Every individual, be it a business owner or a self-employed professional has to take his retirement into solicitude while planning his finance. They need to charge themselves for their retirement plans. Most of the time, people tend to sell their business which counts as their retirement plan. But that’s never a worth it idea for anyone to go so easy. Moreover, government pension plans are more of hidden revenue traps rather than a big help to the aged people. Thus, every wealthy entrepreneur or a professional requires taking stern measures for their future themselves. Let us find simple ways that will help you retire rich, especially in country like Singapore.
1) Pump up your Personal Wealth
Do you know about direct response marketing? If no, then go about learning it. It is a technique that will let you track every single dollar you spend and the investment returns you earn from it. Consequently, do not get into marketing methods others tell you for these plans are designed for them to get wealthier at your expenses. They trick you out in a way making you believe you would earn huge but later you end up suffering.
Moreover, keep increasing the savings you take out from your business. A comfortable retirement is the one where you aren’t short of funds or do not have to regret for the ways you opted in the past to make savings. On an average, one should at least keep $1 million as savings every year.
2) Keep a check on your lifestyle
It is a fact that a luxury once experienced and savoured turns out to be a necessity. There did exist a time when people lived without smartphones, and they still lived happily on the earth. But today, with smartphones being available to us, it ‘s hard to think of a life without one. While you start earning more, you tend to increase your expenses automatically. Thus, do not make your increased income a necessity. Think of a lifestyle you have always wanted and look forward to while you retire. It will help you largely on realising what expenses you actually got to make today. It is equivalent to realising the value of money today considering the future.
Make more use of cash: The researchers show that paying in cash makes us spend 20% less compared to spending through cards. Though we are aware that the money is being debited from our bank accounts, it will have no effect on your increasing purchases. On the other hand, having cash will keep you feel realised about the expenses you make. One tends to cut the unnecessary costs then. Further, even if you use cards, prefer a debit card over a credit card. Our spending habits get wider with the greater powers to spend. We do not realise till the end how we end up being on loan rather than making savings for future.
Apply the 24/7 rule on yourself: what does the 24/7 rule say? It says that for small purchases, one should wait for at least 24 hours. However, take some days to consider buying large appliances. The time you take lets allows cooling up your mind and make you realise if you really want to purchase the piece. It not just enables you to know if it’s worth buying or not, but it allows you to look up for different alternatives. While decisions relating to colossal and luxury stuff like a new house or a vehicle is considered, then take a break up to 30 days. Bigger the investment better should be your decisions.
Spend time with happiness: Find out if purchasing things really gets you happiness. Is it more than spending time with friends and family? Look for what is imperative and buy. Rest, do not change the mediums of joy with high incomes.
Make a good money plan to do good savings
The theory to retire rich does not say spoil your present for the future. It is equally important to enjoy the present as it is to consider our future. Accumulate a specified percentage of your income for later times. Be it 20% or 25 that wouldn’t cut your contemporary lifestyle nor will lead you to suffer the future. Moreover, try to increase this percentage by 1 or 2% each year. You won’t even feel a pinch for sure.
3) Invest your savings
There is a huge difference between the terms savings and investment. Savings involve an amount of money that you keep aside for using it when the appropriate time comes. A real time is when you are short of money, and you require it. We save for the uncertainties. It is an investment of money that we cannot afford losing. On the other hand, investment is a method to keep the money worth value it poses at present. Today the value of money is not the same tomorrow. It diminishes. One makes an investment to ensure you do not lose the original investment of the money. Hence time value of money is a consideration. Thus, if you think spending all the 30 years of income will leave you to a generous requirement, you are wrong. You might end up saving nothing in the end without making investments. Look for the right opportunities where you ensure safety added with an appropriate valuation of money. That gets you saving good and retiring rich.
People usually fear while they think of their retirement. Some plan to work even then but fail to do so. Life has different stages. Every step is meant to enjoy in a different way. So is your retirement. It is not just pension people who enjoy their retirement. An intelligent planning can lead you to live a better one. It is a concern of how you undertake your present. Enjoying present along with making better plans for future is the best way to live life to the fullest. Follow the above tips, and you are ready to go in your old age.