawing the funds just as soon as you deposit them.

P.S.  Always Remember to Share What You Know.

Dianna Tafazoli