6 Signals that you will not retire rich in future
Who does not want to retire rich? Are you on the right track to retiring rich? In today’s article we will talk about some alarming signs that will show that there is a high probability that you may not retire rich. If you can relate to any of these signs, you need to work upon yourself to reach your goal. A careful thought on these things & working on them will put you on the right track to retiring rich.
1. You are not Saving
A very alarming sign that you will not retire rich is if you are not saving a part from your income. It is very important to inculcate the habit of saving in early years when you start earning. Your savings can help you cope well in times of uncertainties, urgent financial needs. This in turn helps you to reach your goals in a better manner. One should disciplinarily save some part of his income every month and even try to increase his savings as the income keeps on increasing.
2. You are not Investing
Only savings can’t help you retire rich, you need to make investments that will grow your money over the long term, and create a desired corpus to meet your needs & goals. Investing in conventional investment products such as Bank Fixed Deposits, Provident Funds will only give you returns that will just be able to cover the inflation as they provide very low real returns. Whereas investments in equity, mutual funds, some debt funds carry the potential to provide handsome returns over a longer period and parking your savings there will help you to create wealth & let you retire rich.
3. You face a month-end struggle
If you are left with no money or face financial issues at the month end, then you are in serious trouble. You need to work on managing your money well by keeping a track of your expenses. Tracking your expenses will help you identify the ones which may be avoided with little efforts and the ones which can be reduced.
4. You rely on Credit Cards & loans
Relying too much on your credit cards & loans lets you spend money very carelessly and hence puts you into a debt trap. High levels of debt comes with high interest payments that increase your expenses further, leaving you with even lesser money for savings. This becomes a big hindrance in your path to creating a corpus for your retirement when you have to take care of loan repayments & EMIs.
Also Read: How to select the best Mutual Fund?
5. Do not have financial goals
It is a sign that you may not retire rich, when you have not identified any financial goals over the short & long term. You will need to identify your future expenses, requirements of money and set some goals such as creating a corpus for children’s higher studies or marriage, foreign holiday, getting a house, for retirement etc. Setting a financial goal for retirement and starting early for reaching there will let you retire rich.
6. You settle down for steady income
It can be problematic to retire rich when you are not working on increasing your income and instead settle for a steady income. It would become difficult for you to keep up with the rising inflation if your income does not grow along with it. With this, you have to cut down on your savings continuously and will prevent you from reaching your goals. So you really need to work on developing your skills from time to time to get hikes in your income and thereby save more.
One can retire rich if he is able to manage his finances well. Adopting a disciplined approach in saving & investing will help you always to meet your financial goals. Investments should be done on the basis of the risk appetite of an individual. It requires monitoring from time to time, and also rebalancing it as required.
If you manage to handle these obstacles, then you can surely reach your goal to a rich retirement.