Nowadays, people are increasingly aware of the importance of having savings for old age, when the body is increasingly incapacitated and income is also decreasing drastically. A calm and prosperous old age is everyone's dream, but it does not just come by chance but must be fought hard and with great discipline. Here are 5 steps to prepare old age savings for a prosperous retirement as follows:
1. Start saving as early as possible.
Saving is the first step towards a prosperous old age, it is best to start from the time we can make money, because age will be retroactive to the retirement target, if it is postponed it will decrease further, if the retirement target is at the age of 65 and is currently 25 years old then you will have time 40 years to prepare for retirement.
2. Create a clear financial plan
Make a clear and careful financial plan for retirement funds, then we also need to calculate the funds needed for daily living expenses. Always record all income and expenses and create a spending budget.
3. Choose the Right Investment Instrument
The type of investment needed for retirement is long-term investment. Some promising long-term investment instruments are blue chip shares, property and gold.
4. Maintain Financial Health
Make sure you always maintain financial health, avoid unnecessary expenses and also avoid consumer debt, keep the debt ratio below 30% of net income or tax-deducted income. Prepare an emergency fund of at least 6 times your monthly expenses if you are single.
5. Look for a Side Hustle
We need large funds to prepare for old age, so we need to look for a side hustle, both offline and online, use your hobbies or skills to increase your income to be able to meet other needs such as having a house, educating your children, etc.
1. Start saving as early as possible.
Saving is the first step towards a prosperous old age, it is best to start from the time we can make money, because age will be retroactive to the retirement target, if it is postponed it will decrease further, if the retirement target is at the age of 65 and is currently 25 years old then you will have time 40 years to prepare for retirement.
2. Create a clear financial plan
Make a clear and careful financial plan for retirement funds, then we also need to calculate the funds needed for daily living expenses. Always record all income and expenses and create a spending budget.
3. Choose the Right Investment Instrument
The type of investment needed for retirement is long-term investment. Some promising long-term investment instruments are blue chip shares, property and gold.
4. Maintain Financial Health
Make sure you always maintain financial health, avoid unnecessary expenses and also avoid consumer debt, keep the debt ratio below 30% of net income or tax-deducted income. Prepare an emergency fund of at least 6 times your monthly expenses if you are single.
5. Look for a Side Hustle
We need large funds to prepare for old age, so we need to look for a side hustle, both offline and online, use your hobbies or skills to increase your income to be able to meet other needs such as having a house, educating your children, etc.
