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13 Practical Tips For a Better Retirement

13 Practical Tips For a Better Retirement

“How much money will I need for retirement?” If only someone could look into a crystal ball and tell us.

While everyone’s retirement needs are likely to be different, the reality is that enough will probably never be enough, and people delay saving for a better retirement for many reasons, such as:

  • They believe that they might not reach retirement.
  • They assume things will work out and that their pensions or superannuation will cover their needs.
  • They generally believe that there’s plenty of time to save for retirement later.

Saving for a better retirement

In reality there isn’t a best time to start saving for retirement. Earlier is better, but now is good. You need to either find a way to make more money, or find a way to come up with a regular amount of money and put it into a savings account or other investment each month if you really want a better retirement. And while you are busy working hard to save money … don’t forget about your health and well being too. Here are 13 practical tips for a better retirement.

1. Keep a record of your monthly spend

Understanding what you spend each month—and where that money actually goes—means that you can can decide what’s essential versus what’s not entirely necessary, and then figure out ways to save money.

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There’s no better way of understanding how much money you need to live than by keeping track of what you spend. To start with:

  • Write down all your monthly debits and standing orders going out of your bank account.
  • Keep all your receipts in an envelope or a kitchen drawer and tally them up at the end of the month.

2. Start a budget sheet

Take a sheet of paper and draw up three columns:

  • From the results in Number 1 above, write down all the expenses that you’ve recorded in the first column.
  • In a second column write down ways you could reduce or eliminate that expense (if the expense is not essential).
  • In a third column write down the potential monthly saving.

3. Downsize your house or reevaluate your house payments

If your children have left home, the family dog has died, and the pet rabbits are no more, then is it really necessary to live in a large house on a big block? Considerable savings can be made by moving to a smaller house, including electricity costs, water costs, insurance fees, rates, and the big one … your house mortgage or bond payments. Write down your current costs and speak to a financial advisor or realtor to get an idea of what you could save by downsizing. If you don’t want to downsize, then consider your house payments, and see if you can create a plan to eliminate your monthly mortgage or bond payments before you retire.

4. Cut down on entertainment expenses

Entertainment is necessary, but do you need to eat out several times a week or go to the movies when you could hire a DVD?

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  • If you eat out twice a week, could you eat out once a week or have a Chinese or Indian takeaway instead? Better still, resolve to have a date night, and learn to cook a new or healthy meal at home.
  • Likewise, cut down on incidentals such as the number of coffees you buy each week.
  • Perhaps give up the magazine subscription and borrow magazines from the library instead.
  • Rent DVDs rather than going to the cinema.

Take a few minutes and write down what you could save over a year—you might be surprised. Once you get started, you’ll find lots of inventive ways to cut down entertainment costs, and you probably won’t feel you’re missing out at all.

5. Keep fit

Exercising regularly and eating healthy meals are like an insurance policy to a better retirement. Without good health, retirement will not be nearly as enjoyable. Get into the habit of the following:

  • Take a daily walk or join a running club.
  • Take up a sport.
  • Quit buying food from the central aisles of the supermarket (the mixes and packets and foodstuffs with added calories and additives) and stick to the outside aisles where you’ll generally find all the fresh produce.

6. Turn a hobby into a part-time business.

There are two ways to work towards having a better retirement: save more or spend less!

If you can’t spend less, then why not think about ways you could potentially earn a little more and turn a hobby or skill into a part-time business? Consider the following:

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  • Are you crafty? Perhaps you could make arts and crafts, jams, or cakes to sell at weekend markets.
  •  If you’re a handyman perhaps you could help your neighbors and friends with their home maintenance jobs.
  • Do you have any useful freelance skills—such as graphic design talent, web design expertize, or copy writing flair that you could charge for at an hourly rate?
  • Perhaps find a fun part-time job—if you like gardening look for part-time work in a nursery or garden center.

7. Upgrade appliances

If you run heating or cooling units, washing machines, and dish washers and they are nearing the end of their life span, then consider upgrading them before you retire and while you still have finance options available and a salary coming in to pay them off. Take stock of all your appliances and decide which need replacing, then sell your old ones to create a little cash to put towards the new ones.

