For most people going into the work force today there is very little possibility of being able to enjoy some sort of pension plans as these plans are becoming more “extinct”. Such pension plan facilities are no longer a requirement or a compulsory addition to an individual’s salary deductions.
Therefore without such allowances in place for retirement the individual would be wise to start a saving plan to accommodate the retirement phase of his or her life.Learning to lock in a certain amount as soon as possible towards a savings plan will allow the individual to plan accordingly, thus ensuring this said sum is systematically allotted.
Making this a habit that comes naturally will help to make the entire saving exercise both easy and accepted. It will also allow the individual to work round other financial commitments to ensure the savings contributions are not effected in any way.Besides this the individual will learn to be disciplined and thus create a comfortable spending habit from a very early on age.
The percentage of the savings should also be increased according to the job advancements made.This would ensure the savings amount becomes healthier which in turn would ensure a more comfortable retirement phase. Investing in suitable savings plans will also allow the individual to make tax relief claims which should work as an incentive to save even more or provide the funds to invest even more towards a suitable retirement plan.
Savings Is Never Enough: Invest Now
If an individual is only going to depend on a savings plan for retirement, the eventual amounts saved may not be nearly enough to support a comfortable retirement phase as the inflations and value of the money will definitely be lesser as time goes on.Therefore there is a serious need to look towards investing in other tools that may provide comfortable returns that would add on to the savings plan in place.
The following are some recommendations on other possible areas that should be explored with the intention of creating investment plans for retirement:
Investment planning – this area can provide the individual with platforms where the money works on fetching a better than average interest earnings by planning the investments at the right time and choice. These usually provide with good return on the values over time.
Real estate investment – real estate investments is all about committing funds to entities, such as various forms of properties that will eventually yield suitable income earning revenue for the individual. There may come in the form of rentals, leases and proper deals, where the properties bought can be sold for very good profits. These are all ways to create suitable savings possibilities.
Bonds and securities investment plans – these can bring about effective investment growth that will eventually contribute toward the funds that can secure a comfortable retirement phase for the individual. The long term investments may come in the form of bonds such as life assurance and death policies. Besides this there are also possibilities investing in government bonds and other entities.
Endowment policies – these are also another very good option to take up in the quest to create a comfortable savings platform to retirement. Paying towards such plans early on, will create an ideal source on income eventually.
Financial Success Isn't Difficult
Financial success isn't a hard task to master. It simply takes dedication, hard work and a little old fashioned commitment.
But it also takes a little knowledge. Too many consumers are ignoring what are financial truths. They run up large amounts of debt just to appear successful to those around them. They surround themselves with things that only make them feel better for a minute.
They ignore the fact that a debt-free and well managed financial life is a wonderful way to eliminate stress, which is all too common in today's world.
What do you need to do to become financially successful?
First, you need to spend less than you earn. Sounds easy, but it really isn't. It is easier to spend less than it is to earn more. You simply have to cut your costs. You have to stop charging on your credit cards and you have to stop shopping. Look closely at where your money is going. Look at what you already have around you. Get all those projects completed before you buy things for a new project.
You have to have a budget and stick with it. Budgets don't tell you how to spend your money, they tell you how to save your money. You can easily see where your money is going. You can identify areas that you can cut back on. Then, you can set spending goals. A budget is a great way to challenge yourself. There is nothing better than saving more money than you thought you could. Surprise yourself with a budget that works.
From your budget, you should be able to find the money to start paying off that credit card debt. If you are severely in debt, you may need to get a second job and sell some things to get a head start. Stop using those cards and start paying them off. They are draining the life out of your finances on a daily basis.
You should be contributing to a retirement plan. Research your options and take advantage of them. Don't wait until tomorrow, it will be too late. Start now. When you pay off your debt, put that money to your retirement as well. Who knows -- you may be able to retire early.
Once you have your debt paid off you should have a savings plan. There are goals that you can set for your savings. You may want new furniture or to go on a vacation. You should also save at least three to six months of money to cover your monthly expenses in the case of an emergency. This will cushion your budget from any repairs, emergencies, illnesses or job losses that may happen.
Financial success isn't difficult. It is simply a habit that you have to nurture and maintain. Take the time to sit down and get started. Work on it until it becomes second nature. The more you work on it, the better you will become at it.
Preparing Your Finances
Cash and Cheques – What to Bring?
There’s no way that you can bring all the cash you’re going to need for an indefinitely long journey with you! For that reason then, you’ll need to bring cards, cheques and more. At any given point, you should have enough money to last you about a week. This will ensure that you won’t get into trouble if you should lose your card and you’ll still be able to get home or at least stay a few nights in a hostel.
Another tip is to keep a little cash separate and safe. For example, try keeping some in your shoe and that way, even if your things get stolen, you’ll have some cash to get by! You can also try using travellers’ cheques. These can be cashed in abroad but require ID, which means they’re useless to anyone who steels them from you. If you have life savings, then make sure it is very difficult for anyone who gets hold of your things to access them. Security is a big issue when you travel.
You’ll need to let your bank know that you’re no longer at your current address and you’ll probably want to use a parent or friend’s address instead. You also need to speak with your bank about withdrawing cash. Make sure you’re with a bank that makes it easy for you to get money out abroad and consider switching if yours carries a hefty fee. Better yet is to get a credit card.Not only do these work abroad but they also protect you against having your cash stolen.
Because the money isn’t yours, it will be on the credit card company to chase it up! Another tip is to consider getting a PayPal card. This again gives you an extra layer of security by allowing you to shop without handing over bank details. And better yet, you’re likely to get paid by many clients online through PayPal. Thus the money never needs to even visit your bank account!
The hope of course is that you’re going to earn money online in order to finance your trip but it can also be useful to have other income streams. One, as mentioned, is to rent out your home, in which case you’ll probably want to use a property management company to handle the day-to-day administration and you’ll need a storage unit to keep your things.
You’ll likewise need to find storage if you are renting and you’re not going to have anywhere to come back to! Another option is to take out a loan. This might seem reckless but again, the way to look at it is as spending money on what is likely to be one of the most amazing and transformative experiences of your life. It’s far from reckless or a waste. And a good option here is to get a PayPal loan!
This works very well with the PayPal card option (because you’ll be able to fill your PayPal account without worrying about withdrawing), it has zero impact on your credit rating and you will be able to pay it back out of payments you receive from clients and customers! In other words, you’ll only need to pay it back as your online earnings are working out.
You don’t need to have a big lump sum of money to go travelling like this but if you can get some from PayPal or another source, then it will free you to explore more openly and worry less about cash!
Finally, it is always a good idea to plan your trip and to pay careful attention to your budgeting as you do. Plot a route through the countries you wish to visit while ensuring that you’re going to be able to afford to visit them on the salary you’re likely to be earning!
Again, try looking for ways to cut cost – such as using SkyScanner to find the cheapest flights, AirBnB and Couchsurfing. There is a resource sheet that comes with this ebook and if you check that, you’ll find plenty of excellent tools to help you plot your trip and save money on the road!