Most people find it difficult to save or invest for the long-term because it is much easier to spend money on something that can be enjoyed today than to invest and wait for a reward many years from now. In order to combat this financial strain and balance current financial responsibilities with long-term ones, there are several tips and tricks to follow.
Most importantly, you should determine what your long-term goals are. You need to know how much money you require each month to meet your basic needs, and how much additional money you require to meet your wants. Budget in basic ‘needs’ like food and shelter, but add in things like regular vacations or additional ‘wants’ to ensure you are content in your retirement. Then, work with your current savings to see if your retirement income will meet those needs. If not, you may need to either adjust your wants and needs, or you may need to adjust your savings to supplement everything that is not covered.
One way to increase your retirement income is to consider investments rather than savings. When you do this, you get the best return for your money in the long-run. We can explain the benefits of a diverse portfolio to give you more flexibility in your earnings and pension potential.
In order to ease the strain of retirement, you should always remember that every little bit counts. In other words, saving just a few dollars every month really adds up over time due to compound interest. At the same token, investing a few dollars every month provides you with additional benefits by shielding you from market volatility. One way to ensure you save every month is to pay yourself first and set it up so you can automatically transfer money from your pay cheque to an investment portfolio the day you get paid to ensure you save money.