Recently, the age of retirement has risen from 65 to 70. That is absolutely unacceptable as it is difficult to maintain your energy and enjoy life if you constantly have to think about how to make ends meet. I hope the following guidelines will help you to save money over time. Please note that this is not a get rich quick scheme. If you are looking for that, you are reading the wrong article. This post is meant to help you grow your income over a period of time so that you can enjoy your life and take care of your family at this moment and enjoy retirement when you CHOOSE to retire.
- Save for Retirement: As soon as you receive your paycheck, have the bank put 15-18% of it toward your retirement plan. Make sure that it is automated so that you do not forget about it and are not tempted to touch it. If you have a retirement plan with work and your employer is matching your contributions, this counts toward your 15-18%. The beauty of this plan is that you don’t have to put away as much money and can use it toward something you need or enjoy. Nevertheless, even if you have a retirement plan with your company, put some money aside on your own as well as it is always best to diversify and not to put all of your eggs in one basket. Put your money into a retirement plan because the government will not tax you on it until you retire and start withdrawing the money. Do not withdraw from this account before then because you want to think about your long term investment and because you will be taxed on it as soon as you withdraw the money.
- Tax Free Savings Plan: Open up a Tax Free Savings Account, and contribute the maximum amount to this account because as the name indicates, the government will not tax you on your contributions. This can be used as your emergency / home or car maintenance fund.
- Education Fund: If you have children, contribute to this account because depending on where you live, the government will match your contributions.
- Checking Account: Put the minimum that you need to live off of (pay bills, grocery shopping, etc.) into this account as the bank does not provide you with interest on your money. You will need to see how many times you can withdraw and stick to that amount as the bank will charge you for going over their limit, so plan ahead for it and withdraw a large sum accordingly. Make sure to save at least one of your transactions for an emergency withdrawal.
- High Interest Savings Account: While the money in this is taxable, you can create different accounts for a variety of purposes, such as for gifts, specific visa payments, etc. The bank provides you with interest on each of your high interest savings accounting, depending on how much you have in there. This means, you can slowly watch your income grow.
- Credit Card: Shop around for the card that works best for you. It is best to stick to only 1-2 cards as it can be difficult to pay them off in a timely manner. Look for ones that have low interest if you miss a payment and one that offers you rewards that match your lifestyle and interests.
- Online Banking: Take advantage of online banking. Track your income, purchases and withdrawals. Make payments to your visa as soon as they are posted (If you have a high interest savings account, wait until the 2nd or 3rd of each month to get the interest before paying off your visa unless the payment is due before then).
- Cash On Hand: Always have some extra cash in your wallet, etc. in case you have trouble with your credit card or you go to place that only accepts cash.
- Fun Fund: Put some money aside for yourself. If you do not indulge, you will drive yourself insane. Put away about 4-5% of your paycheck for yourself.
- Free: Go on a mini scavenger hunt and check out all of the free entertainment around your city so that you are not always spending your hard earned money as soon as it comes in.
Please note that these points are not set in stone. They must be adjusted according to your life. This is a great place to start. Re-evaluate and altar your financial plan in time.
Additional Financial Advice:
Additional Financial Advice:
- First save for your retirement BEFORE thinking about your child’s education plan because while they can take out a student loan, you cannot do the same for your retirement.
- Make sure you have cash on hand to pay off your bills. If you do not have the money, do not buy the product.
- Donate with a grateful heart, for it is giving that we receive abundance.
- Before you do anything, if you have a partner, make sure you discuss your budgeting plan with that person so that you are both on the same page.
- If you have children, remember that you are their first teachers. Children learn by watching their parents, so talk to them about having a financial plan and teach them about budgeting by doing it yourself so that they can learn from you.
If you are interested in teaching you are interested in teaching your children about gratitude, please visit my store to learn more about the Gratitude Journal Prompts for Preschool & Kindergarten Students, Gratitude Journal Prompts for Primary Students, Gratitude Journal Prompts for Intermediate Students, and Gratitude Journal Prompts for Secondary School Students & Adults.
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