How To Retire Rich

Financial literacy is important for everyone and as you know, we’re all looking for ways to be a bit more frugal and live a little more sustainably.

More money often means a better lifestyle, but it takes effort to achieve that. If you are saving for retirement, paying off debt, or just building savings and emergency funds, these five tips will help get you there faster and make managing your money easier.

Dealing with your finances well can make the difference between having a comfortable life and one that is stressful and difficult. Anyone can retire one day. But that’s not the point. You want to be able to live out your retirement the way you’ve always pictured it. Every person, every family, and every situation is different—but these tips will help you plan to be able to do that.

Track What You’re Spending

If you don’t know where your money is going, how can you budget? You’re probably paying for things by credit card and throwing money at it every month without even thinking about it. That’s the best way to get in over your head and spend money you don’t have.

So many of us blindly pay for things with a credit card and throw money at it every month. That’s the best way to get in over your head and spend money you don’t have. Track what you’re spending and review your bank accounts and credit card statements, regularly.

Keep a spreadsheet to track your spending and income.

A good way to get started on budgeting and to get a handle on your spending is to list all of your income and expenses in a spreadsheet. Review your paycheque, bills, and receipts to see where your money is going. This will help you to determine if you are spending more than you are earning. If you find that you are in the red, it is time to look at ways to cut back on your spending. One place you can start is by looking at your retirement savings plan. Are you contributing enough to take full advantage of employer matches? If not, consider increasing your contributions. Even a small increase can make a big difference in the long run.

You know the saying, “A penny saved is a penny earned”?

Well, it’s true. If you’re trying to build up your savings, then you’ll need to be mindful of where your money is going. Start by making a list of all of your expenses—the little stuff and the big stuff, too! Then go through that list and prioritize what’s most important to you. Once you’ve done that, you’ll be able to sit down and create a budget that makes sense for you. Laying out wants and needs and budgeting accordingly will help keep your finances flowing in a healthy way.

Fifty percent of each paycheque should go to groceries, housing and utilities. We’d also consider your vehicle under the needs category because you have to be able to go buy the groceries and get to work! Only 30 percent of your paycheque should go to entertainment, shopping and hobbies. The final 20 percent should go into savings—both accessible and long-term for retirement.

Group Retirement Plans

If you want to retire rich, then you need to make sure that you’re saving as much money as possible. There are many different ways to save for retirement, including Group Retirement Plans offered by your employer. These accounts offer tax benefits that will help reduce your tax liability while also allowing you to grow your nest egg without having to pay taxes on it until you withdraw funds from these accounts during your retirement years.

Saving early is the key to a happy retirement.

You don’t have to wait until you’re 60 to start saving for retirement. The sooner you start, the more time you give your money to grow. You’ll be able to build a habit of saving that will help support you throughout your life.

Should you want to learn more about saving for retirement, there are many resources at your fingertips. Anyone can learn how to retire rich, so take advantage of all the opportunities and start planning your retirement today.