In this column, I spend a lot of time talking about mistakes and regrets when it comes to retirement. I’m not doing so to be gloomy. I’m trying to make sure you can avoid those same issues.
I genuinely want you to have the retirement you want, and that’s why I’m not willing to sugarcoat everything I say.
And with that in mind, here’s the flaw in your retirement plan and how you can easily fix it…
The vast majority of people all make the same mistake as they prepare for retirement. And for many, they never even recognize it until retirement is upon them and they have to scramble to keep the proverbial ship afloat.
That’s not going to happen to you.
With the advice I’m about to impart on you, you’ll be able to revise your retirement plan and properly prepare yourself to have the retirement you’ve always wanted.
So what’s the big mistake most people make?
Being too vague.
When it comes to planning for retirement, you have to be specific. Having vague goals and benchmarks will cause you to be vague in your pursuit of them. And not having defined plans will almost surely keep you from ever executing them.
Think about it – how precise are your retirement plans?
Have you worked out exactly how much money you’ll need for the retirement you’re aiming for, or have you just thrown out a vague target, like $1 million?
Do you have a monthly and yearly budget that you stick to, or are you just seeing how it goes?
Be honest with yourself. This is YOUR retirement we’re talking about.
So now that we’ve identified the problem, all we have to do is solve it. And you can do so by following these 3 steps…
1. Make a real budget
Sit down with your family and talk about your money. Create a budget that will get you to the specific goals you have. This may take some time to work out, but it’s a vital task that will be well worth the effort.
And use websites like BudgetTracker.com to help you out with this process.
2. Create milestones
Like a video game, you need checkpoints to let you know you’re on the right track on your way to retirement. If you need X amount when you retire, figure out how much you should have by age 35, 40, 45, and so on.
If you get to 40 years old and don’t have the amount you planned on, adjust accordingly.
And also make milestones for things like paying off debt. Give yourself deadlines, and be strict with yourself.
3. Invest
One of the most important lessons I’ve learned in my life is that investing correctly can be like growing money out of thin air. It’s a critical part of reaching your goal amount of savings.
And whether you’re a seasoned investor or have no idea how to start, we at The Midas Legacy can help…
