The Best Handful of Tips 46 – Saving for Your Retirement
It is never too early to start saving for the day you stop earning. The sooner you start, the greater your chance to succeed. Retirement comes quicker than you think.
Compounding interest on your savings is a good way to build a nest egg. Try to save a little each pay day.
The five best tips to help you set your long-term financial goals.
Set long-term goals
Review your plans regularly.
Calculate your net worth every year and make any necessary changes.
Pay off debts as soon as possible
It’s easy to get into debt but hard to get out of it. Pay off your credit cards as soon as possible.
Manage your mortgage repayments carefully.
Take care what you spend your money on. Ask yourself, “Do I really need it?”
Get yourself a mentor or a good financial adviser
Make the most of other people’s experiences especially those who have had sound training in investing and accounting.
Develop a risk protection strategy
Unpredictable events are common, such as a medical emergency, or the loss of employment due to a work takeovers. More people are being made redundant because of new technology and robots.
Cover your risks with insurances, income protection, trauma cover and health insurance.
Build your investment assets
Aim for a nest-egg for the times when you are not earning.
Spread your risks. “Don’t put all your eggs into one basket.”
Review your investments regularly to ensure you are getting maximum returns for your investments.
Diversify into property and into shares. Your own home can be a great asset when you stop working. One of life’s great thrills is paying off that last instalment. Once payed off continue saving at the same rate but put the money into a compounding interest account.
If you don’t start making long term plans now you may live to regret it.
– Geoffrey Moss, mossassociates.co.nz
“Doing your homework now beats moaning in your old age.”
SOURCE: “Secrets for Success. This book could change your life.” Moss Associates Ltd, New Zealand and Cengage Learning Asia. Also published as an e-book available from Amazon.com.