5 simple habits and strategy you can start today for a better tomorrow.
Have you ever thought what life will be like when you turn, say, fifty five or sixty? Do you think you’ll still be able to live the same lifestyle as you do today? Well, the answer really depends, because the way you live your life today plays a major role to determine what your life will be like when you’re older. Here are some habits and strategy you can follow if you want to live a comfortable retirement.
1. Live below your means
If you want your retired lifestyle to be more or less the same as your lifestyle today, then you need to start living below your means. Set aside a portion of your income and do it consistently. When you stop having stable income, this is the money that you will live off from. And if you make a habit of living below your means starting from now, you will be used to a more humble lifestyle. So, you won’t need to tone down your lifestyle drastically when the retirement day comes.
2. Determine how much you need for retirement
Calculate how much you spend for daily needs from now, so you can estimate how much in total you will need to save for retirement. Although most people would like to save at least $1M by the time they reach age sixty, each person may have different or special needs (medicals, mortgage, traveling, or others) so make sure you know what you want to do when you reach retirement age.
3. Calculate how much to save
Now that you have estimated how much you may need for retirement days, you need to start saving consistently. Remember that the earlier you start, the less you need to save each month. If you’re a little behind, you need to start immediately and check here to find some fun ways to save money.
4. Invest, invest, invest
Sometimes savings can only go so much. To make more money and really prepare for your retirement days, you may opt to having assets. There are many different assets you can choose: pension plan, health insurance, bank deposit accounts. You can also invest on properties like house or apartment if it fits you better. The choice is yours!
5. Get to know your risk tolerance
When talking about investments, one also needs to know their risk tolerance. Talk to your financial advisor or find some online tools to get yours. If you start investing at earlier age, you will be directed to a conservative portfolio with lower risk typically. But if you start late and your timeframe is rather short, you may find that equity portfolio suits you better.
No matter how old you are when you’re reading this article, here’s a simple quote to live by: Save as if you will retire today.