Preparing for Retirement
What are the two best ways to prepare for retirement?
Hopefully you guessed saving as one way. And the other is to adjust your standard of living now.
Think about this … if you save 10% of your income and pay around 8% for Social Security and Medicare every year, you’ll already be used to living on only 80% of your income!
And when you retire, you won’t continue paying those taxes or saving as much, but you WILL be in the habit of living on less than you earn.
To maintain your standard of living, you may need a nest egg to draw from and other sources of income equal to what you are earning.
Add your expected income sources and subtract your expenses. If there’s a gap, make adjustments now so you’ll be prepared. Don’t forget that health care costs increase with age while entertainment costs decrease.
Only God knows our future, but He’s given us instructions including “A good man leaves an inheritance to his children’s children.” Intentional planning now will serve you well. Sacrifice for the future with humble dependence upon the Lord for clear direction.
Like the writer of Proverbs 30 says, “give me neither poverty nor riches; feed me with the food that is needful for me, lest I be full and deny you and say, “Who is the Lord? or lest I be poor and steal and profane the name of my God.”
So begin saving more and living on less now…you will be ready to retire when the time comes.
For more help saving for retirement and planning your legacy, download the Money Map. It’s a step-by-step guide that will help you meet financial goals and understand what the Bible says about money. Download it for free!