The general consensus is that only individuals with an enormous income can afford to retire and enjoy a period of time free from constant work. Yes, a higher salary can enable you to save more, but according to Bill Schantz, there is no reason to think someone with ordinary earnings can’t accomplish the same. It could only require a little more forward-thinking and modest spending.
Let’s start by dispelling a popular misconception: You don’t need a high income to save for retirement. In truth, Bill Schantz notes that you still have a lot of retirement savings alternatives accessible to you even if you only make a low income.
Bill Schantz’s Tips to Retirement Savings with Close to or Less Than Average Income
Automate the process of saving: One of the simplest ways to ensure regular saving is to automate the procedure. Setting up a direct deposit from your paycheck into a different savings account or contributing to a retirement account like a 401k or IRA are two ways to accomplish this. In this approach, since the money will be transmitted automatically, you won’t even need to think about saving each month, states Bill Schantz.
Keep your pay raises: Make it a point to save any additional cash you get through a job promotion or other source of income. This will enable you to maintain your current way of living while also raising your overall savings.
Live within your means: Spending less than you make is one of the best strategies to save money. Making some sacrifices in your daily life may be necessary for this, but it will be worthwhile in the long term. Try to live on less of your salary and put the rest up for savings.
Make saving a priority: Just like anything else in life, saving must be given top priority if you want to succeed. This means that you must prioritize retirement savings in your life. Making some sacrifices today may be necessary, but it will be worthwhile in the long term.
Create a budget and stick to it, stresses Bill Schantz: Setting up and adhering to a budget is one of the most crucial things you can do to save money. This will enable you to keep track of your expenditures and ensure that you aren’t going overboard in any particular area.
Be reasonable in your expectations: When saving for retirement, it’s crucial to be reasonable in your expectations. Expecting to retire as young or to lead the same lifestyle as your grandparents is unrealistic. Instead, put all of your effort towards accumulating money so you may have a nice retirement.
Plan ahead: Finally, having a strategy is among the most crucial things you can do. Knowing how much money you need to save and when you intend to retire is necessary. As per Bill Schantz it will be very challenging to keep on track without a strategy.
Although it may seem like a difficult endeavor, saving for retirement is definitely attainable if you are prepared to put in the work, Bill Schantz highlights. Just keep in mind to start early, set up automatic savings, and prioritize saving in your life. You will be well on your way to a pleasant retirement if you follow these steps.