We all know that we're going to have to retire one day. The question remains, what will your retirement be like. Finances and the amount of wealth that you have accumulated throughout your life will determine whether your retirement is everything that you dream of or a nightmare. Without the required retirement savings in place, the dreams of enjoying your retirement can cause you anxiety or even make you fearful of planning your retirement.
Being fearful and worrying about your financial situation when you retirement can either have a debilitating effect or a motivating effect. Choose to harness this fear and make it work for you. Think about how your life might be if you were forced to retire prematurely. What would you do? Would you have to become a burden to your children or family? If you wish to truly enjoy your retirement then there's no time like the present to begin to make financial plans so you can rid yourself of this worry.
These thoughts might not be very pleasant and you might want to avoid them but as the months turn into years, the reality remains that you're going to have to retire one day. Planning for that day is something that doesn't have to be dry or complicated. Seeing where you stand and where you want to be financially is simple. This is the way that we achieve any goal in life and your retirement goals should not be avoided.
A budget might be a good stepping stone to creating a retirement plan or a financial retirement goal that you can work towards. If you don't have a budget or if you haven't done one in some time, there's no time like the present to start putting some numbers on paper. Take that budget and use that as a rough goal for what your monthly expenditures are going to be when you do retire. Modify your budget to fit the lifestyle that you want to live when you retire. Maybe your house will be paid for and you won't have the monthly expense of commuting to and from work. Keep in mind that your retirement budget doesn't have to be exact. You can modify it the same as you do your monthly budget. The goal is to get a good idea of how much it will take for you to live on a monthly basis.
Once you have a dollar amount in mind for your retirement, you have a financial goal. Generating wealth through saving and investing is how you reach that goal. With your present day budget and your future budget in hand you are well prepared to see where you can find more money to make that retirement dream come true and begin moving towards that financial goal.
Reducing your spending and generating more income should be next on your lists of priorities. Eliminating debt as quickly as possible, especially any debt that involves interest payments should come first. Excessive spending as well as finding ways to live more cheaply should also be a consideration. Every dollar saved is a dollar that can be invested in your retirement funds and any additional money earned now through a part time job or a small business can be invested in your retirement savings.
That temptation to treat ourselves or to spend that extra money so we feel wealthy or appear wealthy to those around us is a very real temptation. Wanting to buy a new car or go on a vacation or buy a bigger house will only derail you and put you in worse shape financially. Keep in mind that wealthy people often don't show their wealth. They're willing to drive an older used car for a few years in order to accumulate wealth which then works for them to create more wealth.
Next, investing your money is order to generate more wealth and assets that will pay you back when your income ceases is what retirement is all about. Ultimately, being able to live off of the earnings from these assets is your best case scenario. Having huge amounts of wealth saved and allowing those financial assets to pay you without you doing any actual work is what your retirement plan should look like.
Investment assets that you might want to think about include mutual funds, stocks, your IRA and any tangible assets that are going to make you a profit in time such as real estate. Low risk stocks, bonds and accounts that diversify your savings over many different investment vehicles such as mutual funds are a great place to put your savings while tying that money up so you don't feel tempted to spend it even during difficult financial times. That money is your financial future and it shouldn't be touched under any circumstances.
Putting off planning for your retirement is something that many of us do. It can be unpleasant to take an honest look at where we are but once you see what your goal is you can do something about making your retirement dreams come true. The sooner you come up with a financial goal and begin working towards that goal the better. Procrastinating another year will only make finding a solution to fill the gap that you might seen in reaching your retirement goals more difficult. The peace that comes with knowing that you're doing something to bring yourself one step closer to achieving that goal can take all of that fear away.
Being fearful and worrying about your financial situation when you retirement can either have a debilitating effect or a motivating effect. Choose to harness this fear and make it work for you. Think about how your life might be if you were forced to retire prematurely. What would you do? Would you have to become a burden to your children or family? If you wish to truly enjoy your retirement then there's no time like the present to begin to make financial plans so you can rid yourself of this worry.
These thoughts might not be very pleasant and you might want to avoid them but as the months turn into years, the reality remains that you're going to have to retire one day. Planning for that day is something that doesn't have to be dry or complicated. Seeing where you stand and where you want to be financially is simple. This is the way that we achieve any goal in life and your retirement goals should not be avoided.
A budget might be a good stepping stone to creating a retirement plan or a financial retirement goal that you can work towards. If you don't have a budget or if you haven't done one in some time, there's no time like the present to start putting some numbers on paper. Take that budget and use that as a rough goal for what your monthly expenditures are going to be when you do retire. Modify your budget to fit the lifestyle that you want to live when you retire. Maybe your house will be paid for and you won't have the monthly expense of commuting to and from work. Keep in mind that your retirement budget doesn't have to be exact. You can modify it the same as you do your monthly budget. The goal is to get a good idea of how much it will take for you to live on a monthly basis.
Once you have a dollar amount in mind for your retirement, you have a financial goal. Generating wealth through saving and investing is how you reach that goal. With your present day budget and your future budget in hand you are well prepared to see where you can find more money to make that retirement dream come true and begin moving towards that financial goal.
Reducing your spending and generating more income should be next on your lists of priorities. Eliminating debt as quickly as possible, especially any debt that involves interest payments should come first. Excessive spending as well as finding ways to live more cheaply should also be a consideration. Every dollar saved is a dollar that can be invested in your retirement funds and any additional money earned now through a part time job or a small business can be invested in your retirement savings.
That temptation to treat ourselves or to spend that extra money so we feel wealthy or appear wealthy to those around us is a very real temptation. Wanting to buy a new car or go on a vacation or buy a bigger house will only derail you and put you in worse shape financially. Keep in mind that wealthy people often don't show their wealth. They're willing to drive an older used car for a few years in order to accumulate wealth which then works for them to create more wealth.
Next, investing your money is order to generate more wealth and assets that will pay you back when your income ceases is what retirement is all about. Ultimately, being able to live off of the earnings from these assets is your best case scenario. Having huge amounts of wealth saved and allowing those financial assets to pay you without you doing any actual work is what your retirement plan should look like.
Investment assets that you might want to think about include mutual funds, stocks, your IRA and any tangible assets that are going to make you a profit in time such as real estate. Low risk stocks, bonds and accounts that diversify your savings over many different investment vehicles such as mutual funds are a great place to put your savings while tying that money up so you don't feel tempted to spend it even during difficult financial times. That money is your financial future and it shouldn't be touched under any circumstances.
Putting off planning for your retirement is something that many of us do. It can be unpleasant to take an honest look at where we are but once you see what your goal is you can do something about making your retirement dreams come true. The sooner you come up with a financial goal and begin working towards that goal the better. Procrastinating another year will only make finding a solution to fill the gap that you might seen in reaching your retirement goals more difficult. The peace that comes with knowing that you're doing something to bring yourself one step closer to achieving that goal can take all of that fear away.
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