After dedicating your life to 35-40 years of grueling work schedules, strict deadlines, perhaps retirement is the time when you would want to make up for all the lost time for leisure. But make sure that the efforts which you have put in all your life to build on a relatively tension-free post retirement life are well planned and duly executed.
In the wake of the global economic crisis today it has become a tad too difficult to strike a balance between your personal expenses and savings. But don’t worry! You do not really have to follow strict abstinence in order to save up sufficiently for the future. Plan it properly and see how your schemes come to fruition. Though the future is always uncertain, you cannot really afford to lead a completely unplanned life. Here are a few steps which you can take to avoid future worries:
Keep track of both your savings and expenses: As already mentioned earlier, you can afford to enjoy your life to the fullest while doing your savings as well. But planning the fun can be of help. Control your expenses duly. A perfectly planned expensive night out in a club or a resort with friends or for that matter a bit of self indulgence in the form of costly clothes and shoes can do wonders to your mundane work life. But make sure that these expenses do not convert in to a habit. Being frugal with your money, going overboard only once in a while will not really jeopardize your financial aspirations. However prolonged and unnecessary overspending can put you in a fix. Even if you overspend at times, it would be better if you note down the expenses as well. A bit of harmless self deprivation in the next month in a bid to make up for the expenses can also be practiced.
Take concrete steps: Barely saving money from the future from your present expenses will not do. The price of things will continue shooting up and you may end up discovering that all your hard etched out savings fall short of meeting you post retirement needs. Make sure your savings add up so that you can reap the dividends when you need them the most. How about a Relevant Life Policy? Ask your employer if you will be entitled to avail the benefits of a Relevant Life Cover that will ensure death in service benefits for you.
Try to have a firm grip over financial matters: Please be diligent enough to hone your financial knowhow like matters of tax advantages from your investments in insurances, mutual funds, ways to boost your savings etc. If you are interested in mutual funds take the help of the internet and financial journals to find out about their pros and cons. Please remember that it is not wise to carry out thoughtless financial practices. Relevant life insurance policies are generally considered to be safer investment options than mutual funds, shares and stocks. Thus be prudent enough and then invest.
Prioritize your goals: In this regard it must be mentioned that you should act more pragmatically towards your goals. Identify your immediate requirements and resolve on acting on them at first. For instance if you have got an education loan to pay off while you have landed up with your first job, your main aim should be to pay off that loan first. Your savings may suffer in that case, but once you are done with the loan, you can easily start investing in insurances, funds etc.