If your life has seen its share of miscalculations, perhaps your planned retirement needs to be recalculated. Retirement is the one time that you can't afford to be wrong, otherwise it will cost you in the long run. Retirement is about enjoying your life without having to punch a clock. Unfortunately, many retirees look for work because they can't make ends meet with their retirement funds.
Many people buy into the myths of retirement that may see them working until the grave. If it helps, take a retirement road trip. When it comes to retirement, I suggest making better decisions.
Since our lifespan is increasing we need to adjust our retirement timetables. Another bit of wisdom lies in avoiding money disasters that can wreck your retirement.
Putting something aside for retirement is an essential part of life that many don't consider until they are on its back door. If only we put something aside at a young age to go toward our retirement, we may retire at a young age. Keep in mind that your retirement more than likely must fit your lifestyle. Saving something should be automatic when it comes to retirement, and the key is to NOT touch the savings until retirement or beyond!
Small steps for saving toward retirement:
1) Put all windfalls into a savings. Raises and any extra money you come across.
2) Cut money consuming habits and pocket the savings. Smoking, addictions, etc., stop throwing money away and pocket the savings.
3) Don't live beyond your means by living on credit. If you saved the money on interest, retirement would move smoothly.
4) If you live in a bottle deposit state, put your refunds in a savings.
5) Put your government refunds in a savings. Your yearly federal and state refunds can be put to good use.
6) Stop trying to keep up with the Joneses. This will save you a lot of money.
7) Quit trying to get rich quick through scratch-offs and lottery numbers. Winnings are temporary and losses put you deeper in debt.
To play it safe, I have a formula for saving for retirement depending on when you start. If you start in your teens, you should save at least 5% of your paycheck a week for your work-life toward retirement. If you start in your 20s you should save at least 10% a week toward your retirement. In your 30s 25% a week, in your 40s 30%, in your 50s 45%, and in your 60s 75%. If you start in your 70s you might as well work until your grave!
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