I know it’s been a while since I’ve posted anything. Even though that’s the case, I am still brushing and updating on my financial knowledge whenever possible.
Today while reading some articles, I came across this statement – Starting work? Time to think of retirement. Retirement planning isn’t something that can be done overnight. And it immediately struck a cord with me for I hold exactly the same view.
We (especially the older generation) used to have a mindset of being loyal to our jobs and if we stick to our jobs and do it well, we are assured an income, something we called ‘iron rice bowl’. But times have changed. Employers nowadays do not guarantee any job security, therefore there is no more “guaranteed income”. Financial news bombed us every once in a while with increasing frequency because of the improvements in technology.Thereby, increasing the violatility of the financial markets to us. Financial security no longer holds the same meaning as before. I’m not implying that we shouldn’t be loyal but what I’m trying to say is, we are now very much responsible for our own financial destiny than before. And looking for alternative sources of income besides from active working has became more commonplace now.
This also reminded me of a conversation I had with a colleague not long ago, about career planning, job changes and of course, money concerns. While this colleague isn’t exactly young and do not necessarily need the working income for support, there are still quite a number of years left towards our official retirement age.
And so my advice was, start doing something now.
Save and spend on something that would generate a passive income in years to come.
I’d give this advice to anybody, including myself. Like I’ve mentioned, my colleague isn’t exactly young but it’s not an excuse for not starting, preparing and planning now, for there is still quite a number of years before we grow really too old to work. While the disadvantage to this group of people is that time lost cannot be reclaimed (especially if they haven’t done anything financially), the good thing is starting from now, every bit else can matter only if we do something. And for most people in this group, there is probably already a sizable amount stored up ready for something.
For the young ones who may just be starting to work, while we may be starting out with nothing much in our pockets, the good thing is time is on our side. Start today and the compounding effect will help in the long run. And remember to also invest in our own financial knowledge.
Regardless of your age, where you are at currently, if you have not been doing anything, for a start, just save something.
Even if your financial goal is something huge like buying a house for investment and to get a rental yield.
For starters, the amount you set doesn’t matter. Your age, where you are at currently also doesn’t matter as I’ve explained above. Set an amount you are comfortable with, it could be as easy as $1. The idea is to build the correct habit, the momentum and the discipline when it comes to your money. For if you haven’t been doing anything, chances are, you will carry on not to do something unless you have the motivation and small enough goals and progressive successes to carry on motivating you.
But there is a need to do periodic reviews so that when you are comfortable with saving that $1 regularly, it’s time to up that amount to the next comfortable stage. And if you are just starting with that dollar, the faster you get comfortable to go to the next increased amount, the better. And if possible, start planning the actual financial planning to really save up for the house (or goal).
Do not be scared off by the hugeness of your goal, even if it’s really something huge like buying a house for a start. Break it down into smaller goals, set a timeline. Do not let your age, your current financial status scare you into inaction. Just start something, no matter how small it seems. And remember to celebrate small wins. In the long run, you will see that it (time) will help to pay off and lighten some of the load. And review your financial health regularly. Also, Invest in your own financial knowledge, network and look out for opportunities that can add to your financial options and wealth.
