Four tips that will help you retire

Wondering if you’ll ever retire? Here are four tips to help you reach financial independence:

1. Spend less than you earn. Having a balanced budget may seem like basic financial common sense, but according to a recent study, nearly half of all Canadians (47 per cent) are living paycheque to paycheque.

2. Pay yourself first. If you want to retire early, make payments into your savings accounts and retirement funds before paying other expenses, including rent, utility bills and groceries. Get into the habit of automatically contributing to your savings each month. 3. Buy assets that generate income. Invest in assets that tend to appreciate over time — stocks, real estate, artwork and antiques — rather than electronic products that rapidly depreciate.

4. Keep investing. Having a diverse portfolio of long-term investments (stocks, bonds, REITs, etc.) is an important strategy for reaching financial independence. Invest during bad years as well as good years: if you give up during a lull, chances are you’ll miss out on the returns during the recovery.

As you plan for your retirement, keep in mind that it can be helpful to have an adviser look over your finances. He or she can suggest tailor-made strategies for saving, investing and budgeting.