1. Start from this very moment The earlier you start, the better, but even if you are over 40 and you haven’t done anything to this point, don’t worry, there is still time to turn things around. Forget about the past, there is no time like the present. Remember that every bit you contribute to your retirement helps by lowering the amount you pay in taxes for the year and, of course, increasing your retirement savings.
2. Dream as realistic as possibleYou might like to travel the world and have a big house on a beach. But you may have to decide to downsize your home and travel once a year. You might even need to work part-time. It may not be a Hollywood retirement, but try to keep exciting, easy and enjoyable. Take the time to think about what you really need and want versus what others say you do.
3. Live the presentYou still want to enjoy today, but you can do some tiny little changes. First determine what you can afford to save each month. If the answer is “nothing”, it may be time to think outside your bank account. Maybe you can avoid spending in certain things.
4. Reduce your current debt.
Focus on lowering your debt first, such as paying down your mortgage or other loans. Then, as those payments get smaller, you can use the ‘leftovers’ to increase your retirement contributions.
5. Automate regular contributionsThat way you won’t forget. It’s amazingly easy to learn to live on less and chances are you soon won’t miss what you don’t see.
6. Get help. An advisor can also help you adjust your plan as your needs change over the years to help ensure you stay on track.
Easy, right? start now!