Life goes by far too fast and retirement can creep up on us much faster than we ever realized. How prepared are you? With these three tips, I am going to help you get better prepared and not get caught unaware. These are not going to make you an independently wealthy millionaire. Comfortable retirement is about patience and perseverance, not using card tricks to win piles of poker chips and suddenly hitting it big. So, don’t expect these to revolutionize your life.
Time is ticking away and you need to make it work for you. Sign up for a 401K as soon as you have the option and pay into it regularly. You don’t want to starve yourself so that you can pump a lot into your plan, but you want to make a significant contribution. 401K plans offer you immediate tax deductions growth on your investment that is tax deferred and many companies will match your contributions. If you were planning to dump your money into savings anyway, a 401K is a better option with a higher return.
Save money by bringing the entertainment home and avoiding high expense leisure. I like to go the casino from time to time, but it can add up very quickly. I have saved myself money by playing cards and “gambling” at home with my friends for small sums of money or even just valueless poker chips. With the money that I was spending at a casino in the course of a single year I was able to turn my game room into my own personal casino with supplies and machines I bought from reputable dealers like pokerchips.com. This is now a place where I can have fun with my friends and enjoy myself while saving money. The same principle applies for other forms of entertainment. If you like movies, build a small home theater and save money on movie tickets. Do the math, you may be spending hundreds of dollars a year if you are a frequent movie patron.
Invest in stocks over bonds. Many people like the surefire growth of bonds but remember that inflation can offset the returns on bonds. That’s what the government and the banks are betting on. You will get a better return overall with some wise investments chosen by a skilled broker than a pile of bonds.