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This Is How Anyone Can Supercharge Their Retirement

This Is How Anyone Can Supercharge Their Retirement

Whether you’re so far from retirement that it seems like barely a blip on your radar, or you can see the big day circled in bright red ink on your calendar, planning for retirement at any and every stage of your life is essential. From small, incremental changes to big, monumental ones, there’s a lot of value in being an active planner when it comes to your “second act.” Here are 10 ideas for anyone to supercharge their retirement.

1. Start living simply.

This is a life-long lesson for anyone who wants to retire comfortably. No matter how close or far you are from retirement, start living a more simple life now. Scale back on all of your expenses. Each time you’re going to make a purchase, ask yourself if this is a need or a want, and if you’ll be just fine without it. Opt for less living space when possible, and aim to acquire fewer things.

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2. Ask for a raise now.

Earning a higher salary now means that your earning potential for the rest of your life has grown. Don’t put it off another day–if you think you deserve more, then ask for it. If you’re take-home pay is $50,000 right now, and your raise gets you $5,000 more each year, you’ll make $75,000 more over the course of 15 years. You might not notice a big difference paycheck to paycheck, but the amount you can put into savings is significant.

3. Cut back on your expenses.

This is part of living a simpler life. Make it a habit to reduce your energy consumption, buy fewer clothes and take better care of the ones you have, and avoid purchasing anything new. Sources like Craigslist, consignment shops, and reuse stores offer a wealth of new or slightly used merchandise at far lower prices, or even for free. Resolve to not buy anything new for one month and see how far you are able to get. You’ll be surprised at how many things you don’t really need, or how much you can get for free or very inexpensively because it’s used.

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4. Max out your employer matches.

In addition to asking for a raise, make sure you are taking the maximum allowable level for your 401(k) and other employer sponsored investment and savings programs. Whatever your employer’s match is, be sure to meet its maximum. Otherwise, you are basically foregoing free money.

5. Take advantage of AARP and AAA discounts.

Even if you’re not yet retired, people aged 50 and older can become members of AARP and take advantage of the discount programs they offer. At any age, you can join AAA, and find discounts on everything from groceries to travel to entertainment.

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6. Work part-time during retirement.

When the Social Security Act was signed in 1935, the average life expectancy in the United States was only 60 for men and 64 for women, yet the retirement age was set at 65. Now people live 15, 20, or 30 years past their retirement age. Keeping a part-time job during retirement helps you stay fresh, offers you regular income, and keeps you connected to your professional self. There are so many options for professional part-time jobs for people who have a wealth of experience now. You can even find at-home jobs that allow you to work from the comfort of your home, helping you to avoid the costs associated with commuting and professional wardrobes.

7. Downsize your home.

One of the biggest expenses people have is the upkeep of their homes. Not only is a large home expensive, but as you age it will be more difficult for you to maneuver through your house. A smaller house provides you with reduced expenses and responsibilities, and the ability to stay in your home for as long as possible throughout your retirement.

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8. Learn how to cook.

This is a great idea for people at any age. Not only does learning how to cook give you something new to enjoy during retirement, but cooking your own meals is far cheaper than dining out. The added bonus is that home-cooked meals are generally healthier for you, setting you up for a healthier retirement. Cooking at home will help you save an estimated 75 percent on food-related expenses each year.

9. Put off retirement for just two years.

If the idea of working until you are 65 is not appealing, consider what you’ll be missing out on monetarily by retiring early. At 65, you are able to claim full Social Security benefits, whereas retiring earlier means that your overall payments will be lower throughout the course of your retirement. In addition, that’s two more years of bringing in a full salary and two more years to save for your impending retirement.

Lifestyle changes take a while to become habits, so be sure to make these tips part of your daily routine right now. Whether you’ve got a year or 20 years before retirement, it’s never too late to make meaningful changes that will positively benefit the later years of your life.

Featured photo credit: TaxCredits.net via flickr.com

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Brie Weiler Reynolds

Senior Career Specialist at FlexJobs

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Last Updated on April 28, 2020

9 Millionaire Success Habits That Will Inspire Your Life

9 Millionaire Success Habits That Will Inspire Your Life

As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.

You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.

But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 9 millionaire success habits?

1. Read for Personal Development

A daily habit I have discovered millionaires share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.

A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. [1] Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.

While millionaires sometimes read for pleasure, they also learn to improve themselves. They read topics on leadership, how-tos, self-help, biographies, lifehacks and also follow current events.

Here’re some recommendations for you: 25 Best Self Improvement Books to Read No Matter How Old You Are

2. Establish Multiple Sources of Income

Another success habit I noticed about successful people is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.

