“Don’t wait. The time will never be just right.” – Napoleon Hill
It is far too often that I meet with people who suggest that they just aren’t yet earning enough to be saving for their retirement, or their child’s education, or whatever else might be important to them. In 99% of cases, this is absolute nonsense.
We often feel that it is difficult to save because no matter how high our disposable incomes become, without a strategic financial plan in place, we will always find a way to spend it. Holidays, boats, cars, wining, dining, shopping…the list goes on.
Below I’ve outlined some common expenses that you can eradicate and I’ve also highlighted how much of a difference this could make to your retirement sum in future.
For these examples, we’ll assume that James is currently 40 years old and plans to retire at age 65, giving him 25 years to save for his retirement.
☑ Coffee 1 less coffee each week $16,580
☑ Groceries Reduce shopping bill by $50 per week $207,275
☑ Drinks 1 less night out each week $248,730
☑ Lunch Bring lunch from home each day $291,426
☑ Travel 1 less holiday each year $365,530
☑ Dinner 1 less dinner out each week $829,102
With the power of compound interest, you can see that the savings quickly add up to substantial figures over time.
How much could you really be saving towards achieving your financial goals?
To your financial success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Book a complimentary consultation here.