Will my finances last the distance

Let’s talk a bit about money – it’s probably close to being one of your biggest love/hate relationships and, if you’re anything like me, it’s been going on most of your adult life. Before retiring this was by far my biggest fear, it loomed on the horizon making the choices I needed to make ever more challenging and at times stopped me dead in my tracks from moving forward with any plans. It doesn’t have to be that scary so;

Here are the five steps to avoid financial stress:

Step 1 – Start your preparations early: some of the key questions start long before the big day arrives and planning for how your retirement will be funded and what sort of lifestyle your planning for should begin up to 5 years before you finally stop working. You want to avoid any unnecessary shocks at the finish line that could trip you over at the very last minute.

Step 2 – Be honest, make realistic estimates: depending on your circumstances, are you planning a dream home by the sea, a long-awaited caravaning trip or a global adventure travelling around the world, this is the best time to be honest and to identify just what your expectations for the future are and most importantly to recognise if you have the necessary funds to meet your needs.

Step 3 – Look further than your own backyard: why not spread your wings a little, your sums may not be adding up and remaining where you are now is looking less affordable in retirement. One way around this is to look for other countries or local regions that can satisfy your needs and make your dollar travel further. You have the time so, get going with your research to find the ideal fit.

Step 4 – Begin adjustments early – this is where you can get back on track, you’ve still got time to adjust your savings plan to fit with the kind of lifestyle you’re expecting. If you’re married or in a long term relationship this would be a good time to start talking about your dreams together and if you’re both on the same page.

Step 5 – Get professional advice – it makes sense to talk to someone who can help with understanding the numbers, advisors can help with the rule of thumb planning to allow for your individual financial situation and can be a valuable resource when getting things right.

Need more on how to save? Check out my post on ‘Your Guide to a Sensible Savings Plan’