Top 3 Lessons To Reach Retirement
Lesson #1 – Making Money
Making money is hard work. Enduring traffic jams, uncooperative bosses and sassy co-workers can be strenuous. The main reason you do it is so that you can put a roof over your head and food on your table. If you take it one step further and plan properly you can also put enough money aside to eventually afford to quit working and retire someday.
You only get so many years to make enough money to pay for your daily living expenses plus save enough for retirement. Use those years wisely. Sloppy finances during your working years may prevent you from achieving your well deserved retirement.
Lesson #2 – It’s All In The Spending
Spend less money, need less money.
The best way to keep more of your money is to spend less of it. Learn to be frugal with your money, it pays off. Financial frugality pays off at the end of your career. You will have more money during your retirement years than you will be able to spend. That’s true financial success.
Lesson #3 – Retirement Starts With A Financial Road Map
You will reach retirement age naturally. Unfortunately you will not generate retirement income naturally, that will take some effort on your part.
When you take a vacation you map out the course so you know where you’re going and how to get there. You need to do the same thing to reach your retirement someday. You get off the working track and onto the retirement track by following a financial road map.
Your Destinations: When, Why, How Much and How
When To Do It?
Decide when you want to retire even if you are just at the beginning of your career. Having a predetermined target date in mind will keep you focused.
Why Start Early?
The best time to start saving for retirement is when you get your first paycheck or shortly thereafter. Time is on your side when you are starting out. Compounding interest is the most beneficial to you when used over a long period of time, for example your entire career.
Locate a retirement calculator. Determine how much money you will need to save in order to afford retirement. You need a figure to aim towards. Once you determine your retirement figure make a commitment to yourself that you will do whatever it takes to reach that figure.
How To Do It?
Squeeze Your Money
The best way to find extra money to invest is to develop good money management skills.
Managing your money well means learning the value of money. Learn how to live on less. Allocate some fun money for yourself. It’s perfectly okay to indulge, just do it responsibly. Set an indulgence limit for yourself.
Do It Automatically
Automatically invest any extra money you receive from raises, bonuses and tax refunds into your retirement plans. You will not miss the money.
Only You Care
Nobody wants your retirement as bad as you do. You need to make good financial choices throughout your working years. You do not have to be a miser, you just have to spend responsibly. You can do it.