Do you see yourself as someone who won't ever retire? You probably know some people who have already retired, but you can't imagine that you'd ever stop working. If you think this way, you likely haven't saved much for retirement.
Such thoughts could become a self-fulfilling prophecy, and you might end up working until your health fails, or you might be forced into retirement. Nonetheless, it is easy to be prepared for retirement if you have the will and determination. Here are six things you should do before retirement.
1Prepare Yourself For Retirement
By now, maybe you're considering that you'll actually retire. What can you do immediately to begin establishing a bright financial future during retirement? Talk with your partner about the kind of life you'd want if you stopped working. Make some plans that make such a life possible for you.
2Accept The Reality
You'll likely retire at some point. Think about your current finances. Imagine how you'd live if, for some reason that's unknown to you today, you had to stop working tomorrow.
3Start Saving This Week
Aim for putting back 15% of your salary. Look at it this way - it can help you have some extra money in the bank. Start saving this week or as soon as you receive your next pay.
4Establish A Retirement Account
Talk with your tax accountant about the best type of retirement account for your situation. You have several options. You may apply for an individual retirement account (IRA), Roth IRA, or 401(k).
5Develop Passive Income Resources
How can you get started now to establish a new source of passive income? And how can you keep it going? Think of different ways to develop passive income resources.
There are many ways. One is investing in a small business. This will give you an extra source of income.
6Focus On Building Assets
Maintain your home at the highest level. This way, if you decide to sell, your house will be in tip-top shape. Begin some short-term investments (five years or less) and regularly place some dollars there.
7Reduce Outgoing Expenditures
Take a look at the amount of money you have going out in an average month. Look for ways to cut spending. Follow through with instituting those cuts.
Regardless of your reasons for thinking you won't ever retire, start planning for a time when you'll at least slow down working due to health, age, or level of physical energy. Put these strategies to work even if you don't plan to retire. You'll be glad you did.