Everyone wants to retire early but most people are not doing anything to prepare for an early retirement. You can’t just depend on your Central Provident Fund (CPF), Social Security or other government funds to help you retire comfortable. Sure, they can help, but they are rarely enough for you to be comfortable.
At the rate of inflation, you will also find that retirees need to save more and work for longer in order to enjoy their golden years. Preparing for retirement starts now, and you be telling yourself that everything that you sacrifice now will be important later in the future.
Keep Yourself Healthy
Sure, we have Medicare, but that doesn’t mean that you can ignore your health. Medisave can help you pay for most of your medical bills, but you still have to come up with a certain amount from your own pocket and those expenses can add up really fast. And we all know that as we get older, the more frequent those trips to the doctor get.
Most of the health problems that you are going to face when you’re older is a result of the choices you make when you were much younger. Unhealthy habits such as smoking, drinking too much, lack of exercise and eating unhealthy food will catch up with you as you get older.
While you’re still working and, hopefully, strong, you should try to maintain your health through regular exercise and diet so that you will enjoy a better quality of life as you get older.
Maximize Your Tax Advantages
I’m sure that none of us enjoy paying our taxes. We can’t avoid it, but there are ways you could minimise your tax burden. Legal ways, of course. The average layperson may not be able to properly understand the tax code, so I would advise you to hire a professional tax accountant to help you in your filings. This is especially true after every major event of your life so that you can see if you are eligible for tax breaks.
Live Within Your Means
With always-on online shopping and easy access to purchases, we are living in a time where gratification can come fast and frequently. But that does not mean that you should give in to every impulse that you have. As a marketer in a financial institution previously, I am fully aware of the tricks that brand marketers use to encourage you to make a purchase. Coupled with how easy it is to get a credit card, many people find themselves in a mountain of debt.
Do not be one of those people. Start saving your money for your retirement instead. You can do this by completely foregoing some unnecessary expenses such as buying that new handbag or having dinner at an expensive restaurant. Others, you can just try to defer to a later time when you have more spare cash.
Your Tips to Preparing for Retirement
What are some of your tips to improve your savings for retirement? Share with me in the comments below and I would love to add it to one of my articles.