1. Increase your personal wealth
Many people think if they’re saving 10 percent or 15 percent of their income, they’re doing pretty good. But consider the reality of how much money you’ll really need to enjoy a decent standard of living in retirement – one equal to or greater than your lifestyle while working. Saving 10 percent or 15 percent may not cut it. You should work toward saving 20 percent, 30 percent or even 40 percent of your pre-tax income. Increase your savings by 2 percent or 3 percent each year, you’ll be surprised by how fast your nest egg will grow.
2. Impose a 24/7 rule
Except for basic necessities, wait 24 hours before making small purchases. For larger purchases, such as a new appliance or television, wait seven days to consider whether you really need the item before you make the purchase. If you’re eyeing a major purchase – think new car or luxury vacation – wait 30 days. You may be amazed by how many things you think you “need.”
3. Use cash
Studies show that using cash for purchases could decrease your spending by 20 percent, and you won’t feel a bit deprived. Debit cards don’t have the same effect, even if the purchase is coming directly out of your checking account.
At Beacon Associates, we know retirement planning takes time and consideration. Through careful investigation, we will work with you to assess your current situation, recommend a plan of action, and implement this plan with you.
Retirement shouldn’t be SCARY! Call us today to start planning for your retirement years.
Information collected from: 3 Steps to Secure a Rich Retirement
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