Whether you are a 9 to 5 worker, or an entrepreneur, retirement is a concept you need to embrace one day. Therefore, in this article, to help you out in your journey and make your retirement as convenient as possible, William Schantz recommends five ways to save for your retirement. Keep reading to find out what they are.
1. Schantz 20 Recommends To Make An Action Play
The first way you can save for your retirement is by taking the first step, and your first step should be to sketch an action plan out for what you want to achieve. Make a reasonable plan of what you want your retirement to look like, what age you want to retire, and how much will be enough for you. Once you know these crucial details, you can start working on a plan to achieve it.
2. Skip The Takeout & Start Cooking At Home
Once you have your action plan in place, your next step is to figure out where you can cut down on your frivolous spending. According to Schantz, eating out is one of the most frivolous spending one does, therefore, you should look towards it to cut it completely. Start saving your money for retirement by cooking your food at home instead of ordering takeout.
3. Deposit Retirement Fund Contribution Before Doing Anything Else
Another recommendation by Schantz is to follow the formula of paying yourself first. This rule dictates that as soon as you have your monthly pay cheque, the very first thing you should do is make a deposit to your retirement fund. Yes, that includes depositing the amount before paying the rent as well.
4. Limit Splurging on Materialistic Things
According to Schantz, one of the most prominent ways to save for your retirement is to forgo expensive materialistic things. A Tesla will do the same thing a Corolla does, and the same situation applies to a studio apartment or a multi-story mansion. Never chase materialistic things and make sound financial decisions so you would be able to save for your retirement and rest in comfort.
5. Start A Stash Fund
The final and most effective way to save for your retirement fund is to establish and maintain a stash fund. Yes, there are other ways to save for your retirement; you can have a 401k plan, a savings account, etc.
But Schantz believes a stash fund is still adequate because it has been around for a long time, and has proven to be beneficial. Besides, who doesn’t like having extra money to spend on a rainy day?
William Schantzbelieves everyone should be serious when planning for their retirement. Therefore, to help you plan it, the top 5 ways of planning for your retirement have been outlined above.. Please go through them and let us know which is the most effective way to save for your retirement.