Crash Retirement Programme II

  • Change your budget: you need to have a zero based budget at this stage of your life. With a zero based budget, you start from absolutely essential expenses, then move to other less essentials until you arrive at zero. Sadly, many of us concentrate on less essential expenses while we burden ourselves with a lot of unnecessary financial burden such as extravagant burial ceremonies: wedding ceremonies: aso-ebi e.t.c. Cut all these expenses and plough the money into your retirement savings. You must change your habit at this stage of your life. Do not feel guilty when you say “No” to discretionary expenses.
  • Change your job if necessary: this may not sound right to a lot of people, but remember we’re talking about a crash retirement programme. You don’t have the luxury of young age. Better job for this purpose could be the one that gives you a higher pay: the one that gives you more free time to do some personal business or a job that provides you with a better pension. These will help in quickly building your retirement fund.
  • Go Private: while I don’t encourage you to utilize your present employer’s time for your private business, you must make a better use of all your free time. Think about starting a private business on the side to enhance your income. However, don’t cheat your employer. With a private business, you secure two sources of income for yourself. The good thing about this is that you can eventually retire into your private business and fight boredom on retirement.
  • Retire Late: assuming you’re not cut out for entrepreneurship, you may consider retiring later than the standard retirement age. The longer you stay, the bigger your retirement benefit is likely to be. However, this is not the best option and in any case, your employer is not likely to retain you till the old age of 70 – 75.
  • Mind your health: I can’t say this enough. You are not getting any younger. Mind what you eat and what you do at this stage. Medical expenses can be quite high for people in your category and it’s not advisable for this to erode your retirement savings. Take medical advice on time and remember prevention is better than cure.
  • Be Realistic: when making your projections and assumptions, be as realistic as possible. Create a realistic dream for yourself. Why, for instance, would you want to ride a hummer jeep at retirement when your retirement fund can only afford a Honda City? If you can, go ahead. That’s what retirement is all about – good life. But if you can’t, why build a castle in the air?


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