With the new iPhone 6 just launched in UAE many people will be rushing out to spend AED5,000 or more on this new gadget. Ask those same people what they have set aside of their future and many will say nothing.
It is a common criticism of the modern era that people want everything now and are rarely prepared to wait for the things they want or need. For example, a large number of people who will be first in line for the iPhone 6 will already have an iPhone 5 which is only a year old and they will have rushed to get that one too paying over the odds in the local market. Apple shareholders will be delighted that these people are so quick to part with their money for the latest iteration of the iPhone.
So, am I tipping Apple shares? Not on this blog but if you want to know my thoughts on the stock, contact me. The point I am trying to impart is something that we all know – the latest gadget or bauble is only a fleeting thing. Setting aside money for your future is vital as if you do not, it will not be a matter of being unable to afford the pretty things in life. Essentials like food and warmth may be higher on your priority list.
How much should you set aside? This depends on many things. To start with: what does retirement mean to you? Stopping work completely? Being able to change careers to something that you want to do, rather than need to do for the money? When will you do this? What income will you require? What level of risk are you prepared to take?
No one should be spending all of the money they earn every month. If you are not able to save a minimum of 10% of your income every month you need to rethink your expenses. For as a wise man once said, it is not your income level that determines your wealth but your spending habits.
if you have any questions or comments please let me know.