It is not amusing when it comes to aging since it means that we are getting closer to our retirement, the stage of life where we put our full-time work behind. Thus, it is a must that we envision our retirement and think it through every time we are going to buy something.
The reason why we need a retirement plan even though we are only in our 30s or 40s is very simple. As we age, both our physical abilities and mental strength decline. They are no longer fit like they once were when we were young. Accordingly, this is when money savings play a role here in creating a happy retirement. Then, what does a happy retirement look like? Today let’s see the 5 tips to save your money and create your happy and rocking retirement.
1. Save up money for personal spending. First of all, calculate the amount of money you would like to spend each month on when you get retired including food, groceries, traveling, and most importantly, a healthcare expenses. Here is the example to calculate your retirement plan. For instance, Mr. A want to get retired when he is 55 years old and expects to live up to 20 years after his retirement and he plans to spend 20,000 THB a month or 240,000 a year. Therefore, he needs to have 240,000 THB x 20 which become 4,800,000 in total. However, in the future inflation will undermine its value, so it is a must that you prepare more.
2. Settle or reduce unnecessary debt to create such a peace of mind. You can start from spending less on a credit card or stop buying unnecessary things. Also, you should cut expenses from your trip abroad, maybe from traveling every year to every other year. Salt away your money little by little and it, finally, becomes a huge sum of money for you to enjoy after your retirement.
3. Start your money savings by consistently doing income and expenditure record. Save money every month and do so on a regular basis. If you don’t record your spending, you will never know how much more you will need or what expenses you need to cut. Thus, staying financially disciplined is a must.
4. Review your retirement plan regularly in order to remind yourself whether you are on the right track. You will know how much money you need to save to reach your goal or if you calculate and find that it falls behind your plan, you can make and adjustment in time. Having insufficient savings can be a huge obstacle in a journey to your happy retirement.
5. Manage an investment portfolio properly and reduce risks by investing in other assets. This will help increase the value of your money. If you don’t have the knowledge regarding the investment, you should learn and do some research. Another good solution is to consult a professional financial planner who can help you develop your financial plan and successfully manage your life after retirement.