Just as your kids are getting all hyped up about Halloween, adults feel the same about retirement. It's a time that most working professionals look forward to for a long time.
Kids love trick and treating, hoping to fill their bags with treats. Similarly, adults hope that retirement income and planning will give them a sweet reward at the end, and not trick them into falling back financially.
The key to a sweet retirement is financial planning and there are quite a few lessons we can learn from Halloween.
1. Plan Ahead
Most kids have a fully thought out plan for Halloween. They know what they're going to be months ahead of time, they map out the best neighborhoods to go to, have a strategy for candy collecting and possibly even a plan for what to do with it all when they get home. Kids strategize to get the most out of their limited time out trick or treating, and it’s the same with retirement planning for adults.
You need to have a financial plan for your retirement. You need to know how long it will take you to save the money you need, where to make investments and how to save more. The questions you need to ask yourself are:
- Have you started saving for retirement?
- Have you signed up for a 401k?
- Do you know how much you need to put each month in your saving account?
- Have you created an emergency fund?
- Do you make employer matching contribution to your retirement plan?
If you're serious about saving for retirement, you're going to need to start putting a plan into action. This will significantly impact the way you look at your income, and in the end, your retirement savings.
Whether you’re 25 or 45, the time to start saving is now. The sooner you start putting money into your retirement account, the better for your future. Also, consider getting a financial advisor, they can give you the best advice based on your financial needs.
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2. Resist Temptation
When trick or treating, kids are impatient—they want to eat their candy while trick or treating. By the time they’re back home, they’ve eaten half their lot and are coming down from a sugar high.
As adults, we often do the same—we spend a lot of money and then end up with half the savings gone. While you may enjoy the temporary euphoria after shopping or splurging on your favorite thing, it isn’t going to be beneficial in the long run.
Resist the urge to spend on unnecessary things. Keep a separate saving account, deposit a set amount regularly in it and then forget about it. Just like kids who save their candy can enjoy it for longer. Similarly, if you save money, you can reap the sweet benefits at the time of retirement in the form of a healthy bank account.
3. Hide Some Treats
Kids come home with a ton of candy on Halloween. While they do share with others and enjoy a few for themselves, kids are infamous for hiding away their candy—safe from the grasp of their hungry parents (remember Jimmy Kimmel's hilarious Halloween prank about this?). This allows them to reap the benefits of their reward long after other kids have finished their stash.
Take this same strategy and apply it for saving money and financial planning. When you earn your hard earned money, you spend some, save some and you hide some for good in your retirement account. While others may not save and spend all their savings and earnings, you can pull out your money at retirement and reap the benefits.
Related Article: 10 Simple Tips To Planning for an Easy Retirement
4. Stay Close to Your People
When your kids go out trick or treating, they must follow some rules and most likely, stay close by your side. They keep you updated on where they are, and stay close to each other in order to ensure safety. In the same way, it’s good to trust your family and share with them your future goals who can support you well. Also, having a financial planner on your side can make things easy for you.
Talk to a financial planner, explain your financial goals; both short term and long term. This will help the advisor to devise a long-term retirement plan for you so you can enjoy your golden years with comfort.
The thought of being broke at retirement is extremely horrible. It is important to ensure that you start saving for retirement today so you don’t have to face the horrors of increasing mounds of debt, home loans, credit card bills, medical bills and what not. It is ideal to get in touch with a financial advisor or a retirement planning advisor who can help create a suitable retirement plan for you to ease your worries and ensure your retirement plan is successful.
Remember to save the treats for later so you don’t get tricked into a financial rut. Start saving today so you can enjoy your retirement years relaxing, vacationing and enjoying with family and loved ones.