Nobody wants to work until the day they die. We all want to reach a point when we can just sit back, relax and enjoy the fruits of what we worked hard for over the many years of employment. This is why preparing for retirement is crucial. The problem is retirement planning is something many people put off until their retirement years. They don’t worry about it until they find themselves in situations they didn’t really imagine themselves to be in. So, if you have a picture in your head of yourself spending your retirement on your porch, by the beach or traveling places, it’s about time to adopt these financial habits and enjoy a worry-free and successful retirement.

Live within your means

You may have heard it a thousand times before, but living within your means is one of the most important steps towards financial success. Many people have gotten used to living from paycheck-to-paycheck and fail to adjust their lifestyle according to their income. Sometimes, they even spend more than they earn. If you don’t budget your spending based on how much you’re getting on a monthly basis, it will be impossible to set some amount aside for savings. On the other hand, if you make it a point to live within your means, you can easily start saving up and make your savings grow until your financial health dramatically improves.

Automate your savings

One of the reasons why we find it hard to allocate part of our income for savings is because it’s something we do manually. You literally have to take a certain amount from your salary and keep it somewhere. And because you know you have kept some money, you may (or maybe not) be tempted to use part of it when you run short of money. To avoid this from happening, it’s best to save your money in a bank or credit union for safekeeping. Better yet, take advantage of automation and set up automatic withdrawals into your savings account.

Increase your annual goals for savings

It is easier to achieve your financial goals if you try to increase your goals for savings. It doesn’t have to be done monthly, as doing it on an annual basis is good enough. This way, increasing your savings will be gradual, and the results will be significant. For example, you start by saving 5% of your monthly income this year. If it’s realistic, you can take 10% off of your monthly income to double your savings next year.

Avoid borrowing money

Debt, in whatever form, is still debt. Whether it’s borrowed money from a credit card or loan, it’s still something you have to eventually pay for. Unless it’s really an important investment like a house or a vehicle, avoid borrowing money as much as possible. Now, if you feel the need to borrow money to purchase something you can’t afford, you may want to save up for it instead of using your credit card as an extension of your wallet.

Keep track of your spending

Another important part of financial planning is keeping track of your spending. It’s vital that you know where all your money is going. This will help you stay on top of your finances. Keeping a record of your expenses will give you a closer look at the areas where you’re spending a little too much on. It will help you determine whether or not you can still trim down expenses on your weekly groceries, shopping, and utilities so you can set aside a bigger chunk for your savings.

Use cash for shopping

Using your credit card for shopping may convince you to spend a little more than you should because you know that it can be paid off later. On the other hand, if you only bring cash when shopping, you’re most likely going to avoid overspending since you have a specific budget to follow.

There’s no better way to experience a comfortable retirement than by preparing for it today. Adopt these financial habits and start your retirement planning so you can secure your future and enjoy worry-free retirement years.

If you’re ready to open your first savings account, please feel free to contact Calcite Credit Union. Our representatives will be more than happy to assist you.