Among many people’s long-term goals is to build wealth that will allow them to live a happy and comfortable life. As a person goes through life in general, managing finances becomes a bigger responsibility relative to the future they want for themselves. This is when life becomes a bit strategic when you have to look at where you would want your life to be in 30 to 40 years and how you can get there. To put it simply, that’s when you Think-Save-Retire.
More than just three words crammed together, the idea of Think-Save-Retire is to be a holistic approach to achieve long-term financial goals.
After adolescence, people feel the pressure to live and build a life of their own. This is when everyone seeks career paths and sources of income acquires and hones skills, and eventually plans to settle down and enjoy life. This is when you Think.
Figuring out sustainable sources of income you can be passionate, happy, or satisfied about is part of the planning stage. Once you have that, the next thing to do is to manage your cash flow and finances.
There are many other things to consider in planning your finances all the way through retirement, and there will be changes that can affect your plans along the way. But this is essentially why you need to plan. Think big and create plans. Backup plans are great to have too.
The Think part includes considering the future as well as your present. It is important to align your goals with your plan and turn plans into actionable steps to see progress.
You have to consciously think about your earnings and debts as well as the amount of money you can allot for saving and investment. Additionally, the time you have and the economic state are crucial factors to consider.
Thinking about what you have now and how you can manage it can be overwhelming, no matter how small or big. If you have the budget and time, seeking help from professional financial advisors is also a great option.
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How to Save?
Saving for retirement may seem complicated for some, especially for those with limited income sources or used to living a lavish lifestyle.
There are common and easy methods to start saving, even in small amounts. However, the finance industry has made it sound complex. If you don’t have an advisor, someone to guide you, it can be daunting and prevent you from taking the next proper steps, but it should not.
Saving is something you are doing for your very own benefit. You can do it even by yourself, with the right source of income, management, and consistency, as well as dedication to your goal.
There are simple yet effective ways to save money, like minimizing miscellaneous expenses, saving on utility bills, refinancing mortgages, and cutting taxes. Moreover, if you are saving for retirement and have a target amount in mind, you can start by keeping portions of your income or opening a savings account in banks.
Banks offer various saving accounts that you can open at a small amount with reasonable interest rates. This way, your saved money is also growing. If you have more to spare, you can then consider investing too.
The Save part is important because this will support your plan to reach your goal upon retirement.
When to Retire?
People cannot work for life, no matter how much they may want. We all grow old and lose our sharp abilities along the way; hence this is where we reach the point of retirement.
Retirement is more of a homestretch. After building a life, retirement is the time to live it up and be comfortable. It should be something you can enjoy. Who would like to spend the rest of their life still working or worrying?
The ideal retirement age varies per country across the world. But the most advisable time to retire is when you feel comfortable when you are satisfied with everything you have done or simply when your body tells you.
Some retire by 40 while others at 65 or 70. Having a realistic plan and doable steps can help you set a retirement age as well. Upon considering retirement, it is good to have pre-retirement investments prepared and your pension plans and healthcare plans, if you have any. Loans and debts are also best to be settled so you can enjoy your retirement worry-free.
Think, Save & Retire Smart
Think-Save-Retire is an approach that primarily aims to help people manage finances better and live and enjoy life to its fullest. It is not a standard rule but rather a customizable strategy anyone can use toward their unique goals, especially regarding personal finance and plans for the present and later parts of life.
Think, save, and retire smartly and strategically. It can serve as a pointing guide as you go along life and ensure you make the most out of it with commitment and dedication.