Yesterday we discussed some of the financial problems that the baby boomer generation has encountered as they enter their retirement (You can view this post by clicking here). Some of the statistics that are coming out regarding the age of retirement for a lot of folks can be quite shocking, but there are certainly some things an individual can do to better prepare themselves for retirement. Read on to see some of our tips to better financially prepare yourself before you reach your golden years.
Start Saving Money Early
This one is a no-brainer. Any financial advising team will tell you the obvious – if you want to retire earlier, start saving money to do so earlier in life. Take advantage of a 401(k) plan at work and avoid touching your savings unless you absolutely have to. If you put aside money throughout your career over the course of your life, you’ll have no problem saving enough money to retire by 65, or even much earlier.
Don’t Worry About “Keeping Up With The Joneses”
Nice things in life might make you happy Think Before You Put Something On Your Credit Cardfor awhile, but luxury items are certainly a non-necessity. The majority of people that successfully save enough money for their retirement avoid expensive luxury cars, yearly trips abroad, or homes that are larger than they really need. You can certainly get a nice house that is comfortable, aesthetically pleasing, and suits your needs without splurging on a vast estate. Driving a relatively inexpensive, reliable car that gets great mileage can put a lot of extra money in your pocket over the years, too.
Think Before You Put Something On Your Credit Card
This is a big one. According to TD Ameritrade, a whopping 67% of happy retirees indicated that their key to having enough money to retire earlier in life was by limiting how much they used credit cards. Avoiding debt is always good, and it’s important to limit how many big purchases you make in your life that you need to use a credit card for.
Look For Jobs With A Higher Salary
This may seem easier said than done, but to be happier later in life, you might want to consider getting a job where you can get as much money as possible. That means maybe taking jobs that pay more but aren’t as exciting as lesser paying positions with other companies. Additionally, try to get raises and promotions and don’t become too complacent in a position. Lastly, you don’t have to spend every bonus you get on gifts or vacations – you’ll certainly appreciate them later in life if you put them towards your retirement.
Lastly, TD Ameritrade recommends a solid investment plan, and you should be more or less doing what needs to be done to ensure a retirement that’s both happy and not too late in your life. Regardless of how much money you make, there are certainly things anyone can do to both maximize their earnings and prevent their spending, which in turn can be put into a retirement fund for their later years.
Source: The Street