Having a million dollars by retirement is something that many people dream about but do not believe it is possible. This is a shame, because with a little planning and hard work you can retire a millionaire. Simply follow these steps and you will be able to retire with a million dollars or more in your bank account.
Choose When to Retire
Go ahead and decide when you would like to retire. It really does not matter whether you would like to retire in ten years or thirty years, with the right amount of work anyone can retire a millionaire. So write down the date you would like to retire and keep a hold of it. This date is what is going to keep you going through all of your hard work.
Calculate Your Monthly Savings
Find a good retirement calculator online. There are plenty of these free calculators available, so choose the one that you like best. Now all you need to do is enter how long you have until you retire, how much you believe you will get back from your investments and enter the amount you would like to save by retirement as one million dollars. Once you enter this information, you should be able to find out how much money you need to save every month to reach your goal of retiring a millionaire.
Now that you know how much you need to save for retirement, you will probably need to reduce your monthly expenses to meet that savings goal. Look at your monthly budget and see where you can cut back. Do you really need to get your nails done every week? Could you rent a $1 movie instead of going to the movie theater? Would you mind eating at home more often if it meant retiring a millionaire? As yourself these types of questions about your current budget, and see where you can find the money to save for your future.
Once you have the money to invest every month, make sure you take the time to invest it smartly. Make sure you diversify your investments so that if one investment does not pan out, you will not loose your life savings. If need be, find a financial planner to help you invest your money properly. A good financial planner will make their fee back ten times over, so do not overlook them as a financial tool to get you to your goal.
Pay Off Debt
If you can, find extra money in your budget to pay off your debt by the time you retire. The truth is that if you retire with a million dollars but you have $300,000 in debt, you are not really a millionaire at all. Debt will quickly chip away at your money’s buying power, so get rid of your liabilities so your one million dollars will stretch even further. So work extra if you have to in order to get rid of the debt that will keep you from your retirement dream.
Above all, never quit following these steps until you are a millionaire. You have to stay consistent in your saving and investing if you want to reach your goal. So do anything you can to keep yourself motivated and working hard. Remember, the sacrifices you make now will pay off ten fold down the road. So never give up if you really want to retire a millionaire. Keep following these steps and you will be able to realize your financial dream.