Unless you\u2019re guaranteed to come upon a great deal of wealth in the future, before you retire, it\u2019s essential that you save for retirement. <\/p>\n\n\n\n
When you do, you not only set yourself up for an enjoyable life in your older years, you also give yourself peace of mind.<\/p>\n\n\n\n
Anxiety about whether you\u2019ll have enough money to retire can be debilitating. That\u2019s the harsh, but true, reality. Knowing you have enough money to retire is the only way to quell that anxiety. Instead of dreading the future, you\u2019ll look forward to it.<\/p>\n\n\n\n
Depressions happen, the financial forecast is never certain, and inflation is unstoppable<\/u><\/a>. But there are ways to save your money to maximize your chances of living a financially stable life after retirement. Here are 2.<\/p>\n\n\n\n It helps to know how much money you\u2019ll need to save for retirement, so you need to take a realistic look at your finances and how much your retirement will cost.<\/p>\n\n\n\n Taking a realistic look at your finances means figuring out how much money you\u2019ll actually be able to save without making major sacrifices that will lower the quality of your life. <\/p>\n\n\n\n This includes taking into consideration possible emergencies. You\u2019ll need to figure out, for instance, how much you\u2019ll be able to save if you get sick and cannot work for a while, if you lose your job, if your spouse loses their job, or if any other financial crisis befalls you.<\/p>\n\n\n\n Figuring out how much your retirement will cost means figuring out roughly how many years you hope to enjoy after retiring as well as where you wish to retire. <\/p>\n\n\n\n For instance, Canadians hoping to spend their life after retirement at retirement communities that offer independent senior living in Ottawa<\/u><\/a> will need to save differently than people who plan to live out their older years in the homes of their relatives.<\/p>\n\n\n\n Another part of determining how much money your retirement will cost is calculating how much you\u2019ll spend each year. <\/p>\n\n\n\n People tend to believe they\u2019ll spend around 70% to 80% of what they spend now, but to have enough savings for retirement, it\u2019s better to assume you\u2019ll spend about the same as you do now.<\/p>\n\n\n\n You\u2019ll also need to consider inflation. The cost of living increases every year, including the cost of healthcare, and people are living longer and longer. <\/p>\n\n\n\n Saving up for a world that\u2019s more expensive than today\u2019s is key to a good life after retirement.<\/p>\n\n\n\n When you put your money away in a traditional savings account, it may not keep pace with inflation, meaning the value of your money in the future will be less than the value of your money now. <\/p>\n\n\n\n Another way to save money for retirement is to build a promising financial portfolio<\/u><\/a>. If you invest wisely, your wealth will outpace inflation, meaning the value of your money in the future will exceed the value of your money now. Ideally, you\u2019ll want to put some of your money into a traditional savings account and invest some of your money in assets.<\/p>\n\n\n\n Investing isn\u2019t a science, however, and it\u2019s impossible to invest without taking risks. Some assets tend to be less risky than others, such as safe-haven assets, but investing in any asset is risky. <\/p>\n\n\n\n1. Determine How Much You Should Save<\/h2>\n\n\n\n
2. Build a Financial Portfolio<\/h2>\n\n\n\n