4 ways to save enough money now to retire later
More than half of Aussies don't think they'll have enough money to retire, yet aren't doing anything about it.
Retirement is a dream that is getting further and further from the realm of possibility for many.
In fact, new research shows that 53% of Australians are concerned they won't have enough money to retire when the time comes, and an even scarier number is that over half of these people aren't doing anything about it.
I hear stories constantly about people putting off taking action and making changes because they think they have time or it's too difficult, and by the time they are ready it's too late.
I want to encourage people to think of their Plan B as early as possible. Even setting up a direct debit of $20 a week into your super when you're 20 means you'll have a huge amount by the time you retire.
If you're one of the many who wants to improve your financial situation to better plan and prepare for retirement, but simply aren't sure how, here are my top tips to getting started.
1. Decide how you'd like to spend your retirement
Would you like to travel the world? Is your goal to retire overseas? Or do you simply want to live a comfortable life in the house you will own?
Whatever it may be, it's a good idea to start thinking about what retirement looks like for you. That way, you have a goal to work towards and it makes day-to-day changes seem easier.
2. Understand how much it will cost
Once you have an idea of how you'd like to spend your retirement (and you're allowed to change your mind, don't worry!), it's smart to start thinking about what this might cost per year.
This will give you an understanding of what contributions you should be making to your super or savings right now.
The dollar amount will likely shock you, but it's important to realise this sooner rather than later.
3. Invest in your super fund
And I don't mean just financially. You need to take the time to understand your super and how it will benefit your future.
If you have several balances, it might be good to start thinking about how to consolidate them to help easily manage your money.
Calling your super fund to ask what other options it has to help its members, whether it be free webinars or personalised financial advice, can bump your account by thousands if you stay proactive.
4. Take baby steps, and stick with it
The sooner you start investing in your future the better.
However, the thought of retirement and money can be stressful, so taking the time to assess what you want and having a clear digestible plan in place will help you to reach your goals.
You'll likely have set backs, but every step you take today will greatly benefit you in the future.
Any action you take today, no matter how big or small, will greatly impact your future. It may seem scary to start this journey, but the sooner you do, the more stability and freedom you will have down the track. Trust me, your future self will thank you!
Vanessa Stoykov has over 2 decades of experience in the wealth creation space, is a best-selling author, and she is on a mission to help Australians get real about money.
Disclaimer: The views and opinions expressed in this article (which may be subject to change without notice) are solely those of the author and do not necessarily reflect those of Finder and its employees. The information contained in this article is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort. Neither the author nor Finder has taken into account your personal circumstances. You should seek professional advice before making any further decisions based on this information.