This is a crucial question, particularly when it comes to achieving your long-term financial goals.
If you spend less than you earn and can save the difference, retiring at a reasonable age is not just possible, itâ€™s probable. Therefore, it is worthwhile to take a few minutes from the busyness of everyday life and answer this question for yourself. Here are two steps to determine whether you are living within your means.
- Dig out your 4 most recent bank statements for the account into which your paycheck is deposited and from which your bills are paid. Is the ending balance on these statements increasing, decreasing or staying the same?
- Grab all of your credit card statements for the last 4 months. Are the balances on these cards increasing, decreasing or staying the same?
The Ascensus calculator is available within your 401(k) website and allows you to check your retirement plan within a few minutes. Here is an article (Retirement Calculator) with more information about this valuable planning tool. Advisors from Thompson Wealth Management are also available to assist you with your retirement plans.