Financial planning and retirement planning go hand in hand. You might think that the sum of all your financial planning efforts is to grow your own net worth, but in reality it is to support you during your retirement.
I must admit that I never gave retirement a thought during my first thirty odd years as an employee and entrepreneur. My focus was to provide for my family and to be able to afford some luxuries and especially overseas travel. I was fairly successful in achieving that, but the wake-up call came when I turned fifty and realized that my retirement provision was hopelessly inadequate.
Don't make the same mistake. Give as much attention to your retirement planning as to your financial planning for wealth building. The sooner you seriously nurture your so-called 'retirement nest egg', the easier it would be by the time you approach retirement to make adequate provision.
It is my opinion that it is too easy to get a loan against your retirement provision plans. On the surface it appears to be 'cheap' loans, but it practically put the brakes on your retirement provision.
Your financial planning and retirement goals should focus on getting out of debt as soon as possible and to contribute as much as you can to your tax deferred retirement accounts. It might mean that you'll have to moderate your spending.
As tough as it may sound, the truth remains that if you want to build wealth you must stop being a consumer! It is very difficult to do this in our society where it seems that everybody around you is consuming and spending like there is no tomorrow. What you've spent is gone. And often you don't even have a nice memory of the indulgence!
Have a look at our page on Average Retirement Income. Would you be able to survive on that annual income?
I rest my case!
You are the best qualified and available person to re-engineer your own lifestyle. Start tracking your own spending. Think twice before you buy the next gadget. Drive your car another year or ten. It all adds up. It is often very difficult to increase your income. The only other option is to scrutinize, and brutally reduce, every financial commitment you have.
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