Retirement With Financial Freedom

No one will invest money for your retirement, only you can do that.  If you are serious about saying “bye-bye” to your workplace someday, you need to take retirement planning seriously, right now.   If you want to enter retirement with financial freedom, you must make your retirement planning urgent!!!

The only financial purpose that you should have between this minute and the day you hit retirement age should be retirement investing.

  • Message In A Bottle

If you want to retire on schedule with enough money to last as long as you do, you will need to post urgent messages all around yourself.   Attach a message to your cubicle wall, your refrigerator, your bathroom mirror.   Constantly remind yourself that the purpose of working is to save money to someday quit.   No one cares about your retirement as much as you do.

Financial Freedom Adds Up To Zero Debt

The best financial position of be in when you think about retirement is no mortgage payment, car payment or credit card payment…this is sometimes referred to as “debt-free”.   Entering retirement with debt is a curse.

  • Save Yourself|Dig Out Now

If you dig yourself out of debt before retirement, you will put yourself in a position to be ready for whatever comes your way.   When you are debt free, you will be able to survive any financial tsunami’s that hit.   The economy is ever-changing and when you retire, your pay checks come to a complete stop, be debt free, be ready for anything.

Financial Freedom | Zero Money Concerns

The number one concern investors have is whether or not they will have enough money to some day leave the workforce.   Can you afford to eventually retire?   Are you concerned about having enough money?

  • Make A Calculation

To address your money concerns use a retirement calculator.   Investors use  retirement calculators to determine a target amount of money.   A retirement calculator will not save for you, it will just lay out how much you need to save.    The calculator will ask for your estimated time horizon, risk tolerance level, current amount of retirement contributions and current value of retirement investments.

Where’s The Money?

To be financially free when you enter your retirement years, you will need enough money to support yourself for perhaps 30 years.   You need to start that process long before your retirement date.   To find enough retirement money you will need to aim your entire financial structure towards your retirement during your working years.

#1 – Avoid Debt To Begin With

You have to deal with retirement planning now

Image by ramyo via Flickr

By avoiding the debt trap, you save yourself so much money in fees, interest and penalties.   You could finance much of your retirement by avoiding debt charges on auto loans, student loans, mortgages, credit card debt.

Self-discipline is the key to avoiding debt.   Become a need buyer vs a want buyer.   You need a purse; you want a $300 one but a $30 one will do just fine.

#2 – If Can’t Avoid Debt, Go To Plan B

There may be certain types of debt that you cannot avoid; such as a mortgage payment.    But there are other types that can be avoided with some financial planning on your part.   For example by changing your spending habits you can avoid credit card debt.

  • Plan B

If you are in debt, paying interest, at least save some money on fees and penalties by always paying on time and never missing a payment.   Late payment fees and delinquency charges are very expensive and a waste of good retirement money.

#3 – Do It Right|Budget It

You can live on less if you follow the guidelines of a budget.   When you curtail your spending, you will have more money to invest into your retirement accounts.

Budgeting sounds so elementary, but it works.   All a budget does is schedule your spending.   If you so much money for groceries, stick to that amount, don’t cheat.  If your mortgage payment eats up a certain amount of money, you have the remaining balance for other purchases, don’t cheat.

#4 – Put More Money To Work

Pick the right investments and more of your money will be working for you.   Investments with high fees and high expense ratios will eat away your investment money and leave you with less money for growth.

All mutual funds have expense ratios, become familiar with yours.   Expense ratios can range from .02% to 3.00%, that’s a big spread.   One way to lower expense ratios is to invest in index funds.   These are a type of mutual fund that tracks a market index.

You will eventually reach retirement age, we all do.   Will you be ready once you do?   The choice is yours.   You have your entire working career to save some money from each pay check, the question is, will you?