Want to live debt-free in retirement? Here’s the formula
To Money Lady readers,
This time I wanted to ask you a question.
Have you ever noticed how we encourage, support and tell others to “go for it,” yet we let fear hold us back and never take the advice we so freely give? Why is it that we often don’t apply the same encouragement to our situations? Is it that we just have trouble “practising what we preach?”
By the time you reach your mid-50s, you have probably suffered greatly with personal, financial or career challenges. Have you ever noticed how you can see the problems, or more importantly the solutions, for others due to your life experiences but often cannot recognize it for yourself?
Perhaps it is our own personal or perceived insecurities about how to address difficult decisions that sees many Canadians selling themselves short, especially when it comes to saving for retirement.
Yes, I know that life is expensive and there are a lot of demands on your wallet. However, to become debtfree and wealthy, the solution is very simple: set a goal,
make a plan, work your plan, reassess your outcome and have the courage to make the necessary changes to achieve your goal. Consistent determination is the only way people have improved their lives and become financially successful.
I meet people all the time who have overcome hardships, started a business (maybe failed more than once) and then triumphed. I have helped clients who have lost everything after a divorce or career failure and seen
their unwavering desire to get back on top. I have clients in their 70s who have saved too much money to spend in retirement, who never made a large income during their working careers but simply saved consistently and lived below their means.
In contrast, I also have tried to help many people who look like they have it all, with fancy cars, expensive homes and clothing, yet underneath it all they are in overwhelming debt and facing a negative net-worth situation.
Money is emotional. To save for retirement, you can either make excuses why not to or you can find a way to make life changes and sacrifices to ensure your independence and security as you age.
Remember that true success is not measured by material things but instead should be defined by what you have overcome in your life. It is about how many times you got back up after you’ve been knocked down and never stopped trying to accomplish the things that people said
you could never do.
Take back your inner power and control. Refuse to settle for less, and make sure you retire debt-free and wealthy.
Good luck and best wishes, Money Lady
Christine Ibbotson is the author of How to Retire Debt-Free & Wealthy and Don’t Panic – How to Manage your Finances and Financial Anxieties During and After the Coronavirus. If you have a money question, visit askthemoneylady.ca.