Retirement may seem like a long way off during your earning years, but it’s not. Breaking down your retirement savings plan will help you to see that it is possible to become financially independent without compromising on your basic values.
Here are four things to consider when deciding to save up for retirement.
1. Start as early as possible – Compound interest accumulates over time. Therefore, if you start your retirement investment earlier on in life, you allow more time for the interest on your nest egg to grow.
2. Invest – Give your money the opportunity to grow. This can only happen if it is linked to a clearly defined investment plan.
3. Set investment goals –Consult a financial planner in order to determine how best to invest your money. Channelling it into a diversified portfolio that includes both equity and debt will ensure that it grows.
4. Control your spending –Pay off expensive loans, save on your insurance and investigate your tax saving options. Make a few sacrifices – the sooner you start investing, the larger your retirement rewards will be.