They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.

How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.

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3. Live on a Stipulated Monthly Budget

An average millionaire does not believe in luck and jackpot. They take the time to understand cash flow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.

The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals. Here’re some tips to help you stuck to your budget: 32 Hacks for Sticking to Your Budget

4. Manage and Maximize Money

The most significant education for a millionaire is financial intelligence. Nobody attains financial freedom without gaining financial intelligence. This is the more reason millionaire, regardless of their income, keep their knowledge about tax strategies updated.

They always seek to reduce their tax bills. One approach they employ is by living or incorporating their business in states with no income tax.

Do you know that about 60 companies paid $0 legally in the 2018 tax year? Some of these companies that ‘avoided'(note: not evaded) federal income tax include Chevron, Amazon, Halliburton, General Motors, Delta. Their US income was totaled at $79 billion with an effective tax rate of -5%.

What’s the deal? They got a tax refund.

How do they accomplish these?

An ITEP report indicated that they have the culture of throwing huge sums at tax experts who assist them in discovering creative, as well as convoluted means of paying little tax as much as possible.[2]

5. Avoid Debt

Another habit that separates the millionaires from the rest of the world is how they manage debt.

They don’t live an extravagant lifestyle; instead, they only buy what they need and can pay for. They do not book hotels and flights by using their credit cards to pay for them.

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They are conscious of the interest rates even when they use credits cards or take loans. If possible, they try to pay with cash because of its zero percent interest rate.

6. Set Daily Goals

It does not matter if they are setting up a business, a career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly goals to generate momentum in achieving their long-term goals.

Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.

Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars rather than hundreds of dollars.

7. Don’t Act Rich

The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed in his book that for the most prestige brands of cars, about 86% percent are toys of the non-millionaires. While most believe that people with huge fortunes tend to drive exotic cars, in reality the largest consumers of pricey cars are aspiring millionaires.[3]

According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate.[4]

8. Own or Buy Businesses

In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.[5]

  • E stands for employee – they work for others
  • S stands for self-employed – they work for themselves
  • B stands for a Business owner- employees work for them (500 or more employees)
  • I stand for Investors – Money work for them like Warren Buffet.

Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.

It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.

Check out How to Start a Small Business with Little to No Money for tips.

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9. Avoid Get-Rich-Quick Scheme

A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.

Bonus: How to Develop the Millionaire Success Habits?

Having learned these habits, the next question is,

How can I develop the Millionaire Success habits?

Here are six values you will need to develop:

Establish Your Life Vision

You need to be clear about what you want in life to set yourself for a life of success. Your vision has to go beyond becoming a millionaire to understanding why you want to become one. Any great entrepreneur you will ever find has a clear vision and an established mission.

Understanding why you are doing what you do will drive you to become the kind of successful person you want to be.

Make Your Passion a Profession

When your passion becomes your profession, work becomes pleasurable. Loving what you do enables money to flow to you and through you.

So what’s going to be? Wake up every morning by speaking positive words into your work, love what you do, and focus on the work that brings you joy.

Take a look at this article and learn how to make it happen: 5 Steps To Turn Your Passion Into A Career

Focus on Solution

Focusing on the solution means establishing the problem that you or your business address. This will help you focus on the solutions when others are faced with challenges.

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A millionaire has a mindset that is fixed on the solution. He or she knows there’s a way out, and that every problem is an opportunity in disguise.

Improve your problem solving skills with these tips: 6 Effective Ways to Enhance Your Problem Solving Skills

Develop Your Leadership Skills

Leadership skills are an asset that is indispensable if you want to develop a millionaire success habit. The more you hone your leadership skills, the more you will attract leaders who share your values.

Be Growth-Focused

Millionaire entrepreneurs prioritize self-improvement. Here’s how to achieve it:

  • Get a coach. Coaching will impact your life, and you will achieve peak performance in life and business when you have a life coach.
  • Be coachable. It is not enough to have a coach; you must be coachable. Sometimes, you need feedback and counsel to reposition your life and business. A coach has the wisdom and experience to counsel you from a higher perspective. The more you receive feedback and work on yourself, the more you become better at what you do and who you are.

Flip Your Thought Pattern From Acting To Being

It is not enough to have a millionaire success habit, you must also become a person of positive influence. This is how you can become significant. Bill Gates is not only rich; he is changing lives in Africa and different parts of the world.

If you want to become successful, you must first be and think like a successful person. This is how resources you need can flow into your life.

Here’s a final thought from me:

It is not enough to do something to have something; success is about being someone who possesses what is needed to take positive and inspired actions.

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Featured photo credit: Austin Distel via unsplash.com

Reference

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