”You can be young without money but you can’t be old without it.” – Tennessee Williams
(So work. Save. While you still can. You don’t need much. Just Enough. And KNOW WHEN TO STOP TO ENJOY WHAT YOU’VE SAVED) — That one’s from moí.
There are many things to consider before retirement. What to do? Where to go? How to spend time off work? All these present options for retirees to decide on. They are choices. But the choices are made available ONLY when you can afford to retire. So how do you prepare for it?
You may work a good 2 decades or more yet not be ready — financially — to retire. Thing is many simply depend on the retirement fund to live on after a career ends. DON’T! Set aside your own kitty for those “golden years” rather than depend entirely on what your company doles out for your loyal service. The earlier you do this, the better.
When you decide to set aside an amount early on, the habit picks up through the years and the fund is given a long time to rollover, to double, triple, quadruple or more before retirement sets in. Remember, there is a good chance a P100,000 saved 20 years ago would be worth at least P1Million today.
If you have trouble saving, then take a loan payable through salary deductions. These “forced savings” are fine so long as you INVEST the loan proceeds. Make those fringe benefits work. Many companies offer salary loans to its employees at concessionary rates. Take them. Invest them. Treat them as your “retirement kitty”. Temporarily forget that the fund exists.
A good ballpark figure is to save enough that will yield at least 75% of your take home pay. If you were able to live within your means before you retired, the income stream from your kitty fund should be enough to see you through. Unless you feel secure about this, it would be a chore to enjoy life AFTER retirement.
Now, if your loyalty is even rewarded with a hefty separation pay, pat yourself on the back and let’s now start planning how to spend that money! Remember…. Your money is only as good as when you enjoy them or share them. Have enough to take care of your daily needs, set aside something for unanticipated and emergency needs, then count the rest and thank the good Lord for the “extras” to enjoy and share with others.
Retirement is wonderful if you have two essentials — much to live on and much to live for.
— Author Unknown
As in all successful ventures, the foundation of a good retirement is planning.
— Earl Nightingale