For some of us, when we think about retirement it’s this far away, almost mythical place.
Maybe it’s something you’ve thought of for a brief moment, maybe it’s something you obsess over or maybe it’s something you avoid at all costs!
Wherever you are on the spectrum, the fact remains that at some point we will all seek retirement.
After speaking with my cousin during one of our weekly empowerment pow wows we got to talking about how some of us tend to avoid the conversation of retirement altogether, it became clear that there were some misconceptions out there.
For instance, do you know that women generally live longer than men, but some people think that we basically shrivel up into nothingness, or worse, die as soon as our colleagues throw that going away party for us at work! Yes, we go away, but not usually that going away.
Hopefully, we get to enjoy the fruits of our labor, with the people we love, living the life we planned.
The key is just that: planning.
Longevity is a double-edged sword. So, what can we do now to ensure that our money works for us later when we can live 25-30 years in retirement?
For starters we must actually talk about this stuff!
I get it. We are busy!
We have careers and families, we are members of countless organizations, we have to-do lists, deadlines and too many other things that take precedence. But just like that credit report sitting in the junk drawer, just because you don’t pay attention to it, doesn’t mean it goes away.
Limit the uncertainty when planning for the future with these 5 ways to put your money where your future is...
1. Curb Spending: This doesn’t mean we don’t spend at all, it just means that we are less impulsive when making purchases (just because something is on sale doesn’t mean we have to buy it!!) and more thoughtful about where our money goes.
If we spend less on the things we think we need now, we can save more for the things we will need later.
2. Reduce debt WHILE building your emergency fund:
One does not replace the other. Pay down the debt with the HIGHEST interest rate FIRST (unless of course the interest is the same across all accounts) – increase the amount you pay each month. The higher interest rates will have a substantial impact on your finances – especially if the balances are high and it would take years to pay off with only the minimum. You can also use bonuses to pay down that debt faster. And automate your bill paying and automate your savings!
Make sure you are putting a minimum amount toward a savings account EACH MONTH as if you were paying a credit card. A good rule of thumb is 20% of your income, but if you can’t do that just work your way up to that number. Every little bit counts.
3. Set goals – or what we at Divine call “Empiring”:
Empiring is one of The Divine Principles and it is the process of imagining yourself at the far end of your life. You visualize everything you have done and accomplished. It is here that we discover and hone our true desires and intentions. What have you built? What have you created? What is your legacy? Now work backwards. What do we need to do now in order to get there?
Be BOLD!! Set attainable goals and milestones. After all, this is YOUR LIFE!
4. Seek help: No one has to go their financial journey alone. Do you have a trusted person or persons you go to for advice? Having a network is essential to building your Empire! We don’t have to know everything, but we must align ourselves with the people that do have information we need and are willing to share. At Divine we have a powerful live program called The Divine WealthWise Exchange where we guide women to transform their perception of their own financial power!
5. Be “Nimbliscious”:
And finally, “nimbliscious”, which means we are open and flexible to new possibilities. The journey of our finances is not linear. We have many ups and downs along the way. The key is to remain optimistic and open to new ideas and different ways that get us to the same destination: Financial freedom.
No one will experience the same Empire building process – so don’t compare yourself to anyone.
Create your Empire. Your Way.
Ready to ditch the traditional approach to wealth creation and asset management? It’s time for your dreams to come to life with our innovative and proven process, WealthDesign Financial Planning.