Avid readers of my blog, or anyone who has read the tagline, will know that I started writing it while I was still in college. During this time, I wasn’t blogging for the hope that one day I’d have an online money making profile. It was purely because I loved to write and wanted an outlet for my weird and wonderful passions. Little did I know that I was already taking a step towards a more financially stable future. I recommend that anyone in their twenties or even late teens does the same. You have to consider what happens when you retire and stop making a fixed income. There are two reasons for this. First, it will be here a lot sooner than you think and second, if you’re smart you can save enough to retire earlier. So what are the steps that you should be taking?
Set Up A Second Income
If you already have a great income, setting up the second one is a brilliant idea. It means that if anything happens, you’ll have something to fall back on. But it also allows you to put any money you make when things are going well straight into savings. Basically, you can fill a nice cash cushion without even trying. You won’t have to worry about taking money out of your first income each month to put it towards savings. You’ll already have covered that need. What type of second income am I talking about? Well, blogging is as good as any. It does take awhile to reach a point where you’re making a profit, but no one said the effect needed to be instant. As long as you’re building towards something, it’s worth doing.
You can also think about investing some cash in other areas. If you only have a low amount of savings you might think that there are no options open to you. But that’s not the case at all. Look into penny stocks. These low-risk shares are perfect because they don’t cost a lot at all. But there is the chance that they could massively grow in value if you leave them alone for a few years.
Use The Pros
There are plenty of people who offer their experience and wealth of their wisdom to help others make money. An example of this would be any financial advisor offering an SMSF. What is SMSF? Well, it’s basically a super fund that you can run yourself with the help of an advisor. By doing this, you can make sure you keep your finances in check and under control. At the same time, though, you can grow the value of your savings so when you retire you have a lot of money to rely on.
Don’t Spend!
Finally, if you follow this plan, you will find you build up a considerable amount of money long before you retire. It’s important you don’t break this pension pot open as a lot of people do. Research shows that many people use their pensions long before they retire. They think they have time to fill it up again. But as we’ve already explained, life is a lot shorter than you think so be careful.
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