Money 103
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Money 103
The best way to make a comfortable retirement is to start as soon as possible, the younger the better. By starting it with our first job we can make the contributions to an investment or retirement fund smaller as they will add up for a longer time frame.
Always ask your company if they have retirement options and pick one that works for you and your goals.
But it is not always possible to start straight away as life can be tricky for young adults with lots to pay for. So, if you only start planning for retirement at a later age in life, then we can still focus on the right actions to make it work.
No matter what age you are, have a look at how many years you have left for working and then work out how much you want to save up for retirement – Then you can figure out how much you need to contribute each year to reach those goals.
If you need help, there are so many financial experts that are available to discuss options with you and how to make the most for your retirement.
If you have added up the numbers and it is not looking good, that is not the end of the world. It just means we need to make adjustments on our budget to add more into these funds. First step is always to increase your income where possible. At an older age you can charge for freelance consultation work due to your years of experience and knowledge.
Find a start up to join as an investor if you have the money available or start your own business to get some extra money through the door – Entreprenuership has no age limits!
The next option is to reduce your lifestyle now so that you are not always playing catch up and after retirement trying to keep the big-time lifestyle and expenses.
Cut back your budget to what you need as a sacrifice for the future you are trying to build.
Unexpected costs always show up when we really don’t need them, but that is not our choice! So, to help deal with those hard times, it is best to always have a running emergency fund. This is a basic savings pocket that you keep separate from your main account and is available for only emergencies when they happen.
Plan with your budget and pick a rand value you want to always keep your emergency fund at (R5k-R10k for example) and get that saved up as soon as possible.
This is a practical step that helps you at any stage in life but would be extremely helpful in your retirement as you would then be on a really tight budget.
As with all things in life, these important steps only happen when you take the first steps and put in the hard work! So, start right now, where you are, and commit to making your future one to be excited about!!!
Let’s recap all of the amazing lessons we learnt about money management …
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