If we’re being honest, most of us don’t like to think of getting old, so this can often lead to putting off planning for our so-called golden years of retirement.
Although we may be aware of the fact that we should be making investments or saving for our future, we can often get caught up in our current lives and this just seems to get put to one side as something to think about later.
However, planning for retirement is something that we definitely have to start – the younger, the better, and it doesn’t have to mean focusing on getting old or even be something we have to spend a lot of money on. In fact, the financial choices made now can be made in a way that provides benefits in the present and in the future.
If you’ve ever found yourself putting off planning for your retirement, then this post is definitely for you. With state pensions going down and living costs rising, the traditional way of retiring is simply not enough for most people anymore, and it’s a good idea to start looking at other ways to secure your future – especially if you want to enjoy your retirement years by doing things like traveling or just focusing on the things you really love to do that you haven’t been able to do due to work commitments.
In this post, we’re going to give you some useful tips on ways that you can start planning for a good retirement now so you don’t have to worry about it closer to the time.
Create your plan:
You may be in a stage of life now where you’re single, but in a few years you may be married and have children, even so, it’s important to create a plan for what you want your future retirement to look like regardless of what your present situation is. Your plan is simply an outline of something that will help you work towards and set goals. It can always be adapted, and it’s expected that it will be, but in order to beat the overwhelm of creating a solid foundation for your future, then it’s absolutely crucial to have a plan in place.
Set clear goals:
Once you have a plan in place, then it’s important to know what your goals are for bringing this plan to life. For example, if your goal is to retire with $100K in the bank, then you need to make sure your plan is in place to align with this goal. Once you’ve set your goals, then it’s also a great strategy to share them with people instead of keeping them to yourself. Not only can this help you get advice and maybe even tips from those who are also planning or have planned for a successful retirement, but the motivation you’ll get from being openly accountable to your goals can really go a long way to helping you bring them to life.
Take action towards your goals:
Goals are wonderful things to have, but you can plan and set goals all you want – if you don’t take any real action towards them, then nothing will actually come to life. Actions you can take don’t need to be massive, but over time they will mount up when you take the same actions consistently. For example, putting $100 of your salary into a specific retirement savings account could be one way you’re taking action towards your end goal. Looking at ways to diversify your income such as through different investments or even business ventures can also be a good way to move you closer to your goals.
As with all things that are worth doing right, you’re probably going to need to have a bit more patience that you may normally have. Saving and planning for retirement is not something you’re going to see results with overnight, and you have to remember that this is a long-term plan, so you really shouldn’t expect overnight results, anyway. Although you should be focused and dedicated to your goals, if you find yourself struggling with patience, then it’s important to adopt strategies that can help you either detach from the outcome or automate your savings process so that it’s not something you need to be focusing on each month.
When planning for retirement or making any kinds of savings plan, you may find yourself with quite high goals, and whilst there’s nothing wrong with having big goals, it’s also important to remain realistic and start where you are right now. Remember, this is something you’re hopefully going to be doing for at least another 20-30 years, so trying to immediately buy and sell properties to flip or saving $500 a month is probably not going to be the best way to start. You’re better starting off small, and can even look at various private pension and retirement plans to see if that’s perhaps a better way to start putting a smaller amount away each month before you try and go too big straight away.
Also, you need to look at your current situation because you don’t want your future plans to have a negative impact on your financial life right now. Making sure you’re as debt free as possible, for example, is a better way to start because then you’ll actually have extra money available each month to decide what you want to do with. If you’re having any trouble with debt right now, then getting advice on the best way to deal with this from someone like McCarthy Law PLC could be a good first step.
Be prepared to take risks:
This doesn’t mean just jumping into every investment opportunity that presents itself to you, but if you’re never willing to take any risks – as most investments are, then you’ll possibly find that you’re not getting much further than you would if you didn’t take any actions at all. It’s important to weigh up the risks of investments, and possibly even seek the advice of a professional financial advisor or someone who’s made a good number of investments, but it’s equally important to be prepared to take some risks and reach beyond your comfort zone.
Start budgeting now:
Setting yourself and your family up for the future doesn’t always involve making investments that are quite big and scary, it can be simple things that you adopt into your daily habits now, such as learning to budget your current income. Things like cutting your monthly outgoings on things you don’t really need or use can be a great way to add more money to your monthly income that could be potentially available to go into savings for your future.
Nowadays you can look online and find pretty much anything you want – with so many businesses competing for your custom, it’s important to not allow yourself to get sucked in by flashy marketing and offers that may be too good to be true. If you’re looking for a solid private retirement and pension plan or high-interest savings account, it’s important that you take some time to shop around and look for the ones that really work for you and will yield you the best results.
Look at ways to boost income:
Having multiple sources of income is definitely one of the best ways to create financial security now and in the future. Whilst many people look to invest in things like property or the stock market to boost their income and create a more secure future. However, this isn’t necessarily the only way to boost and diversify your income, and also may not even appeal to you. Nowadays, there are many opportunities out there for adding extra income streams, such as starting an online business, so it’s really about finding what works for you.
Set yourself a deadline:
If you have a clear plan, goals and know what your action steps need to be, then the next thing you’ll need to have in place in order to make these work successfully is a cut off date for when you want to retire. Of course, this doesn’t need to be set in stone to the date because things can and do change, but having a clear idea of what age you’d like to be or by what year you’d like to enter retirement will really help you out a lot when it comes to planning your future and setting your financial goals for things savings and investments.
Always take advice:
When it comes to financing, and especially something as big as retirement and planning for the future, this is not the time to be stubborn about how independent you are – many people have come before you in this area, and whether they’re what you’d call professionals such as financial advisors or are just people who have personal knowledge and wisdom to share because they’ve done it themselves, these are people who you should be seeking out for advice as much as possible because trying to go it alone can really leave you wasting a lot of time, energy and even money. This doesn’t mean you need to take every piece of advice you get or that it will all be good, but when it comes to your financial future and security, knowledge really is power.
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