5 habits to start in your 20s if you want to retire by 40

5 habits to start in your 20s if you want to retire by 40

Retirement is a word that many people do not often want to hear. This is because once you retire your monthly income from work also ceases.

However, there are some decisions that could keep an individual happy even when he or she is in retirement.

As a young man or woman there are certain habits you need to cultivate and, if properly followed, you could even retire at 40 and still live an enjoyable life.

5 habits to start in your 20s if you want to retire by 40

5 habits to start in your 20s if you want to retire by 40. Source: Google images

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Below are five habits you need to consider in your twenties if you want to have a stable life by 40.

1. Set specific retirement goals

Retirement comes with lots of needs that must be met and so if you fail to set specific retirement goals, then it could go against you in the end.

Therefore, there is the need to have a budget range which you would spend in each month during your retirement period.

In this case, adopting the “four-percent rule” may be the best option since it regulates how much you spend monthly during your retirement.

2. Save majority of your income

Perhaps, the most important thing one should do before retiring is saving. Attaining financial freedom in your future life requires that you cultivate the habit of saving.

You can save between 25 and 40 per cent of you monthly income during the youthful days in anticipation of retirement. However, it is best if you could make the effort to save 50% of your income.

Such financial discipline allows you to have enough to spend even in your days of retirement.

3. Check your expenses

Another habit that is very critical in creating an enjoyable retirement life is the individual’s ability to track his or her expenses.

There is the need to know how much goes into your account each month and how much goes out as well.

Once you know this, you are well abreast with your income status and that should guide you on how to control your spending if you wish to keep your account stable in retirement.

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4. Maximize your income

Life as a retiree can as well be made easy if the individual makes the effort to maximize his or her income before reaching the retirement ladder.

There is the need to not only save, but also take measures to invest your money in any available way for a better future.

You can also choose to establish a business which would bring you income even when you are not working in your retirement period.

5. Pay yourself

After all the savings, account management and investments, the final part of financial management is to know how to pay yourself.

Paying yourself simply means knowing exactly how much you have and how much you take out every month and making the effort to stick by it.

If you’ve planned to take GHc500 every month, make sure you don’t deviate from it no matter what. That way you are assured if keeping your accounts disciplined.

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