It is as crucial as ever to have your finances in order and to have a clear retirement goal in place because the world is something of a mess. Inflation continues soaring, and the cost of living is enormous, with energy and grocery costs eating a massive hole in the available funds of people worldwide. Reaching your 50s often means more financial freedom, but many people in their 50s neglect to look into their financial situation and fail to plan for retirement; the latter will sneak up on you faster than you would think. Fail to prepare, prepare to fail, as the famous saying goes.

Have a Clear Yet Detailed Budget

Budgeting is essential in all walks of life. It does not matter if you are a single person living on the breadline, a financially secure person that has fully paid their mortgage, or someone running a business. You simply must know how much money you have coming in, going out, and leftover at the end of each month. This is where a detailed budget comes in; creating one is a relatively simple task. Knowing your expenses and comparing them to your projected income allows you to plan effectively for the future.

Start by listing all guaranteed income streams. Only use your guaranteed income for this stage. Avoid bonuses, dividend payments from the NASDAQ or other investments, or any income you receive from other ventures, such as renting out a property. Now go through your bank statements with a fine-toothed comb, listing every expense. Your regular outgoings will make up most of your costs, like rent and power. However, remember one-off or infrequent purchases like birthday and Christmas gifts, coffees on your way to work, or the occasional use of sports betting sites. These rare costs significantly add up and eat into your budget. For example, buying a Starbucks coffee every day on your way to work may seem cheap at only $4, but that works out at $1,000 a year if you work 50 weeks a year! You would not turn down a free $1,000 if someone handed you a check on January 1 every year, would you?

Aggressively Pay Down Debts

You want as little debt as possible in the run-up to and during your retirement, so it is vitally important to aggressively pay down any debts you have incurred over the years. Your mortgage will be your most considerable debt, so making overpayments to pay this off before you step away from your 9-to-5 job is a good idea. Removing your largest financial burden guarantees a roof over your head even if your budget reveals you do not have much monthly disposable income.

Focus on short-term debts if you want to reduce your overheads. Credit cards have notoriously high interest rates, and paying the minimum each month can take 20-30 years to pay off balances. It is a similar story regarding unsecured loans, such as those for cars. Pay these off as quickly as possible because vehicles depreciate, meaning you will pay far more than your vehicle is worth when the finance is settled. It should be evident that you should avoid, if possible, adding to your debts once you hit your fifth decade on this beautiful planet.

Make a Will, Set Up a Lasting Power of Attorney, and Have a Funeral Plan in Place

Everybody likes to think they will live forever and often avoid the seemingly morbid discussions of wills and power of attorney. Unfortunately, we are mere mortals, and none of us get out of life alive. It is sad to think about, but getting this side of your life sorted well in advance is highly recommended. Your loved ones will be going through a torrid time when wills etc., come into play, so they will welcome having these things in place.

Having a will helps distribute your estate and removes an unfathomable amount of stress. The same is valid for nominating a power of attorney. Our lives can change in an instant, so planning for a different future from the one you envisage is a good idea. Lastly, the average funeral cost in the United States is between $7,000 and $12,000. Having a funeral plan paid for takes away this criminally large expense from your family at what will be a difficult time in their lives.