Just a few years ago, many of us had our retirement dreams firmly in place. We were going to be able to retire earlier than we thought. Then the financial boom turned sour. Although retirement may have been pushed back, there are strategies to take to make it happen.
According to Ray Price in BottomLine Personal, “Based on my counseling experience, the people who stick with their plans and retire comfortably have similar traits.” Following are some of those traits.
Price recommends that people focus on long-term spending goals that redirect some current spending toward lifelong security. Following are more examples of how to save for retirement.
Don’t lease a car unless it’s for business. Leasing is a status trip and a waste of money. Drive a vehicle for at least four years after it’s paid off. You will soon save enough to buy your next car for cash.
Put your investment spending on automatic pilot. Spend less on elaborate vacations and trendy clothes. Have savings automatically transferred to an investment account every month.
Control your mortgage. Early retirement is much easier if your home is paid off. If you intend to retire early, get a 15-year mortgage with a lower interest rate. While monthly payments are higher, more of your money will go toward the future rather than the present. If you have a 30-year mortgage and it makes no economic sense to refinance, cut the loan term in half by adding an extra principal payment every month – or simply pay an extra $100 a month on a 30-year, $150,000 mortgage and you’ll slash its term to 22 years.