When a person is considering retirement, there are many decisions that must be made. What is the right age? Can I afford to pay my expenses and still maintain my current standard of living? Am I old enough to be eligible for Medicare? Will I, like many others before me, have to return to work to make ends meet? This is the time to carefully examine your finances and determine if you can afford retirement.

One of the main sources of most retiree’s income is their social security checks. This amount will fluctuate depending on your age at retirement and your earnings up to that time. Social Security has been mailing annual estimates to everyone for a number of years. They are, however, estimates and cover just early retirement, full retirement age, and retirement at age 70. Should you want to retire at some point in between these years, you would have to guess at what your social security income would be.

In an effort to help retiree’s make a sound financial decision, the Social Security Administration recently went online with a Retirement Estimator. This allows workers to see what their expected levels of payments will be for all possible retirement ages. This estimator is available at www.socialsecurity.gov/estimator. After you provide specific personal information, the system can calculate your benefit based on your retirement date and current earnings. It will also provide information as to how these payments will change if your earnings increase or decrease. Before making the decision to retire, it is important that you have a realistic view of your finances versus expenses.

Americans are spenders, not savers.  Everywhere you look we are buying and spending.  We believe we need all of these “things” to make us happy but this is not true.  Unfortunately, the one thing we really need in our lives is financial security and very few of us have attained it.  This is as good a time as any to refocus on our “wants” versus our “needs” and form a solid definition of each.  Once that is accomplished, maybe we can begin to address our inability to save and start to correct that situation.

Consider trashing many of those catalogs we all receive in the mail.  The main purpose of these catalogs is to show us what each company can provide to improve our world in one way or another.  Maybe it’s time we start spending our time doing things we enjoy, such as going for walks or visiting with friends, rather than looking through catalogs at items we don’t need and can’t afford.

When you are tempted to make a purchase based on the justification that you deserve the item, try visualizing a month without a credit card bill or making an extra savings deposit to your account. 

Choose an extravagance that will make you feel good.  Also, begin evaluating those that are really not necessary in your life.  Everyone needs a treat regularly, so choose what you want yours to be.

Consider changing your lifestyle to adjust to both the economy and your new habit of saving money.  Instead of a night out at the movies, rent one and invite friends over.  You might be surprised at how much they, too, will enjoy an evening’s entertainment that easily fits the budget.

Hold family meetings to discuss the spending plan that will enable everyone to save more.  Consider what sacrifices can be made that will result in additional savings.  Working towards a common goal will be good for everyone.

Discussing your finances with others is very good therapy.  Many people keep their money problems a secret but reality is that most of us have them and sharing them with another makes them easier to deal with them.

The economy is wreaking havoc on all of our lives but, of course, some people have it much harder than others.  Some are faced with job loss and, even worse, to have unemployment insurance expire when they still have not found a job.  If this is the case in your family, or there is another cause of strained finances, it is important to share it as a family.  Parents cannot try to ignore the situation or fool the children, nor should they try.  Explain the situation to the children and discuss ways that they can help you during these tough times.  Everyone should make a contribution to dealing with this situation.  The most important thing is that everyone maintains a positive attitude toward dealing with this current problem.

It would be a good idea for the family to meet once a month to discuss finances and how various approaches are working.  Make it a festive evening by serving a family favorite such as a home-baked pizza.  As a family you can discuss the difference between things you need and those that you simply want.  Invite the children to make a list of wants for the month and have them place a star next to the most important ones.  Have them think of ways they can save some money towards these items and encourage them to save for what is important to them.

A family piggybank, an old jar, or anything available to everyone is a good start to family savings.  Change can be placed here regularly and extras, such as money received for a birthday, should also go into the jar for these special items. 

Invite your family to contribute money-saving ideas.  Depending on the children’s ages, they may be able to baby-sit or find a part time job.  Younger ones can help find cost savings coupons and cut them out for the family shopper.  As a family, plan outings to the local library to obtain free books, DVD’s, CD’s and even attend free programs.  Another great outing is a visit to a local park where you can enjoy a picnic and everyone can play games, etc.

Surviving these hard times together will provide wonderful lessons for your children and bring your family much closer as a unit.  Consider this to be a great benefit of your current financial struggle.

Prices are soaring and salaries are stagnant. How do you cope with all of this? Consider the following as possibilities to help save money and enable you to survive in today’s economy.

Think about budget cuts: Plan your meals and shop with a list. Do not purchase anything that is not necessary for the next week.

Reduce restaurant visits. Dinners out are very expensive and do not fit into the budget on a regular basis. Reserve these for special occasions.

Review your debt and be sure you are paying off the most expensive of these. High interest credit card debt must go before others, so concentrate the bulk of your payments in that area.

Plan for an emergency. If possible, put aside $100 a month for your emergency savings fund. Your goal should be to cover at least three months’ living expenses in this account.

If you are considering selling your home, think about renting. Today’s market is very poor and most homes are not selling at this time. Waiting it out may be worth your time.

If your employment situation seems at all doubtful, consider additional education, networking for other positions, and watch newspaper ads. It is always a good idea to be prepared for such a change.