One of the greatest dilemma that faces a retiring worker is how to retire well and live a decent economic lifestyle after retiring from paid employment. The economic lifestyle of most workers in paid employment drops significantly immediately after retirement. Often time leading to health complication and sometime untimely demise. Here are 8 proven ways to ensure you maintain a leveled financial lifestyle even after retiring from paid employment.
1. Cultivate Savings Habit.
Not too much can be said about this simple and proven wealth accumulation strategy. Retirement savings account is one sure way to have enough cash kept aside for the rainy days. Financial experts are of the opinion that you should save not less than 20% of your monthly income for retirement.. People with very low income may however find 20% too much to put aside for retirement but a gradual increase from 5 to 10 and eventually 20% is recommended. People with very high income will surely need to do a lot more than 20% to maintain same economic lifestyle after retirement.
2. Spend On Needs And Not On Wants.
The elementary economics explanation of needs and wants has helped to distinguish between these two words. NEEDS are simply what is necessary for you wellbeing while WANTS are what is required to satisfy your desires. Most people however concentrate of their WANTS and are ready to expend as much money as possible to satisfy their desires while maintaining their NEEDS. To retire well is to be able to free your income from wants and concentrate on your needs so you can have enough money to save and invest for retirement.
3. Save Enough Money For Your Children Education
Funding of children education is one of the greatest challenges facing retired parents. So why not start now by putting enough money aside to take care of the education of your children. Start early from the day your children are born by opening a children accounts in their names and ensure funding of the account every monthly from your salary. Ensure cash gifts for your children goes into the accounts and you can be assured that by the time your children are of school age you would have saved enough to continue to fund their education without stress. Increase in funding of the children account is however recommended as the child grows older.
Remember that the greatest inheritance you can give your children is quality education and this will give you enough joy in retirement. So don’t joke with it in other to retire well
4. Invest Time And Resources In Your Passion
Funding your passion with time and resources is another sure way to ensure a stress free financial life after retirement. The first step however is to identify your passion early enough and attend trainings and seminar that will help polish this your identified abilities. Continue to nourish your passion and ensure you become the master in doing what your are good at.
This your skill will come handy as a source of earnings after retirement. What you must start doing however immediately now is to start searching and working towards using this skill to earn additional income for yourself.
5. Find a way to earn extra income.
“Work full time on your job and part time on your fortune” Jim Rohne
There lots of online businesses that you can do on part time basis that can fetch you extra income. What you must do however is to ensure you have a thorough understanding of the business you are going into before you venture into it. You can also take up part time coaching and trainings to earn yourself some income. The discipline will ensure you retire well.
6. Ensure You Retire Into Your Own Home
his is a very important aspect of you retirement life as you do not want to continue to pay rent in retirement. Ensure you put up/purchase a descent home that will provide minimum comfort at the least for you and your family before you retire from active employment. You may not need to have properties to let out for extra income during retirement if you cannot afford it.. But ensure you will not need to continue to pay rent while in retirement. This is important so you don’t stress your earnings in retirement paying rent.
7. Invest in stocks
The age long stock investment is another way to ensure you are not financially strapped during retirement. Expert advise that if your target for investment in stocks is for future growth of the stock price (just as needed for retirement purpose) then you should spend your money on cheap stocks that have great prospects. Income/dividend from such stock investment can then be put in your retirement savings account for future financial security. You may however want to consult your stock broker for guidance.
Insurance policies are another sure way to have some level of financial freedom during retirement. The little amount put aside in insurance policy will earn you some income during retirement. Your insurance broker will provide you with the necessary advise on the right policy for you.
Remember that you need to spend a greater part of your income now on things that will boost your happiness in retirement and true happiness in retirement will bring you good health. Start now!!!.
Read also: How to build your savings