8. Sell the fancy toys

Own a boat that just sits in the garage these days? What about the canoe? Do you still need three bikes now that the children have left home? Sell your lifestyle toys that you don’t use anymore, bank the cash, and use it on funding a better retirement.

9. Redefine your car requirements

If you are married and your children have left home, perhaps you have two cars, but actually don’t need both anymore. Not only would you be cutting your carbon footprint by running just one vehicle, you’d also be making huge savings. Follow these steps:

  • Open the conversation about how and why you need two cars.
  • Find out how you could both compromise if you had only one car.
  • If it’s possible, then sell the second car and watch the savings accumulate in your bank account.

10. Take cheaper holidays

We’re bombarded by advertising about how we should be living the good life, and this may include travel, which as we get older becomes easier again once our family responsibilities become less. But do you really need to go on a fancy cruise if you are still fit and healthy? If you want to save money for a better retirement then consider the following options:

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  • How about hosteling in Europe, perhaps? It costs a fraction of the price of five-star hotels.
  • Take a biking holiday instead of lying by the pool of an expensive resort and drinking cocktails. Your mind and body will probably thank you for it as well.
  • Book holidays out of season, or at least outside of school holidays.
  • Self-cater instead of booking into expensive resorts.
  • Hiking is free. Think about a walking holiday rather than clocking up the miles in a hire car.

11. Reevaluate your insurance policies every few years

Don’t be complacent and accept rising insurance premiums merely because you’ve been with a company for X number of years. Check out other deals, phone around, and see what packages are available for bundling car, house, and contents policies, for instance. Get recommendations from friends and advisors. Doing some insurance housekeeping every few years may well save you hundreds of dollars in the long run.

12. Compare bank services, banking fees, and mortgage providers

Banks make money from us, make no mistake. Just how much of your hard-earned savings they extract is up to you because banking fees and services differ from bank to bank and are apt to change. Shop around until you find an exact match for your banking needs, then shop around some more until you find the bank offering the lowest fees. Rinse and repeat for your mortgage provider—sometimes it might save you money to switch a mortgage mid-term to a company offering a better deal, but speak to a financial advisor before you do unless you fully understand the cancellation and refinancing fees.

13. Understand your investments and asset allocation

Assets consist of equities, fixed income, and cash. An investment strategy will probably aim to balance risk and reward according to your short-, mid- and long-term goals, and your tolerance for risk.

If you have investments, get clear on what they are, and how much they yield each year. Make sure your assets are well allocated and consider age-old sound advice, which suggests not to put all your eggs in one basket. Decide, if possible, to cut down on assets that cost you money (such as cars and boats) and invest more in those that accumulate capital or cash. Ask yourself if your assets are still working hard for you and if they are still beneficial. And, if necessary, speak to an accountant or financial advisor to assist you make investment decisions for your future and for a better retirement.

When you have done this, then file any share certificates, bank statements, rental income records, and anything else from which you earn money in easily accessible files, either in a cabinet or on your computer for easy future reference (don’t forget to have a hard drive backup).

Keep fit and well, good luck with your saving, and here’s to a better retirement!

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Last Updated on August 10, 2020

8 Reasons Why Goal Setting Is Important to a Fulfilling Life

8 Reasons Why Goal Setting Is Important to a Fulfilling Life

The importance of effective goal setting cannot be overstated on our personal journeys towards success. This is why there are countless articles out there on how to set your own SMART goals and even why it’s a skill commonly taught to a small degree in classrooms.

Learning the importance of goal setting and the benefits of sticking to those goals can be the defining factor determining whether we truly embrace the importance of goal setting. The more willing we are to embrace this method, the more likely we become to reach our personal definitions of personal and professional success.

Thus, today’s article is going to walk you through some of the benefits you’ll see from learning to set goals for yourself and answer the question, “why is goal setting important?”

1. Goals Guide and Align Our Focus

It’s hard to get to where you want to be in life if you don’t know what you’re aiming for. Some people believe avoiding goals means living a more care-free life. How many times have you heard the phrase “If I have no expectations, then I can’t be disappointed”?

