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4 Proven Tips on How to Successfully Plan Your Retirement

4 Proven Tips on How to Successfully Plan Your Retirement

We all would like to have financial security in the future, but most of us aren’t taking the right path toward this goal. Planning for your future isn’t something that should be taken lightly. A financial literacy survey found that 40% of the American population will never make enough money to allow them to retire.

That’s a huge blow as this number is very high. Almost 50% of the population will most likely have to work for a life-long period in order to survive. With that being said, you have to take action so you don’t fall into this group of people. As a way to help you out, I’m going to share some proven tips with you to help you plan your financial’s future.

1. Use your money wisely.

As soon as you start working, you should plan how to utilize your money in the right manner. I know you may like buying beautiful things, but you should also put in your head that you’re making someone else wealthier as you’re lowering your saving. Assured Retirement Group states:

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Budgeting helps you manage your cash flow so that your income remains higher than your expenses.

However, I’m not claiming that you shouldn’t buy things you’re in need of, but you should be responsible as to how you’re spending your money. Buy things you need instead of buying those you want. There’s a big difference between these two. Once you start doing that you’ll be surprised to see how much money you’re actually saving which would’ve been gone down the drain.

2. Reduce your household costs.

If you’re about to be retired and no longer have the need for a big house because your children are all grown ups and out on their own, you’ll have to cut down on your housing costs. There’s no justification for spending money on something that’s not needed while you could be using that money for your much needed needs.

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Try to pay off all your debts or at least most of them if you can. Going into retirement debt free will definitely gives you peace of mind. Your retirement years should be the period of time where you’ll only have to enjoy the rest of your life. It shouldn’t be some additional years of you having to keep thinking about your expenses and debts.

3. Investing is far superior than saving.

It’s always a great idea to open a saving bank account; it gives you a form of a safe storage to put your money into. Though they claim that their customers earn interests on their saving, it’s really not significant if your account’s size isn’t a very large one.

Your best bet to make profits with your hard earned money is by investing. There are various ways you can take to invest your money. For example, you can buy stocks, you can open a small business, or you can open a CD account instead of a saving one. These are just a few options that you can take advantage of.

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4. Seek for professional help.

Oftentimes people are looking for suggestions to know whether or not they should start planning for retirement. In reality the earlier you can start the better it is for you. It would be in your advantage if you can start planning your retirement at a younger age, which would enable you to stop working before the average age.

If you’re interested to take the initial step and don’t know how to approach that, you can hire a Financial Advisor at a very reasonable cost to help you through.

Your current investments, Social Security benefits, or pension plans will play a huge role in this process if you’re not currently working. That’s because you’ll need a source of income in order to start planning your retirement. If you don’t have a source of income you can’t think about retirement.

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Overall

Many people won’t be able to afford going into retirement; however, it’s something that we all would like to achieve in our lifetime. If you’re working or if you have a source of income, you shouldn’t have any problem planning your retirement.

I’ve shared some proven tips with you throughout this blog post, taking some of them in consideration can take you a long way with your plan. Be smart about it; don’t wait the very last minute to start thinking about retirement. It just doesn’t work that way. Good luck with your plan, I’m hoping you have a successful retirement.

Featured photo credit: Travel Planet via travelplanet.in

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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