When are you planning on starting your retirement?
A few years ago, most people would have answered with numbers like 60, or even 50 if they were feeling lucky. However, as the workplace becomes more demanding, and it grows increasingly difficult for us to save money outside of our monthly expenses, it might feel as though you’ll be working forever.
Average retirement ages are increasing to 80 and beyond for some people. Although there’s nothing wrong with working when you’re older if you love your job and you’re looking for a good way to spend the day – you don’t want to be forced to work until a late age just because you didn’t plan properly.
The following tips could help you to retire a lot faster.
1. Know your Goals
There’s nothing quite like a clear set of goals when it comes to keeping yourself and your family motivated. Before you start working on your budget and adjusting your spending, ask yourself what you want to accomplish with your money. Do you want to retire at the age of 40, or would you prefer to go on vacation with your family every year?
Are you interested in living in a big home, or would you mind moving into something smaller if it meant that you and your partner could live without a job for a few years more? It’s all about getting your priorities in check from day one. Decide what matters most to you and build a plan that will help you to move towards your goals.
2. Compare Everything
When it comes to saving money, every little bit helps. That means that you can’t afford to take prices at face value. Rather than just agreeing to a cost because that’s what’s written on a website or price tag, ask yourself if you can get a better deal elsewhere. More often than not, you will be able to save some money just by switching to a different vendor or buying from a new store.
For instance, when you’re getting an online loan, you know that the best way to save money is compare the different banks and building societies that can give you your money. The less interest you need to pay each month, the more cash you’ll have left over for the rest of your life.
3. Always Put Savings First
One of the biggest mistakes that people make when it comes to managing their budget, is thinking that their savings are a “want” instead of a need. Although you might think that a house in the future and an early retirement are just something that you’d “like” to have, you need to treat them like a need if you’re going to keep pushing yourself as hard as you can towards your goal.
To improve your saving strategy straight away, pay yourself first before you do anything else. As soon as you money comes into your bank account each month, a portion of it should automatically go into your savings account, where you can’t touch it.
4. Stop Settling for your Job
Ultimately, while you can accomplish a lot by living a frugal lifestyle, it’s worth remembering that you can’t become a millionaire if you have a terrible job. Similarly, it’s much harder to retire early when you’re barely earning any cash that you can put towards your savings. Since your pay is the centre of your future investment plan, you’re going to need to make sure that you’re making as much cash as possible.
Consider looking into new jobs so you can make some extra cash. Think about learning new skills if you need to or open a side venture where you can begin to develop your entrepreneur lifestyle. There are plenty of ways to make some extra money these days.
5. Live in a Smaller House
Often, when people start their career and begin saving money towards long-term goals, the first thing they begin saving towards is a new home. However, the truth is that when your cost of living is low, it’s much easier to save some extra cash. Rather than saving up to buy the biggest and most luxurious house you can afford, consider moving to something smaller so you can keep things simple.
Your home doesn’t have to be huge for you and your family to be comfortable. You might find that living in a smaller home helps you to declutter, and ensures that you spend more of your money on things like vacations and experiences than unnecessary objects.