5 simple resolutions to help you retire on your terms.
As you consider your resolutions for the new year, don't forget to include your financial goals. Whether you're hoping to take a major step in your career, purchase an investment property or are nearing the end of your working years, here are some tips to help you plan for the ideal retirement:
- Boost contributions to your retirement accounts.
Just because retirement is getting closer doesn't mean you should take your foot off the savings gas pedal. Resolve to increase your contributions this year—even if it's by just a few percentage points. Make this your resolution every year, and you may even be able to retire sooner or enjoy a more lavish lifestyle once you get there.1
- Reduce lifestyle creep.
Now is the time to play around with your budget and see if you can live happily on a little less. If you can get used to a lower cost of living, you will find it that much easier to prepare for retirement and feel confident that you'll have sufficient funds for the long term.2
- Plan for retirement income.
As life changes and your expenses shift, so will your sources of income. Creating your ideal retirement budget now will help you figure out what you can do with your savings when you're retired and still healthy—whether it's travel or pursuits closer to home—and if you need to make any changes to your strategy to accommodate your interests.3
- Commit to eliminating credit card debt.
You'll enjoy much more financial freedom in your retirement if you can pay off your balances before you transition to this new phase of life. Create a debt repayment plan and kick to the curb for good those balances—and high interest rates.4
- Focus on your goals and priorities.
You have likely spent the last few decades focused on the financial needs of your family and children. Now you're standing on the edge of a whole new part of your life. It's the time to envision your ideal retirement: What do you want to do once you retire? Where do you want to go, and how will you spend your time?
Gaining clarity on what retirement means can help you decide what actions to take to make your dreams come to fruition. A clear image of what you want can also help keep you motivated during the last few years between you and retirement.