Let’s make retirement really, really, simple. Here’s a story. Jack and Jill worked hard for three decades. Then, they retired.
So what does that mean? For Jack and Jill, it meant, um, well… hrmmm… And therein lies the TRUTH about retirement. That is, too many of us don’t know what retirement means to US! We don’t know our TRUTH about retirement.
Why does this TRUTH matter? Consider the following. Who could get by saving LESS money (read, sacrificing less financially) during their working lives (yes, you read it correctly, saving LESS money):
1. The individual or couple who plans to garden, read, and pursue volunteer work… OR
2. The individual or couple who plans to work part time, travel, and collect fine wines.
What’s the answer? It depends. What does it depend on? Answer: LIFESTYLE! See, retirement is all about LIFESTYLE. And lifestyle revolves around who we are as people. Some of us find bliss in residing at the lake in a small cottage. Some of us enjoy a faster pace filled with BMW’s, travel, and fine wines!. Two different lifestyles. Two different TRUTHS about retirement! (one isn’t better than the other, they are simply different)
Why is this important?
Pay close attention here.
Retirement lifestyle directly affects how much, or little, money we need to save. A retirement lifestyle that values time reading, gardening, and volunteering, requires a different amount of money than a retirement lifestyle that includes snowbirding, travel, or a husband’s expensive car collecting hobby. Again, both are great lifestyles.
However, if you desire the FIRST retirement lifestyle, you may get by saving LESS and SPENDING MORE in your working years.. But, if you desire the SECOND retirement lifestyle, you will need to save MORE and SPEND LESS during your working years (i.e. spend less and save more). Make sense?
So, what does retirement mean to you? Write down three activities you would do right now, if you were retired. Then circle your favorite two activities. Finally, you can match a sacrifice (read savings) level to meet your vision. You now have a clearer picture of your retirement lifesytle, your retirement TRUTH.
Have a comment, go ahead and comment below. Tell me what your top two retirement activities are from this activity. I’ll personally respond. Do this right now!
