“Retired in peace” is often a word that is heard several times, but it has rarely come true. Inflation is an unavoidable factor that slaps your financial difficulties in the face in case you ignore the changing trend of the economy.
To make the first three words of this article come true, we ask you, our loyal reader, to take some of your precious time to go over the points below:
a) Early start
The best way to start is to save from the first day you start earning. It is vital to save at least 10 to 20 percent of your salary aside from provident funds to facilitate smooth retirement options.
b) Stock and Stock Funds
The above two are the best inflation-beating tools for retirement planning according to experts, if bought long-term. Please note that the type of investment should vary according to your age and it is mandatory to review the portfolio at regular intervals to judge whether it is on the right track.
c) Cancellation of debt
Sometimes it may be necessary to buy with credit cards, but make sure you don’t pay more than 30 percent of what you owe. Also, in recent times, home rentals reduce almost 40 percent of your monthly income. So if you’ve taken out a home loan and built a house, be sure to finish the terms within half a decade. You can start saving both in the rental of the house and in the amount of the loan to be paid.
d) Emergency Fund
The fund can help you in times of distress such as illness, job loss, accidents and many more. An amount of six months of your monthly salary can be counted as an emergency fund.
e) Health Insurance
As a human being, you always envision the best of the future, but a single hospitalization incident can take a toll on your savings. Having insurance policies not only helps you get tax benefits, but also reduces your level of dependency on treatment costs and inflation. The best way is to buy a long-term insurance plan after researching the right options.
f) Maintain discipline
Indulging in luxury are necessary aspects of social character, however, don’t let unnecessary spending creep in. Make sure you and your better half stick to a strict regimen and set aside a portion of your monthly income for retirement. A cost-benefit analysis will determine whether taking an unnecessary trip or going to the movies is worth the cost and the value of the expenses incurred.
g) Financial Plan
A financial plan should be reviewed at least twice a year, since the trend of your investments, salary changes every year. Maintaining a realistic view of life, family, and changing priorities will allow you to easily modify your retirement goals to stay on track.
h) New source of income stream
Creating income other than your regular salary has become almost a necessity. You can work part-time on your passion or continue to focus on other streams, such as inheritance.
conclusion
Keep in mind that goals for a fulfilling life after retirement are a long-term plan. You are destined to change course, modify, suffer setbacks and face all kinds of challenges. Be a warrior and stay on track to achieve the dream life you want at least after retirement.