The Association for the Advancement of Retired Persons (AARP) turns fifty this year, and I'm about four years older than this organization. I'm happier than ever with this group, as I learned from them today I might live to see age 85, since I made it to age 50. Can you imagine? I may live to see the year 2035, much to my daughter's chagrin.

At the moment I find it difficult to believe that I'll live another quarter century or more. After all, I barely made it this far and just look at this face! My mother looks younger than I do and she's?well, she's old enough to be my mother.

On the other hand, I'm happy to know that I have a few more decades to accomplish what I failed to do within the previous thirty-five years. This includes saving money, saving money, and saving money. So, while my daughter might not be thrilled about sharing this planet with me for a few more decades, she might be grateful about what I intend to accomplish during that time.

No matter your age, some of these tips might help you milk the most out of your next quarter century or so:

Buy a Home: Yes, I finally purchased a house. And, I took out a 30-year fixed-rate mortgage to buy this great twelve-year-old four bedroom, two-bath sweetie with a walkout basement. I could pay this mortgage off like a 'normal' person and it would be paid off five years before I die. Or, I can make double payments and pay the house off in less than eight years.

Several factors will help me to decide whether to pay off early or not. One tool I'll use to make this decision is this mortgage calculator/amortization table. Toss a couple numbers into this calculator and run the table to realize how quickly you could pay your mortgage off even if you just made one extra payment per year.

If you're a renter and you think you can't afford a home, you might be wrong. The housing market has reached the point where some renters have found bargains, especially in the very homes they rent. Investment homes aren't proving profitable for some investors, so landlords might be open to liquidation. As a homeowner, you can take that little gem and make it profitable through tax write-offs on your insurance, taxes, and more.

Two Months' Living in the Bank: If you don't have enough liquid cash to pay for two to six months' worth of bills if you lose your job, then start saving now. Just the idea that you have that money in the bank will help you sleep better at night. Keep it in savings, where you'll earn some interest. Remember that this is an emergency fund, and it needs to stay liquid.

Pay off Credit Cards: Yeah, I sound like a broken record. But, how else are you going to save? If you pay off the credit cards, the only things you have left to pay are the rent/mortgage, utilities, and that darn school loan that won't seem to go away.

Think about this - if you owe $2,000 on just one card and you pay OVER the minimum payment (say $100 per month instead of $60) at an 18% interest rate, then it will take you 166 months to eliminate that debt. 166 months translates into almost fourteen years. In that time you'll pay $1,798.80 in interest, or almost 95% of the amount you owe now. Plus, you'll be in the minority if you pay off your credit now, and that might look good when you go to apply for a mortgage loan.

Pay off the School Loan: Ok, I'll admit that I thought I could string this loan out forever, but what a waste of good money on interest rates. Granted, I need the tax write-off at the moment, but what happens if I decide to quit all my jobs and join the Peace Corps? Hmmm?if I add a few more dollars to my monthly payment I can pay it off in ten years rather than in fifteen (I wonder if the Peace Corps wants someone who's over age 60?).*

Save Enough to Live off the Interest: Granted, $500 or more per month might not pay an electric bill in 25 years, but - then again - interest rates on money markets might rise over the next quarter century or so as well. So, if I can put $100,000 into a money market fund, I might be able to use that interest as a reason to enjoy life more.

If I set aside $1,000 per month for ten years at four percent interest (conservative, yes, but practical), I'll end up with $149,614.58. That's not shabby, eh? And I even allowed for a 30% tax rate and three percent inflation. If I didn't calculate for taxes and inflation just to envision what kind of money I could expect per month on a four percent interest rate, I would pull in close to $500 per month on that $150,000 savings.

Invest in the Stock Market: This is the capstone to a diversified portfolio. Investing in the stock market especially works well on a long-term basis. I won't go into how much one can gain or lose in the stock market, as the variables are far more extensive than a flat-out compound interest rate earned in a money market fund or savings account. But, if you do your research and leave that money alone, at the end of ten years you might be happy that you chose to diversify.

My next decade will be busy - I'm going to pay off my school loan, keep those credit cards paid off, stash some money in a money market fund and into the stock market each month, and try to double up on house payments. If everything goes well, I'll be worth close to a quarter of a million dollars in 2017. And, even on a conservative basis, I may be a millionaire in 19 years.

That leaves about 15 years for me to enjoy my efforts. My daughter feels that fifteen years is just enough time to blow it all before I keel over. C'est la vie!

Until Next Week,
Linda Goin

* For those of you who aren't in the loop, I received my MA at age 50. My suggestion: go to school when you're young so you don't carry a school loan into retirement!