Radcliffe

Keri-Leigh Radcliffe, Contributor

A prevalent concern in our society today regarding saving and investing is the ability to meet financial goals with the intent of retiring comfortably, given a tight budget. The common advice to those entering the world of work for the first time is to start early, as this will enhance and develop a habit which tends to continue throughout an individual's working life. However, in many cases, theory does not always prevail as many persons get sidetracked for different reasons and, as such, become late starters. Nonetheless, it is never too late.

In preparation for investing and planning for retirement, a maxim that must be followed by all is "every mickle makes a muckle", meaning, committing to saving a little at a time, will culminate in lump sum over time. But this concept requires dedication, commitment and willpower. Unfortunately, these qualities may come easier to some than others; therefore, in some cases certain techniques can be adopted for one to be successful.

There is a popular misconception that you should 'treat' yourself to something special every month. This belief gives rise to my next point which encourages you to separate your wants from your needs in an effort to attain financial freedom and hence, retire comfortably. Money spent unnecessarily could have been placed in a retirement plan which would be better for you in the long run. Treating oneself is a good thing as we all like to reward ourselves after a hard month; however, the frequency with which it is done should be kept at a minimum.

Recurrent expenses

Recurrent expensescan be categorised into two groups - uncontrollable and controllable expenses. Uncontrollable expenses are fixed regardless of how often the particular service is utilised. A typical example includes a cable bill or a maintenance payment. Controllable expenses, on the other hand, vary and include the telephone, water and electric bill. These are the expenses that we all need to monitor because our usage determines the amount we pay.

If you find it difficult to save, you may want to adopt the technique of considering savings as a tax. It should be considered compulsory and forgotten about until you are close to achieving your goal of retiring comfortably.