Being financially secure and comfortable in retirement is sadly not something that is an entitlement. It takes planning and a certain amount of work. You grind most of your life to secure the funds for a happy retirement, yet the work is not done. To maximise your new-found freedom, you will need systems and planning in place to ensure financial flexibility, comfort and ultimately the lifestyle you’ve been gearing towards.
We’ve outlined five possible methods you could employ to enhance your savings and be comfortable in your retirement.
- Investing is an option. If you have built up a healthy nest egg, the temptation could be there to put some money into something you feel passionately about. You may even be approached with investment opportunities as often is the case. I’m talking about investment in business as opposed to banking. Maybe you’ve dipped your toes in the property market and enjoyed what you experienced? There is nothing wrong with a well-researched investment in a business venture. Just make sure you’re armed with the facts and you plan accordingly.
- Question everything. This is your money, your future, your retirement. So don’t let things drift along without questioning whether they are right for you. Talk to pension review experts, talk to your bank, approach your financial advisor. Make sure your money is growing to its maximum capability.
- Manage and monitor your cash flow. You don’t need to necessarily go into balance sheets, projections and forecasts, but it’s a great idea to have a handle on your cash flow. You may find yourself in need of a boost from time to time, so by being 100% aware of what you have you can make decisions. Know what you are worth and know what you spend in relation to what you bring in. You can never know too much about your financial situation.
- Save aggressively when you are doing well. If you are still in employment, and are enjoying a particularly fruitful period, maybe add more to your savings than you usually would. Spikes in your earnings should mean spikes in your savings if you are doing things correctly. You may have seasonal trends in your earnings so take advantage of the ups and compensate for the downs.
- Last of all, do the small things. Saving energy around the home, keeping all your coins and spare cash in jars, and selling unwanted items all seem like small token efforts but they genuinely do add up over time. Don’t underestimate the value of a little personal thriftiness.
