Do you feel calm and safe with your retirement plan? Probably not, according to the latest studies.
About half of the people who are about to retire feel ‘moderately’ prepared to do so. Why does this happen? To put it simply: for money. But retiring is much more than that.
The key to changing this feeling is to understand your finances. This includes facing the good and the bad and at the precise moment. We tend to see only the short term, but if we talk about investment, we will see drastic improvements if we focus on the long term.
These are the 5 details that a good investor should take care of:
- Create a budget, at last
Many people live with the philosophy of “let the month end before we run out of money”. While this may be true, we must take into account unplanned expenses, such as doctors, mobilization, etc.
It is important to materialize this budget and follow it. We estimate that an emergency fund equivalent to 3 to 6 months of the proposed budget would be needed. In this way, we will have a clearer idea of what we will need for retirement.
- Decipher what your true income is
Sit with your partner or family and analyze all possible sources of income. Whether Insurance, work, the sale of some property, investments, etc.
- Pay your debts on time
Don’t accumulate excessive debt on credit cards. It is important to have positive numbers in order to have extra savings for days to come. We must avoid reaching the point of liquidating investments only just to pay utility services.
- Save more now
It’s impossible to reach a peaceful retirement without saving. Set an amount and try to get to the same amount month by month. Yes, saving is difficult. No, there is no other way.
- Invest appropriately
It is crucially important to be well advised to invest. It is not a simple path but it is a path that will pay dividends in the future. Do not be afraid of risk.