“Hindsight is always 20/20.” The truth is we usually hear it when we look back with regret at certain actions in our past. Perhaps the one most notable regret many individuals have is not having done enough retirement planning when they were younger.
When you are young, you aren’t aware of life beyond the next few days. It is this mindset that leads to poor planning for retirement which, in turn, leads to a tumultuous time late in life when most people tend to seek relaxation as they step away from the working world.
As you’re headlong into your 30s, you may be raising a family, moving up the corporate ladder, and have begun to establish yourself as a solid citizen with good credit that pays taxes. Do more for you & your loved ones by keeping in mind these seven things as you begin to plan for your future:
- Define retirement – You need to establish specific objectives and goals for your retirement. Focus on specific ideas that make what you’re planning for clear and concise. Be sure, though, to be practical, and remember that even outlining your retirement plan is a step in the right direction.
- Take Care of Yourself Now – Preventative medicine is counterintuitive to the way we view healthcare. We go to the doctor because we are already sick. The best advice is don’t wait until something is wrong. Get in & get checked out from head to toe and establish a plan for how your lifestyle needs to change so that you can get to retirement.
- Assess Your Employment – We leave college with the goal of getting a job that seems to pay well, but we don’t dig deep enough to know that this job may not have all of the financial benefits you need for the future.
- Understand the Importance of Your Salary Now – Starting off with a solid compensation package is always helpful. The benefits of a higher starting salary really come into focus when you consider that your ability to increase your savings and having a bit more money to invest allows you to have a greater chance to earn more than a counterpart with a slightly lower yearly income.
- Know Where You Spend Your Money – You may have a solid yearly salary and be in great mental & physical health, but you still haven’t learned the value of a rupee. Think of it this way: if you spend a few rupees on coffee five days a week, you’re spending about Rs.400-500. In a month, that turns into Rs.1600-2000, and over a year (less two weeks for vacation) that turns into Rs.20000-25000. Was it worth it?
- Marrying Well – This is a little misleading, but the idea of marrying well pertains to marrying someone you love & who you feel you’ll be with for the rest of your life. All too often, ending a marriage can be a financially devastating blow.
- Starting a Family – Having children is a major decision, but it is one that you might want to consider even more based on your age. In essence, the longer you wait, the more expensive it becomes. For example, paying for college when you’re in your 40s as opposed to your 50s raises the stakes when it comes to what is left for retirement.
Retirement planning is a necessary part of life, unless, of course, if you plan on working until the day you die. With the right mindset and proper planning, however, you can put yourself on a path of financial responsibility for you and your entire family.