Everyone is looking for the best retirement advice. Investors want to know about the easiest and fastest way to get ready for retirement.
Investors looking for that silver bullet will be disappointed because there is no silver bullet when it comes to preparing for retirement.
Retirement prep is a process. It begins when you start your career and ends when you collect your last pay check on the day you retire. In between your first and last job, you need to stash away enough money to maintain your standard of living throughout your retirement years.
The best retirement advice anyone can give an investor is to understand the big picture. In addition to having good financial habits you need to understand that everything you do on a daily basis, in one way or another, effects your retirement process. How you spend, save and invest all effect your retirement. Even your credit effects your retirement.
The Best Retirement Advice: Watch Your Habits
Your Spending Habits
- Do you even know your spending habits? Start there.
- Track everything you spend for one month.
- Every time you make a purchase, even if it’s just a pack of gum, log it.
- Just like when you are on a diet, the experts say to write down everything you eat to see how much you are eating; the same is true with spending money.
- You may be surprised after this exercise; you may find areas that need improvement.
- Keep a budget; don’t venture off the budget.
- Make slight adjustments.
- If you buy coffee every day on the way to work, make it at home a few times a week.
- If you eat lunch out every day, bring your lunch to work a few times a week for a while to see how much money you save.
- It’s the little things that count, you may be surprised when you look at your spending habits more closely.
Your Credit Habits
- Learn your credit score.
- Improve your credit score.
- You will find your credit scores on your credit reports.
- Order a free credit report every year.
- You can order a free credit report from each of the 3 national credit reporting agencies once a year.
- Credit reports tell your financial story.
- A good credit score is above 750.
- Your credit score is used by financial institutions to evaluate you.
- With a good credit score you will pay less for almost everything you buy…which will provide you with more money for your retirement investments.
- There are many ways to improve credit score, learn them and practice them. How to improve your credit score starts with your saving and spending habits.
Your Saving Habits
- If you find extra money, don’t find something to spend it on, save it.
- Save money when you shop.
- Only buy what you need, not what you want.
- Save money on your insurances.
- Shop your auto insurance and home insurance at least once a year.
- Save money on your credit cards, pay on time, avoid carrying a balance to save money on fees.
- There are many different ways you can save money, you know your lifestyle so you would know ways to save that others may not.
Your Investing Habits.
- Do you understand investing? If not, seek help.
- If you don’t understand how to make investment selections in your 401k retirement account or IRA, that’s okay.
- Not asking for investment help is not okay, if you need investing help, ask for it.
- A bad investing habit is to do nothing.
- Your 401k retirement accounts, your IRA investments and your IRA rollovers are all a part of your retirement process.
- You need to understand your investments. Change a bad investing habit of not asking for help into a good investing habit of seeking help.
- If you have a 401k retirement plan, the 401k company may provide at no cost a financial planner for you to work with.
- Ask your Human Resource department.
If you need retirement advice ask for it. Good retirement advice will help you manage your retirement process.
The best retirement advice will not just focus on retirement, but also on your entire financial picture. Again, everything you do on a daily basis in one way or another affects your retirement. Start thinking that way.