If you have been working from 9:00 AM to 6:00 PM daily, I bet you want to retire as early as you can. That’s one thing everyone wishes. Even I want to retire as early as I can so I can enjoy more what life has to offer.
For those who want to retire early, I know the question you have right now is how you can save for your retirement. What should you do to retire early? What are the effective ways to save more? How can you save consistently? Let me share with you the things that I’ve been doing so I can retire soon.
Set your retirement goals
The first step to effectively save up for your retirement is to set your retirement goals. What do you want to accomplish when you retire? Do you want to build a house? Do you want to establish a business? What about getting your dream car? Or your kids’ tuition fees? Everything will be clearer if you set your goals. As early as now, sort the things you want to achieve when you retire. Focus on what would give you value when you reach the age of retirement. A house and lot are great. Though getting a car is not that essential, if you think it’s a necessity for your retirement, then go get it.
Set aside a portion of your income
Once you’ve created a list of your retirement goals, the next step is to set aside a portion of your income that you can use to pay for your contributions. If you have the amount to open a retirement account right now, don’t hesitate to do it. You can then get your monthly premium from your salary. If you think this is a challenge to your financial health right now, don’t worry. Everyone went through the same challenge. As you pay your premiums, you will slowly adjust to it. Although you might find this strategy difficult to do, bear with it until your retirement date and you will see the fruits of your sacrifices.
Choose the right plan for you
There are actually a lot of ways to choose the right retirement plan for you. Of course, there are pension plans that are initiated by the government such as SSS. Another plan is PERA or the Personal Equity Retirement Account. This is also from the government but it’s not considered as mandatory.
You can also choose a private retirement accountant provider. The closest you can get is from an insurance company. Whether you want your retirement plan to have insurance, investment, or plainly retirement funds, you can talk to your financial advisor about it. Make sure to opt for a plan that suits your retirement goals. If you want to grow your money while storing it in a retirement account, choose a plan that invests your money for a period of time.
You see, you have a lot of options here. You just have to start to be able to save up for your retirement.