Most of us look forward to the time we can smash the alarm clock, kick back, relax, and enjoy retirement. After all those years working in our careers we deserve it.

Will you have the resources to lead the lifestyle you want as long as you want?

When I ask people how much of your lifestyle do you want to give up at retirement most people answer “none!” Many of them underestimate the funds they’ll need at retirement. I have a question for you. Which days of the week do you spend the most money? Did you say Saturday and Sunday like me? When you retire EVERYDAY will be the weekend!

Here are 2 things you can start doing now to enjoy a comfortable retirement lifestyle later.

1. SAVE

Saving is putting money away that will be there for you when you need it. It is money you cannot afford to lose. In contrast, most Americans think they are “saving” through “investments” such as a 401k or IRA with money fully at risk to market fluctuation. Ask yourself, “Can I afford to lose the money I am investing?” If the answer is no, find out what alternatives are available for you. I have seen far too many people I know who were close to retirement who are now in a position where they’ll have to continue working long past their expectations because their retirement money went down the drain with the market. Make sure you are saving money and build an emergency fund of six to eight months of living expenses.

2. Eliminate your consumer debt

Want you pay in interest on consumer debt will vaporize any rate of return you are hoping for on your investment. The average American spends 34.5 cents of every dollar to service debt. About 5 cents of their dollar goes toward saving. The other 30.5 cents goes toward living expenses. It would take a whopping 690% rate of return on those savings to equal what you are losing in interest. If any is getting a 690% rate of return PLEASE let me and the rest of us know! If not, let’s focus on getting rid of the debt.

A retirement you will enjoy in comfort takes planning and action now. It is a combination of saving, managing your expenses wisely, and preparing for the unexpected as well as your future goals and dreams. Make the reality of your retirement lifestyle as beautiful as your expectations!

For a list of questions you should ask yourself and answer now, email me at bonnie@kratosfinancia.wpengine.com