It is quite possible that you have purchased a lottery ticket at some time. If you win the prize, you already have a list in your mind of what you would do with the money: pay off debts, visit several countries and get to know their cultures, early retirement, paying for your children’s college education or buying a vacation home. In short, that list of dreams, or “bucket list”, could be endless.
But, what happens if you do not win the lottery draw? You may think that your plans are discarded, when in reality you should plan and strive for your goals without depending on luck. Of course, if you receive an unexpected amount of money, welcome it with enthusiasm! But the best thing is to have your savings and investment plan up to date.
To have control of your finances and enjoy your retirement, following are several strategies that will allow you to plan and comply with your bucket list or inventory of goals:
- Add the savings and investment tactics to your bucket list. “This list will expand your enthusiasm, perspective and pleasure on how you decide to transform your savings into income for retirement,” says Robert Laura in an article for Forbes magazine. Laura, an expert in retirement topics, went further by assuring that you, as an investor, will feel great emotion by managing your retirement accounts, always seeking to generate greater profits. He compared this emotion with what retirees feel when they achieve their dream of swimming with sharks or jumping with a parachute.
- Save 10% of your gross income. This will require to make some adjustments, such as reducing unnecessary expenses and opening a savings account. It is recommended that you leave this account alone, unless an emergency comes up that requires you to withdraw funds from it.
- Give the account a name. Some time ago, as part of a workshop, Kurt Schindler, vice president and main spokesperson of Finanzas en tus manos (Finances at your hands), Banco Popular’s financial education program, recommended to give a name to your savings accounts. He said there are studies that show that doing so it increases 20% the probability of saving more each week. There are accounts, such as USave, that offer the alternative of naming your savings according to the purpose and the term you need them.
- Transfer money automatically. Another Schindler’s tricks is to transfer automatically the money to the savings account upon receipt of each payroll deposit. That way, the money for your retirement will be deposited before you think about spending it.
- Save the money from a paid off debt. If you know that in six months your car will be paid off, continue setting aside the equivalent amount of the payment, even after the payments are completed. Save that money in a savings account.
If you follow these recommendations, you will see it is easy to attain your dreams. You will need focus, discipline and a helping hand from an expert who can guide and support you during this process.
Remember, your retirement awaits you. This is the right time to collect the harvest from your hard work. Think about it, even when a person receives inheritance money or a millionaire prize, you can end up with financial problems during your retirement if you do not plan for this stage.
Act now since, even if your retirement is far away, 20 years go by fast. The first item in your bucket list should be to plan and organize yourself for retirement. And then, if you want, you may also buy a lottery ticket, always keeping in mind moderation and good judgment.
Do not forget that planning will help you to attain your great prize: peace and economic security during your retirement. Get going!
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