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By Toni S. — Published May 21, 2018
If you are struggling with less than an ideal financial situation, and worried about having to endlessly work to make ends meet, you are not alone. At least half of the adult population in the U.S. has not made any plans for the future while many are stuck with huge credit card debts that take years to pay off. But it is never too late to start building a secure financial future. Here are some tips to plan for your future and retire in ten years.
Make a commitment: The first step is to make a firm commitment to yourself regarding building your nest egg that allows you to retire in ten years. If it involves making a lot of changes, the family or friends may object. The key is not let these deter you as you are the only one who can shape your future. Take professional help from a financial advisor if needed and write down the goals and action plan. Write these down and read them on a daily basis to remind yourself of your goals.
Cultivate saving habits: The next step is to start saving which can involve both, spending less and earning more. Leading a frugal lifestyle is the best way to build up your cash reserves that can be a shortcut to financial success. Cut down unnecessary expenses and luxuries that you cannot afford. Avoid using credit cards for impulsive purchases. Use public transportation and make all meals at home.
Monitor your cash: Setting up a system that tracks your cash inflow and outflow on a daily, weekly and monthly basis is a great idea to plug loopholes and maximize savings. Organize the information using a professional software, financial app or just manually enter into an excel sheet. Put in every detail including credit card dues, bills, income and others.
Build up the saving: The money you save by spending less can now go into a savings accounts. Find out which banks can offer more interest on your account to maximize earnings. It is probably the right time also to start investing the extra money into buying annuities, contributing more to retirement funds and purchasing securities. Deferred annuities give you maximum returns at retirement age as do CD ladders that give returns on regular time periods. Consult a professional to know which options are more suitable to your situation.
Make money instead of wasting: There are always ways to earn more by taking up an extra job or temporary assignments. Review your options and see if you can utilize extra time available on weekends to take up another job such as weekend coaching, online writing, catering or web designing. Learning the required skills to take up such jobs is crucial. Sign up for online or night classes join a professional tutorial or whatever it takes to brush up your skills. You could also use the added certifications to get ahead at your primary job.
Read more: Learn the tricks of the trade from the experts by reading up books on financial management. It can help gain new perspectives while you find the motivation to stay on your committed path to retiring in ten years.
Save up more: Once you start maximizing your earnings by a combination of earning more and spending less, the key is to not spend more. Save up the extra dollars all the way by reminding yourself of your goals.
Continue the same: Years of good financial habits can build up a cash reserve that looks healthy. Keep doing the same until you reach your goal of retirement.