Smart Retirement Planning Lets You Enjoy Life Now While Setting You Up for Success in the Future, Too
When it comes to your retirement plan, it can be difficult to strike the right balance between saving and investing enough to ensure you reach your future goals, while also allowing yourself to spend enough money to genuinely experience life in the meantime. You may find yourself in one of two camps: you’re either so focused on saving money for the future that you’re missing out on experiences in the present, or you’re so focused on enjoying yourself in the moment that you’re not saving enough for the future.
A successful retirement plan helps you find the perfect balance between your saving habits and spending habits so that you’re able to both enjoy the here and now while also properly preparing yourself for a financially successful future. If you find yourself struggling with finding that optimal middle ground for smart retirement planning, try these three tips.
Your Retirement Plan Tip #1: Determine how much you need to save
The best way to be sure that you’re saving enough money for your future is to work backward. By focusing first on how much you must save, you’ll then be able to use whatever is left for the here and now. Determine how much money you’ll really need to save to ensure that you’re financially secure later in your life. To find an accurate savings goal, you’ll want to consider a number of factors, such as how much your goals will cost, how much it will take to fund your ideal lifestyle and the amount of time you have between now and when you’ll need to start depending on your savings.
Generally, it’s recommended to save at least 20% of your gross income. However, if you want to achieve financial independence sooner rather than later, you may want to consider adopting more aggressive saving habits.
Your Retirement Plan Tip #2: Allow space for your plans to change
Now that you have a savings goal established, that doesn’t mean that it must be set in stone. In fact, it’s better if it’s not, as you’ll want to be prepared to adjust your financial plan and saving habits throughout life as your circumstances change. Perhaps you experience a year where you don’t make as much as you initially expected and, therefore, can’t save as much as you had hoped. That’s okay – it just means you’ll have to readjust your plans (and your spending habits) accordingly. The key is to find a starting point for your savings journey, not a sticking point. If you find that something isn’t working or you’re not getting to where you want to be on the timeline you had hoped for, then make the appropriate adjustments to your plan and go from there.
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Your Retirement Plan Tip #3: Maintaining balance isn’t about consistent perfection
Ultimately, the perfect retirement plan balance between saving habits and spending habits is going to look different for everyone. Not only that but what seems to be the perfect balance for you in one phase of life may look completely different in a different phase. Perhaps you get aggressive with your savings for five years so that you can relax more in the future and switch your focus. Or maybe you need to fund something right now, like starting a business or sending a child to college, so you’re saving less today but plan to make it up in the future. Whatever the case may be, keep in mind that periods of your life where you’re able to enjoy low expenses are great opportunities for you to really buckle down and boost your savings.
Creating a Retirement Plan That Serves Your Needs
Preparing for tomorrow while enjoying yourself today means understanding what you need from your saving habits and spending habits in order to feel like you’re fully enjoying the present, while also giving yourself peace of mind as you look toward the future. A strong retirement plan is one that allows you the room to both enjoy today and plan for tomorrow simultaneously.
If you think you would benefit from a conversation about finding the right balance with your retirement plan, contact HR Wealth Management at our Denver, CO office by calling (303) 750-6075, emailing info@hrwealthmgt.com, or to schedule a complimentary discovery call, fill out our contact us form, and a member of our team will reach out to find a convenient time.
