Retirement may feel like it is impossibly far away. Preparing the financial means to support your retirement doesn’t need to be so hopeless or stressful! By diversifying your income, better managing your spending habits, and creating a concrete plan for your saving goals, you can feel more confident in reaching that retirement threshold.
Diversify Your Income Sources
A steady flow of income is essential for both present and future living. Having only one source of that flow may not be sufficient to save the required amount for comfortably living when you want (or need) that means of income to cease. Consider what other means you have for creating income—what are you passionate about, what resources do you have easy access to, what do you enjoy that could be potentially lucrative? Investments are an easy way to make money in the long run, but require wise decisions and thoughtful, thorough research. If investing is an intimidating endeavor, you can also turn your hobbies into jobs! Use your talents for creating, fixing, or teaching to add a few hours of independent work every week, and put that money straight into your savings. The money will add up quickly!
Understand Your Spending Habits
Take inventory of your finances! You should find out your current expenses so you can better budget during retirement. Becoming aware of your spending habits will allow you to reevaluate, reprioritize, and eventually help your income stay in your control. Plus, knowing what you need to spend your funds on, and the average percentage of your income that that requires, will help you form an idea of your budgeting for retirement (when you aren’t making money to spend).
Make a Solid Plan
Create—maybe with the help of a financial advisor—a concrete plan of action for both your saving and spending now, and post-retirement. Set a timeline for yourself! Make goals, checkpoints for how much money you will have saved by certain ages and stages of your life. Incorporate things like annuities to keep you on track! Determine what sacrifices you may need to make if you are short of those goals when the checkpoints come around. Make your plan realistic, but also a plan that will push you to work hard and save smart for the years ahead.
Don’t be overwhelmed by retirement savings! Be wise with your income and how you save it, and create a good plan to get you exactly where you want to be. Your saving process will be less stressful and more enjoyable for now and your future!
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