Retiring Successfully and How to Overcome Unforeseen Emergencies

By Ben Mosebach

If you ask most people if they’re ready financially for retirement, most would say “no”. If you’re one of these people, there is still time to add to your savings so you’re ready when it’s time to stop working and start relaxing. From cutting expenses to putting away money you’ve saved on purchases, every cent counts when it comes to compounding interest and making the most of the dollars you’ve been able to set aside.

Make Changes if You Haven’t Already Started Saving
A lot of people have a retirement account already setup and are regularly contributing to it. If you haven’t started one yet, it’s not too late to do so. Even if your income isn’t enough to regularly put aside 5-15% every pay period you can still put aside what you can. $20 or $30 once or twice a month doesn’t sound like a lot, but it will start to snowball once the interest on your account starts compounding. If you start eating at home instead of restaurants a few times a week, that amount saved can contribute greatly to your retirement savings in the long run. Even a small amount is better than nothing at all.

Don’t Chase High Returns Later On
When it comes to investment, being safer now prevents the temptation of high-risk/high-return later on when you realize you don’t have enough to fall back on when you stop working. Set up your retirement account to start withdrawing automatically from your paycheck or bank account every month. If you’re contributing a sufficient amount then it’s easier to collect interest on investments without having to constantly manicure them. If you’re at an age when retirement is around the corner and you don’t have the money you need to live comfortably, chasing risky investments can become a tempting proposition that doesn’t always end well. You don’t want to gamble with the only money you’ve set aside for when you stop receiving paychecks.

One of the smartest moves you can make is to find a certified financial and retirement planner to help you plan your investments and make sure you have enough saved by the time you're no longer in the workforce. They can properly analyze the risk of your investments and advise you on how to save money without creating hardship or a burden on yourself or your family.