An average person spends about a third of their lives growing up and reaching a state of independence. About another third working and accumulating assets and the final third using those assets to fund their retirement. The method of accumulating assets in your working life is an important factor, so here are three ways to supercharge your savings:
- Start young. The compounding effect of returns is a very powerful tool in the kitbag of any investor. The younger you start the greater the benefit.
- Track the Charges. Cheapest is not always best but you should take care what you are spending on your retirement and insist on knowing the charges and having them explained to you before you commit.
- Get some-one else to pay. This could be your employer matching contributions to a pension scheme, tax relief or a tenant paying the mortgage on your investment property. This is a great way to provide your retirement savings with an extra boost.
- Save first and then spend. This idea is attributed to Warren Buffett one of the most successful investors of all time and one of the world’s richest men. For a multi-Billionaire he lives very modestly saving first then spending.
- Avoid get rich quick schemes. I know they are attractive and a sure thing. The reality is they are usually very far from a sure thing and returns will probably not be anything like those promised. Becoming wealthy is a long road that requires commitment and hard work.
I hope the above was of interest and I look forward to any comments or questions you have.