The choices you make right now, in business and in life, affect how soon and how well you retire. The average American is underprepared for retirement. So behind in fact, that catching up by saving better will not change the future. The conventional, “Save! Save! Save” will only have you scraping for additional funds midway through your retirement. That method simply does not work...earning less than 1 percent on your money sitting in the bank is all around a bad idea. So, what is a better idea? Here are two things you can do that will help you retire faster.
Despite the fact that America is one of the wealthiest countries, most citizens are barely getting by. One of the main reasons this has happened is because people allow themselves to be consumers only; spending more than they earn. With the online generation and having easy and full access to purchasing with one-click (Thank you Amazon), spending is not a thought out process, but an impulsive decision.
You can change this dynamic by thinking about every dollar you spend and borrow. Ask yourself if buying this thing, item, device, accessory, etc. is helping you get closer to your goals or moving you farther away. Make a decision to spend less on depreciating items and more on investing in assets. Take time to “spend smarter” by thinking through where you drop your cash.
When you invest in income-producing assets first, you can change your unfortunate situation when it comes to your retirement. There’s the chance to earn while you sleep through passive income, multiply your income through investments, and spend more time with your family because you aren’t trading your time for money. I was able to begin my “investing” at a young age. This was how I created the opportunity to get into the market of flipping houses and eventually, into the rental property market.
It makes a difference as to what we invest in. Stocks have skyrocketed, but many believe this will be short-lived. My preference is to throw my money into real estate, and I do this for a variety of reasons. In real estate, you still earn passive income while hedging inflation rates. Also, property is not likely to be disrupted by technology. It’s just a solid choice. I get it that not everyone has the cash or credit to scoop up a lot of rental properties, but if that’s the case, there are people to partner up with and start earning. Think about the other strengths that you bring to the partnership besides cash or capital and use those to create a successful investing team and a retirement you can count on.