The thought of retirement can be Daunting there is always an underlying fear of how to keep yourself occupied after years of adhering to the same routine between work and home. Almost everyone has a dream of what their life will look like after they retire.
Whether it’s basking in the Tuscan sun or roaming across Asia to many people it’s just that a dream. It’s almost impossible to enjoy retirement without financial security. With these six tips, you can ensure that you’re one step closer to living your dreams and retiring wealthy.
“Come up with a game plan to tackle any debt before aggressively contributing to your retirement plan. This will ensure that you’re able to put yourself on the right path, one with focus.”
Write Down a Plan
Make your plan tangible and write it out. Include as much details as possible, such as your income and other relevant figures.
Come up with a game plan to tackle any debt before aggressively contributing to your retirement plan. This will ensure that you’re able to put yourself on the right path, one with focus. Writing down your plan will also allow you to come back and adjust it when needed. A 10-year study by Harvard Business School showed that participants with written goals produced 10 times the results when compared to those without clearly- defined goals. Don’t just plan it, pen it.
Out of mind, out of sight
Saving money is difficult. Whether it’s coping with an unforeseeable circumstance or buying something nice for your anniversary, something always seems to come up that requires you to spend more than you planned. To avoid using these as excuses to spend rather than save, try automating your savings. Calculate how much of your income you can put always while still comfortably managing your daily expenses. Each month, your bank should be able to deposit a set amount into your savings account, no questions asked.
Save now, Live later
It’s hard to become rich if you spend a lot of money. While it’s always nice to have the finer things in life, if you want to retire wealthy, the finer things may have to come a little later. Streamline your lifestyle in preparation for retirement. Find a balance in your monthly purchases and focus on building your assets and adding to your savings. Keep your budget steady, regardless of expected future salary increases. And disregard the need for that new iPhone.
Invest Accordingly
Familiarize yourself with stocks and property. Your first step should be a consider your company’s retirement benefits. To increase your chance of retiring early, consider supplementing your retirement savings account with a brokerage account suggests Dana Anspach, a CFP and CEO at Sensible Money. These after-tax accounts allow you to buy and sell stocks, bonds, and currencies. Unlike many retirement accounts, they also allow you to invest as much as you want and withdraw money at any time. Remember, if you avoid investing because of your life expenses getting in the way, your expenses are too high.
Every Dime counts
Earn interest to accumulate wealth. Avoid paying interest to compounding debt. Think about a side job to increase your cash flow. Make the most of any skills you may have, like writing, craftwork or painting, to make a little extra money. When it comes to preparing for retirement, a little goes a long way. Be aware of the fees that come with retirement plans and mutual fund accounts and find a way to minimize them. You can take risks, but it’s important to find a balance between security and recklessness. Don’t let yourself be controlled by fear but avoid making choices that could leave you with nothing.
Stick with it
There are countless articles and other materials preaching tips and tricks to retire wealthy, but they won’t work if they’re not effectively implemented in your everyday life. When creating a plan, it’s important to follow through. Make a point of contributing to your savings, even when you may not want to. Consider coordinating your plan with your spouse or partner, especially if you want to retire around the same time. This will ensure that you’re both on the proper path to enjoying a wealthy retirement.
Retirement doesn’t have to be a difficult transition. The right steps in the present can contribute significantly to a wealthy future, one where tropical destination are an option, not a goal.
Good luck, and happy saving!
Tasnia Nasar | Contributing Writer
