I’m back again to share some great content from Personal Finance for Dummies book. This time it is about retirement. Do you think you’re late for saving for retirement? Ask me and my answer is yes. But in this book, Eric Tyson give some good recommendations for cover the time we lost :-
Question Your Spending
– There’s two ways to boost savings either earn more money or cut spending (or do both). Most people spend their money nearly as thoughtfully as they earn. So, choose which option is better. As for me, I choose both. Learn this but writing your spending everyday at your own budget planner.
Be more realistic about your retirement age
– If you extend the age at which you plan to retire, you will get double benefit : You’re earning and saving money for more years and you’re spending your nest egg over fewer years. If your job is stressfull, try to fing other’s job that makes you happy and consider working during your ‘early’ retirement years. For me, I want to retire as early 45‘s at my current job. As my saving is not enough, I need to find other alternative. I’m took blogging as a serious job and this financialblog has become unique to ensure the quality of the content. It is important to ensure this blog could make me earn some retirement money. Other than that, I’ve plan to buy another 3 house in next 5 years for investment. It could be rent, homestay or flipping.
Use your home equity
– The prospect of tapping the cash in your home can be troubling. After getting together the down payment, you need to worked for many years to pay off the debt. There’s a ways to tap your home’s equity. You can sell your home and either move to a lower cost property or rent an apartment. Another option is reverse mortgage in which you get a monthly income check as you build a loan balance against the value of your home. The loan is paid when your home is finally sold.
Get your investments growing
– The faster the rate at which your money grows and compounds, the less you need to save each year to reach goals. Earning just a few extra percentage points per year on investment can slash the amount need to save.The younger you are mean more interest we could earn. I know that I’m not young enough but still can do a good investment. You need to find some short term, medium and long term investment. A short term such as business ownership, fixed deposit is one way while medium you can invest in unit trust and long term such as real estate property.
Turn a hobby into supplemental retirement income
– You have skills that could be put to profitable use. Pick something you enjoy and are good at, develop a business plan and get smart about how to market your services and wares. As people get busier more specialized services are created to support their hectic lives. As for me, writing is become my hobby and it could help me to earn few bucks.
That’s some of big point at Personal Finance for Dummies book. For full book, click below