What will you be doing at age 68? Will you still be working, or snorkeling in Cancun, Mexico? Will you have a part-time job at WalMart greeting people, or go golfing two times a week? Will you be out of debt, or have a stack of bills that take all your Social Security benefit check?
You are the one who has to decide whether you will save money today, or toss it aside. You are in control of how you will live in retirement and no one else is to blame if things don’t go like you wanted them to. Control is the operative word here. You are in control, but most likely you feel out of control.
Here are the main culprits that tend to drain away your ability to save:
- No budget or spending plan at all.
- No get-out-of-debt plan at all.
- No retirement plan at all.
- No tax planning at all.
If this is you in any form, then take me up on my suggestions that follow and make changes so you can live how you wish during retirement.
These first steps are basic — nothing fancy and this is not about a rate of return:
First, decide where you want to put your retirement funds, then load these accounts and ventures to the max. To be able to contribute the maximum amount each month, you will need to create a livable spending plan. To sign up for a low-cost easy program that will help you create one, go here. Plan your income and out-go so that you will have at least 10% of gross income going into these long-term savings plans.
Second, after you create your spending plan, then prepare a debt plan with specific dates as to when you will have paid off all debts except a mortgage. Again, you can create this debt plan by signing up for Money Mastery’s simple online program, here. At least know when you will only have your home debt left. When you have a date when you will be completely debt-free, which if you use the Power Down techniques of the Money Mastery program will make it possible in 10 years or less, then you will really start to become motivated.
Third, calculate how much money you will want to have at retirement. Be specific. “Inspect what you expect” and really take a look at things. Establish a target retirement date-certain and an amount of desired income-certain. Then take what you might have accumulated by then and compare to your goal. This result is a motivator, just like knowing when all your debts will be paid off is a motivator.
Fourth, keep a journal each month of how you are doing. Compare where you are with what you established as your objective. This comparison is a motivator as well. We all need motivators and the more you have the more they will help you reach your retirement goals. Even just doing any one part of these four steps will benefit you immensely.
I hope you will take my advise before it is too late. As Zig Ziglar says, “I will see you at the top!” For more help, contact me: firstname.lastname@example.org or go to www.moneymastery.com.