If you are thinking about your retirement days you probably have the same worries as most of us do. How much income do I need and how can I save that much?
How Much Income Do I Need?
There are many retirement calculators out there, but it is sometimes very disappointing to find out you cannot afford to save as much as they say you will need to. In any case most people live paycheck to paycheck and we don’t hardly stop to think about exactly how much we need to retire on. Most experts have you factoring in that you will spend less in your retirement years, but is that really accurate?
First, figure out what lifestyle you want to live. If it’s the same as you have now while you are working; then that may require some additional income streams to be able to provide it. If you really look at the cost of living you will get a better picture of what things will cost in the future. Don’t use the government inflation rates as they are not accurate when it comes to things people really buy. Things like food, gasoline, heating oil, electricity and health care. Those items seem to go up continually at a rate that far exceeds the annual inflation rate. So you need to prepare for that.
Additional Income Streams
For many people the amount of retirement savings and investments will not add up to enough for them to live the desired lifestyle when they retire. In some case they may not be able to retire at all.
Financial experts seem to only talk about two options. Save more and live on less. Both of these are fine ideas but there is another option to add into that plan. Start your own online or home based business. Many people do not consider this option because they assume you have to go into debt or quit your job to be able to start and run a profitable business.
That’s just not the case anymore
Today for less than $100 you can start and own your own business. Having a second stream of income outside of your job is smart on more than one level. Yes it can be used to supplement your current job income. It also can be sent directly into your retirement vehicle. Or you can simply use it to reduce your debt. Pay off your home early or just save it.
The great news is that after you retire from your employer you can continue to grow your business and that income can grow to greatly supplement your retirement income. It may even surpass it one day.
For some people retirement means doing nothing but hanging around their home and for others it means traveling the world. Some people think that when someone retires they don’t do anything anymore. I think that’s not a very accurate depiction of the retirement years today. The old mentality of old people sitting in rocking chairs at Shady Acres Rest Home is a long way from most peoples retirement goals.
What if you had enough income to retire early what would that be worth to you? What if you could retire from your job 5 years early? Or even just 2 years? There are now tens of thousands of people who are growing various online and home based business opportunities. There are websites and even magazines dedicated to helping people find a business opportunity that can be built in your spare time. Some of the best are discussed in my other article here.
For most people today, retirement means freedom; to do what they want. When they want. There is no doubt that you will now have the time. But will you have the money?
Time and Money
Start to consider the current retirement plan you have. If you don’t have one start looking at what you need to do. Many banks and even your employer can help you get started.
It can be pretty scary to finally face the reality that you need to have more income to really have the retirement lifestyle you want. Both Time and Money!
If you look around many people who have a lot of time, don’t have any money. Likewise the people who have a lot of money don’t have a lot of free time.
Set your goals to have both, in your retirement years! That’s why we work so hard right?
#1 identify your desired Retirement Lifestyle
#2 Evaluate your current retirement plans to see if it matches up to #1
#3 Adjust the plan as needed. Not the goal. Keep your goals and adjust your plans, always.
#4 Set up additional income streams if needed
Don’t give up. Just keep thinking and learning about what the options are and how you can achieve your goals. Then make a decision and get started.
If you are interested in learning more about one of the best home based business options we have found take the Free tour!FREE Tour of a Simple Business that Pays a Full Time Income from Home
Thanks for reading!