Everyone hopes to retire one day and this takes planning. What does your future retired self look like? Are you struggling with money? Are you in your tropical beach house taking in the beauty of the ocean? Where are you? What activities are you doing? Where are you living?
There’s a lot of talk about the future and what we want for our lives. We’re all smart enough to recognize that just talking about things isn’t enough to get us to our desired destination. When you know what you want it’s time to make a plan. Write it down! Outline the possible steps you need to take to get there. Consider the possibilities and different scenarios.
It’s time to take care of your future self through the choices you make today. Financial advisors have warned for years that relying on social security can be risky and what you get monthly will not be enough to live on. Maybe it’s wiser to consider social security as an extra that will come in retirement and then if it’s not there, I’ll be ok?
Typically, 10% of income should go into savings for retirement. The age someone starts saving is crucial! Time is something we can never get back once it’s gone. Waiting to save means tons of compound interest is lost and you have a lot less later on. However, it is possible to make up some of what you’ve lost, so do not despair!
Ten percent might sound like a lot but in reality it’s 10% pre-taxed, so it doesn’t feel like a whole 10% when it comes out of your pay. If you’re starting in your 20s, 10% is the perfect way to ensure you’re loving your future self and you’ll have enough in retirement.
What if you’ve not understood your benefits well and you haven’t known what to do? You can set up a free consultation with our coach to help you understand this better. This will raise your financial intelligence and empower you! You’ll know exactly what choices you want to make with your benefits.
Most people aren’t very intentional with their finances and some even think in the back of their minds that everything will work out but the truth is that money will only do what you tell it to do. If you haven’t been intentional in saving like you should there’s no need to panic. Today can be the day you start taking care of yourself better. Good financial health brings peace of mind. Just like we work on our physical health we also need to pay attention to our financial health. Today can be the day you set things right for the future you want.
I hear so many people looking at their 401Ks and IRAs groaning right now because the market isn’t doing well. Truth is that retirement money isn’t for now, so you technically haven’t lost a thing unless you decided to withdraw it. When the market is down it’s the BEST time to contribute! WHY? The shares cost a lot less and when the market goes back up you’ll be amazed and very satisfied! I heard Rachel Cruz say to think about it like it’s “on sale.” When the market is down that’s the time to boost your contributions! You’re buying more shares at a lower cost and it will grow a lot when the market blossoms and goes up. You won’t be sorry!
Feel like you need a superpower when it comes to your retirement savings? Here it is: Contribute consistently! Choose the percentage you’ll need in retirement and be consistent and when retirement comes you’ll fully understand why this is a superpower. Slow and steady wins the race for sure. There’s no quick fixes but being consistent will pay off. It’s your money at work for you! Love your retired self today and make the necessary changes to win later on.
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