Your Smart Retiring Plan (Article)

Define Realistic Goals

The first step to any successful plan is to actually start planning it. Set a realistic goal and define how you plan to get there. It's important to consider a few factors that include your income, your savings, your expenses and how long you've been working for.

Your age is very important as the earlier you start to save and/or invest, the earlier you can achieve your goals and reach your retirement.

Write down how old you are, how much you're going to save and when you plan to retire. Calculate how much money it costs to maintain your acceptable standard of living and how much you spend every month/year. You will then get a clear picture of how much money it would require to keep a good standard of living when you retire.

Start Saving "Yesterday"

It's the little things. The little this and that. The amount of money that people spend in little things amounts to a huge slice in a few years' time.

This money in things that make little difference in your daily life is best used if you invest them. The earlier you start setting your mind to save a little and see it grow, the better are your chances of a solid retirement plan. Saving is addictive when you see it grow, all you need to do is start.

If you're reading this, chances are that you should have started already, but don't panic. If you start today, you're still on time. Just don't postpone in the assumption that you'll have time to do it eventually. You won't. If you have leftover money, you should save it, invest it, protect it. It will be great to have it and use it later in life. Your future self will appreciate it!

Invest Wisely But Most Importantly, Diversify

Place your bets in a smart way. There are literally thousands of options where you can easily invest your money these days and see it grow.

You may assume it's the bank, but with return rates being so low, these days it seems like you actually LOSE money when you leave it sitting there.

Dig into P2P loans. Real Estate. Loan to little businesses. Invest in the stock market in things that will be part of the future such as Electrical Mobility, Sustainable and Renewable Energies. Bonds that have tax incentives. A little here and there and in a few years your portfolio may outgrow your expectations.

Got quite a bit extra? Invest in the housing market when prices are low. Rent it out and consider that those actives are physical. They'll always be worth something whether you rent it or sell it.

Live in a nice area? Consider temporary rentals in any of the famous online platforms. You can be missing out on huge gains if you leave it for later. Invest in that house and see your little business grow. You'll like the feeling of actually achieving an extra income out of thin air. That money won't only get your standard of living up, it will also increase the amount you can invest in other savings.

Be Realistic About Your Expenses

Get an expenses tracking app on your phone and register everything. You'll be surprised to find out how much it costs to shop in the supermarket every month. Or the petrol in your car. Those nights out. The magazines that you like to read. These things amount to a huge slice of our life and our income. Some things you can convert into surplus and invest them as suggested in the steps above, others you have to consider as fixed expenses that are part of your loss of income every month/year.

Focus on the actual expenses that are expendable. Can you actually save money cutting on anything you don't need?

Count on the expenses that are not your daily ones, such as healthcare, buying a new car every so often, new furniture or that holiday you deserve. Just because you can't really hold back your whole life to enjoy your retirement and have to enjoy and treat yourself. There's more to life than working and saving money. That makes the first step the most important as defining those realistic goals also depends heavily on the realistic way you look at your expenses.

Less Is More

If you're lucky enough to not struggle with debt and financial anxiety, make more with less. Earn 1000? Live like you would if you earned 500. Earn 500? Well, then, maybe live like you earn 400. Either way, don't go beyond and above. That little extra is precious. It's that leverage that will take you places when you're retired. It's the seed you planted for the crop you hope to collect.

Start thinking of money in a global way. Not in weekly or monthly terms but yearly. How much do expenses cost yearly? Where can you save? Are there better deals for the things you spend money in? Do you really need all the things you spend on? Have you searched for alternatives? Sometimes a little change can save huge amounts in the future.

Very often we can get by fine with spending less on things that we don't actually need and all that is required is to set our minds to be more sustainable in our lives. It's easy to be tempted and spend all the money in the World, but it's much more rewarding personally to ensure you're more efficient with your life. That's achieved by getting only what you actually need instead of what the market wants to sell you.

Think about what works for you and cut off all the things that aren't really adding more to your days.

You'll have only yourself to thank for it!

Review Your Current Expenses

We all have fixed expenses. Perhaps it's cable TV. Our electrical provider. Our mobile carrier. Our Insurance. The list goes on and on.

Are you sure you're getting the best deal?

If you're reading this, chances are that you have internet and actually know how to use it. After you finish this excellent piece of article, perhaps you should have a look at all those market comparison websites in your area. They will tell you if you're paying a lot for your services and most likely, you are. Sometimes it adds up to a lot of money every year. Don't be afraid to change if you're not stuck to a contract. You can make a better deal paying less. Or cutting off the extras that you rarely use.

Lookup for forums for each of those services. More often than you'd expect, someone is paying less for the same product you subscribe. Keep an eye open for new deals and never be afraid to change. The adversity to change is very often what keeps the price high in a certain service. Companies rely on their customers ’ resilience to change and the fact that they can charge more to provide less.

The best prices are always due in renegotiations and this is valid for most services we use. Very often you can get more for less and it's all a phone call away. Don't be afraid to let them know you'll quit even if you're bluffing. A lost customer is worth much less than a happy customer with a big discount.

Play on those concepts and keep checking the prices frequently.

Grab That Extra Income

You may have a nice job, but that doesn't necessarily have to be your sole source of income.

Convert those used items into cash that you can later invest. You would be surprised by the number of things you can sell online that you think are useless but are of use to others. Clothes. Books. Old furniture and appliances. Convert them to dozens, hundreds or thousands. Invest it all before you even consider spending it in nice things to treat yourself.

In a society that tends to waste so much, it's easy to overlook the true value of things. So many great items get thrown in a bin and people that own them pass on the chance to make any amount of money on them and, at the same time, have a responsible, environmentally friendly approach to them.

This is actually a great way to get rid of things you don't want making your living environment better. At the same time, someone else gets a great deal on something they needed.

Grab a part-time job, even if only for a couple of hours or every so often. There are surely tasks you can achieve and are good at. Sometimes it's simple things like painting a wall for someone, fixing a kitchen appliance, a computer or helping someone move home.

That extra, as little as it may be, will be part of your future portfolio. Do it now while you can. You will improve your skills outside work and still get something out of it. At the same time, you're helping your future self enjoying life. Everyone wins, but you win double!