Financial planning for a better retirement

Financial independence in later life does not just come from how much is earned but also from good money management. It is never too early or late to start a good retirement plan.

There is a big difference between “making a good living” and “enjoying a good life.” Making a good living refers to a person’s earning capacity. Enjoying a good life on the other hand is how the money is spent.

Making conscious and deliberate choices about how the money is spent is the basis for a financially independent life in retirement. The four key elements of sensible money management are:

1. Giving priority to savings. “Pay yourself first” is a common edict. Set aside a sum of money as savings to be used for wealth creation.

2. Living within one’s means. That is buying only what one can easily afford.

3. Investing wisely. Money in a bank account earning minimum interest will not help to create wealth. It has to be invested in assets that grow in value over time.

4. Using some of the money to make a difference. Being grateful for what one has and showing that gratitude by helping those who are less fortunate.

Bearing in mind that for a better life it is necessary to be financially independent in retirement it is never too late to put into place a saving and wealth creation plan to achieve one’s financial goals.