But is that really what our lives have come to? Living just to avoid disappointment? It doesn’t seem like an overly optimistic view in my opinion. And since you’re reading this article, I’m willing to bet that you agree with me.

Without goals, we lack a degree of direction and focus. Sure you may be able to avoid disappointment, but just avoiding disappointment doesn’t mean you are necessarily happy.

Without goals, we will pointlessly waste our time, energy, and efforts. Listen to anybody who is the top of their field and they’ll tell you something like this,

“Yes talent is important, but often your success depends much more on what you decide to do with that talent.”

And what you will do with your talent largely depends on your focus.

Your goals give you direction. Your goals give you something to shoot for. This direction and target you create in your mind will help you to progress towards your main life goals rather than simply wander around aimlessly. These goals will help you align your actions and behaviors as you continue moving forward.

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So, why is goal setting important? Because it gives you direction, alignment, and purpose!

2. Goals Help You Avoid ‘Shiny Object Syndrome’

Basically, shiny object syndrome is always being in pursuit of the next big thing, constantly switching your goals based on what you feel is most fun and interesting at the given moment, but never actually giving yourself time to accomplish any of those goals.

You don’t get anywhere because you continually change the direction you are heading in. This is one of the consequences that may result if you decide to live a life without goals.

Your goals can sometimes help you to create mental barriers, or blinders, that help you to remain focused on what you think is important and avoid the things that are second priority. When you outline goals for yourself, you are better able to avoid things that distract you from achieving and accomplishing those goals.

Setting goals helps you to step around the other shiny objects because you’ve taken the time to make some mental notes that remind you what it is that you want from your life. Your goals act as subconscious deterrents to anything less than your main priorities. This is what helps you to reach your personal definition of success.

So, why is goal setting important? Because not only do goals tell you what you want from life, but they also help you realize what you need to give up and avoid to achieve that.

3. Goals Turn Our Largest Goals into Manageable Steps

A lot of us have big hopes and dreams. It’s one of the things that make our lives exciting!

But a lot of us never take the time to figure out how we can effectively get from point A to point B. So, sadly, we never fully achieve those goals. We look at our dreams and convince ourselves that only a select few people ever achieve them, so we write ourselves off as people not meant to reach that level of success. Looking at the end product of a goal can be intimidating, daunting, and discourage us from even pursuing them.

Thankfully, goal setting helps us break large intimidating goals into smaller ones. These small steps and more achievable goals will help us to build momentum and will encourage us to keep working towards the next phase of our goal. The form the foundation from which we can begin building the life that we truly hope to have for ourselves, our families, and may even for our communities depending on how big your goals are!

Whenever I get talking about this aspect of goal setting, I can’t help but think about the mountain climbing analogy, and that the easiest way to climb a mountain is simply step by step.

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So, why is goal setting important? Goal setting gives you a list of manageable steps that you can take in order to take your life from where it is now to where you want it to go both effectively and efficiently.

4. Goals Encourage You to Take Action

This builds on the last benefit of goal setting. Not only does effective goal setting help you break down your larger goals into smaller, more manageable ones, but it also encourages you to actually begin taking action on those goals. After all, a plan is completely worthless if you aren’t willing to invest the effort required to execute it.

Setting your goals and putting your plan in place motivates you to begin taking action towards achieving them. These goals give you something to plan and work towards. Essentially, they help propel you forward.

What I like to do is write out and place my goals somewhere that I’ll regularly see them. This constantly serves as a reminder of my top priorities. It allows me to focus on taking small progressive actions towards achieving these goals daily.

This ensures that I don’t fall into the trap of setting a goal, beginning to work towards it for a while, but then having my motivation fade resulting in me falling off track. This is exactly what many people see happen when it comes to their “New Year’s Resolutions.”

If you want to learn about how to take action towards achieving your goal, here’s how: How To Take Action Towards Your Goals Right Now

So, why is goal setting important? Because goal setting actually motivates you to stop thinking about your goals and actually get out there and achieve them!

5. Goal Setting Helps You Continually Improve

This is something that a lot of personal development and self-improvement writers talk about, continual improvement. For those of you who are not aware of the term, continual improvement is exactly what it sounds like — taking small steps towards improvement as frequently as you can to develop into the person you want to become.

