11 Mindset Rules to Live the Retirement of Your Dreams:
When you read something related to retirement, there’s so much talk about rates of return, inflation, savings thresholds, tax mitigation, budgeting, asset allocations, and any other relatively dry and, why not, stressful topics. But most people care about their finances and planning for retirement because they really have a dream for their future.
We think that it’s so important to remember that financial strategies are just a means to an end. You have to make time to plan the life that you want. What is that you need? What are your desires when it comes to retirement?
Keeping the focus of your planning on those dreams will produce better outcomes. Today, we decided to focus on that, so here are 11 guidelines for using your dreams and building a much-needed financial plan for the life you wish for:
Focus on your dreams, not your savings balances
When you’re building your retirement plan, it’s way more meaningful and effective to build your plan based on what you really want to do, and also experience in the future rather than simply on an arbitrary savings balance.
As a matter of fact, don’t start with what you think you could save. Start with what your dreams are for the future. All those dreams could inspire you to do things way differently. Start now. It’s never too late for that.
Build a strong budget for the future
You’ve probably heard this before, but figuring out how much you actually need to spend is probably the most important aspect of retirement planning. Your future spending will easily determine how much you need in terms of your retirement income and savings.
The more in-depth you get, the better. However, the message isn’t getting through to everyone. In fact, according to a Merrill Edge report, plenty of Americans have zero clues as to how much money they should have saved. Budgeting for your dream life doesn’t have to be that difficult.
Celebrate milestones, not birthdays
Are birthdays the memories you really want to make? Do you want the entire focus of retirement to revolve around your age? You can start celebrating other things than just another year passing by. In fact, there are many things to be grateful for; you just need to pay attention. For instance, do you want to remember 2024 as the year you turned 70, or the year you and your family visited that super cool spot in upstate New York?
Consider purpose as you plan your dreams
The research shows that having a certain sense of purpose and meaning in your life is much better for your emotional and physical stability than the pursuit of happiness. As you dream about your future and start setting realistic goals, you might want to consider how the purpose fits into your pursuits.
Are there any hobbies you always wished to start on? Whether we’re talking about golfing or learning how to do the cobra pose in yoga, there’s something you can start tomorrow that might bring you a ton of joy in the future. You just have to pay attention to your needs and desires and realize that now there’s no 9 to 5 job you can blame. You can finally do what you always wanted.
Be flexible about how you define your dreams
Of course, plenty of people probably dream of spending their days in the lap of luxury on a beach somewhere in the South Pacific. However, this isn’t going to be affordable for everyone out there. As a matter of fact, plenty of us have to work well into our 60s and 70s.
In some instances, you might be able to fit your dreams into that reality. There’s truly a lot of satisfaction that can come from working. Of course, what kind of work are we talking about matters a great deal. Jobs often provide meaning, purpose, and structure to your life. As mentioned above, those are pretty nice dreams.
Dreams don’t have to cost too much
No one says that there’s something bad with budgeting for travel, the things that make you happy in life don’t necessarily need to have a price on them. Not to sound too corny, but you might discover that there’s beauty in lying in bed at 6 am in the morning and listening to the rain.
You can take the time to listen to it. There’s no rush. No one is rushing you to do anything or be anywhere. Isn’t it truly beautiful? What about spending time with your wife, husband, or grandchildren? Those are all priceless things that won’t require you to stretch your budget. Just to be present and enjoy retirement.
Beware of lifestyle creep
Lifestyle creep usually occurs when your income rises, and former luxuries become necessities. That’s also when you get used to spending more. It’s worth mentioning that people can rapidly get used to whatever level they are in.
Considering all that, the number you have in mind when it comes to retirement could potentially increase as time goes by. You know what they say. The sky is the limit. If you want to prevent tapping into the lifestyle creep, it’s super important to assess what really drives your happiness.
Get to what is essential in your life, and understand what is “enough.”. Because at the end of the day, it’s nothing but a dream.
Understand that many people simply save too much
I know we’re always talking about not saving enough, but what is there to do? Greedy human nature is, after all, greedy. Just kidding. But yes, saving way too much is way more common than you might think. Truth be told, it’s not as common as not saving enough, but it can happen.
Oversaving sometimes stems from wanting to be completely prepared for any possible future scenarios and a fear of running out of money. It could also be an ingrained habit. It can be difficult to transition from a lifelong practice of saving all the way to spending on yourself and your dreams.
A good thing you could try is learning more about why some people save too much and also taking advice from others who have oversaved.
Try to change your perspective when it comes to spending
Probably some of the wealthiest people among us worry a lot about spending, especially on things that might not be necessarily deemed “dreams.”. A couple of people would even recommend putting your spending into perspective. Have you ever noticed how we reflexively resist spending money that is around the equivalent of a 1-hour fluctuation in the overall value of our portfolio?
Know what savings balance enables you to reach that carefree state
Probably one of the most frequently mentioned retirement goals is having just enough money to feel peace of mind and to live as carefree as possible. If you really want to know how much you need for retirement, the secret is to sit and enjoy life without having to worry about money and spending. That can be just as good as sitting on the deck and enjoying life.
Plan for the future but live in the moment
Planning for your dreams is very important. You won’t achieve your goals without a plan. But you also need to find happiness in the present, and if you’re out of ideas, we highly suggest you read this article, too: 10 Longevity Secrets No One Tells You About