10 tips for becoming retirement savvy

Getting older is inevitable and retirement is always in the future, but do you ever see people living their retirement dreams and wonder ‘what did they do to get there?’.

Being retirement savvy doesn’t require a secret formula – putting money in retirement savings every month, year after year makes all the difference.

Keep spending in check and make saving a priority with the help of an investment professional.

But what does that look like in everyday life? Here is a look at how retirement-savvy people live.

1. Understand that income is the biggest wealth-building tool

Smart investors take advantage of their most effective and reliable way to build wealth: their income. No matter how large or how small their household income is, they give every rand a purpose.

2. Make a monthly budget and stick to it

Retirement-savvy people know how much they spend on groceries, eating out and new clothes. And if they run out of coffee money before payday, they drive past the coffee shop to avoid busting the budget because every rand counts. They know that small, everyday choices make the biggest difference in the long run.

3. Invest 15% of their household income

After paying off all their debt (except the bond) and saving three-to-six months of expenses, smart investors save 15% of their household income in retirement. In fact, almost half of millionaires (48%) said they saved 16% or more of their income each month.

4. Have a long-term vision for investing

Retirement-savvy folks know investing is a marathon, not a sprint. They don’t jump from one investment to another because of stock market ups and downs. That’s because they have a long-term vision when it comes to investing. They know mutual funds with a solid history of growth are a great investment choice to stick with for the long haul.

5. Live below your means

You won’t find retirement-savvy people spending more money than they make. According to The National Study of Millionaires, 94% of millionaires live on less than they make. They buy modest houses and pay cash for vehicles and vacations. This leaves enough money to stash away for retirement.

6. Keep their hands off savings

Retirement-minded people make sure they have a solid emergency fund in place to take care of unexpected expenses that life throws their way. That way, they can leave their retirement savings alone. Your investments need time to grow, and pulling from them too soon won’t do you any favors.

7. Stay away from get-rich-quick investments

People focused on funding their long-term retirement goals don’t waste time chasing get-rich-quick investments. They know better than to fall for investment trends with a lot of hype and very little proven results to show for it.

8. Have a plan, and update it when needed

People who are good with investing know where their money is going and how much it’s growing. They keep tabs on their investments by having annual check-ins with an investment professional.

9. Work with a spouse (if married)

Couples who are on the same page when it comes to money are more likely to win with investments. They work as a team and win as a team, deciding together on their money goals and how they’ll reach them. And a lot of couples aren’t just focused on getting ahead, they’re also fueled by a shared desire to be generous with their money too.

If you’re single or newly single, you’re not off the hook! Find an accountability partner like a close friend or trusted family member who will encourage you and keep you focused on reaching your financial goals. Don’t do this all alone. You need someone in your corner cheering you on!

10. Meet regularly with an investment professional

Smart investors know that a skilled professional is worth their weight in gold.

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