What’s the point in improving a little bit each day if you’re not improving in the areas that you want to improve in after all?

The goals that you define for yourself will inevitably shape you into the person who you want to become. They’ll shape your character. Your goals can help you measure your progress as you strive for this type of development.

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Essentially, having goals helps you determine where you started, where you are now, and how much further you need to go. In this manner, your goal setting can serve as milestones and benchmarks that help you determine how well you’re progressing towards your most important goals!

So, why is goal setting important? Goal setting helps you make improvements each day that will slowly transition you into the person you want to become.

6. Goal Setting Keeps You Accountable

Not only does setting goals help you measure your progress, but it also is a means through which you can keep yourself accountable. Too many goals fail because they lack this crucial aspect of outlining accountability.

For example, if I have the goal to do 50 push-ups, that’s great. Most people would support that goal. However, this goal lacks accountability. When do I want to accomplish this goal by and what steps do I take to get there? These are important questions that the original goal leaves unanswered.

A much more descriptive and specific goal could be to do 50 push-ups within the next 3 months by starting at 5 push-ups, and then adding 5 each week. This goal outlines the deadline as well as the steps I’m going to take to achieve it. This plan will keep me accountable because if I fail to retain my progression schedule, I will know that I’m not going to achieve the goal on time.

Additionally, it can serve as a marker helping to signify when something is impeding my progress that I may not have initially accounted for. This tells me that I need to re-evaluate what I’m doing and figure out what adjustments I can make to facilitate my success.

So, why is goal setting important? Setting goals is key to keeping ourselves accountable and on-track towards accomplishing our goals according to the schedules and deadlines we set for ourselves.

7. Goals Make You Feel Good

Trust me, the progress you feel as you set and achieve goals can become super motivating and super addicting (in a good way)! The dopamine release you get from achieving your goals is like a little reward for our brains that continually motivates us to try and hit that next goal!

Having some clearly defined goals will help you to feel better about yourself and your life in general, especially when you stick to those goals, actively work towards achieving them, and end up accomplishing and surpassing your initial expectations. I’m not the oldest book on the shelf myself, but I can attest that there are not many feelings quite like the one you experience when you truly get on a roll!

Additionally, our goals give us an endpoint to shoot for. Rather than progress for progress’s sake, you can actually see where you’re heading! That’s so much more rewarding. Think about a long car trip as a kid. You ask “if you’re there yet?” ever 20 minutes. It seems like the drive drags on forever.

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If you don’t know where you’re going, you risk the journey becoming tedious. It doesn’t tend to be much fun wandering around aimlessly. Goals make us feel good about where we’re directing ourselves.

So, why is goal setting important? Because setting goals and accomplishing them plain and simply make us feel better about ourselves and our lives!

8. Goals Help You Live Your Best Life

I’ve talked a lot in this article about how goal setting helps us progress towards our top priorities and live the way we truly want to live. So I think it’s fit to end the article with this goal because, in the end, I feel it’s the most important one.

Setting your goals and clearly defining what they mean to you will help you live a life that is tailored to your beliefs and values. Your life will become directed towards the things that you most want to achieve.

Life is a tricky game and only in very rare circumstances are things handed to us on a silver platter. Often it takes a great degree of work, planning, and effortful execution of both.

There is no point clinging on to things in your life if they don’t bring you happiness or help you accomplish something that, in some way, aligns with your goals.

Simply put, setting goals helps us live a life that allows us to pursue the challenges and rewards that we truly want to achieve.

So, why is goal setting important? Because our time is always limited, and setting clearly defined goals can help ensure that you make the most of your life and live to the fullest! Find out more here: How to Use SMART Goal to Become Highly Successful in Life

Final Thoughts

These are just a few of the benefits of goal setting that outline why it truly is so important. If you take a moment or two, I bet that you can even think of a few more benefits yourself that you could add to this list.

If I could leave you with something, it would be this:

Goal setting has the potential to take us to some amazing places in life because we all have talent and ambitions. To achieve your biggest dreams, you need to be willing to sit down and create a life design uniquely tailored to you that will help you achieve them!

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Featured photo credit: Unsplash via unsplash.com

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