Retirement is something that pretty much everyone wants, correct? I’m going to assume that answer is yes. Whether you are 25 or 55 (or whatever your age is!), I’m sure retirement has crossed your mind at least once. Hopefully more than once but that’s a post for another day.
Below are my 4 tips so that you can save for retirement. Of course, depending on how quickly you might want to reach retirement, that all depends on how hard to try for the five things below. For example, someone wanting to retire within 10 years will probably have to try much harder to reach retirement than someone who wants to retire in 40 years.
Gen Y Finances: 2017 could be most successful year in your life!
1. Lower your spending.
One of the very first things you may want to think about doing when wanting to save for retirement is to lower your spending. This does not mean that you need to start eating Ramen 24/7, instead I mean that you should take control of your spending and learn not to live paycheck to paycheck.
Create a budget, spend on what you want to, don’t try to keep up with the Joneses, and more. You don’t need to spend like a millionaire in order to enjoy life.
Related articles you should read include:
- Budget Mistakes You May Be Making
- 5 Ways To Lower Your Budget ASAP
- How To Create an Effective Budget That Will Work
2. Increase your income.
If you have found that you cannot really lower your spending any further, then you should look into different ways to increase your income. You might want to seek promotions at your work, seek our a part-time job, start a side hustle, create your own business, and more in order to increase your income.
Once you do start increasing your income, you should try not to fall into lifestyle inflation, and try to save at least some of the extra money you are making. Too many people go ahead and spend any increases in income, which then makes it hard to save any of the extra money you made in order to save more money.
3. Invest your money.
In order to retire, you will need to invest your money in some form. With inflation, $1,000 today is not worth $1,000 tomorrow, and $1,000 40 years from now will not be worth anywhere near the amount that it is today. This can mean a lot of wasted money if you do not carefully invest your money.
4. Try for some passive income.
If you are looking for a way to continue bringing in an income after you retire, then you may want to try for passive income. This can be a great idea if you still want to bring in some “stable” cash flow and not be entirely dependent on your investments. Some forms of passive income include renting out real estate, dividend paying stocks, and more.
When do you plan on retiring? What are you doing to save for retirement?