There is a constant battle we all face. Current self v future self.
Should I eat that doughnut?
Should I have a lie in rather than go to the gym in the morning?
Shall I make this purchase on my credit card now or should I save up to purchase it later?
Should I save more now so I can have a better lifestyle in future/retirement, rather than have it all now?
Those of us of a certain age will remember a long running theme from the Mars bar adverts. “A Mars a day helps you work, rest and play”.
This concept is worth exploring when considering your retirement goals.
Right now, your day is probably split in the region of:
8 hours a day work
8 hours a day sleep
8 hours a day play
This seems a good balance, but have you ever thought about when you spend your money?
Most of our spending is during “play”.
I know I certainly spend more money at the weekend than I do during the week when I’m working.
This is especially true when you consider holidays, days out, socialising. So, the 8 hours a day we work pays for the 8 hours we don’t.
Though not impossible it is pretty hard to spend when you’re sleeping so I’ll ignore this.
However, have you ever thought what does this picture look like at retirement?
You (hopefully) won’t be working 8 hours a day. However, you will double your time for play.
The problem is the income from working is no longer there!
Yet you have twice the amount of time to “play”, which is when you do most of your spending.
No income, but twice the spending time!
This is before we consider those “trips of a lifetime” and all the other things on your bucket list you wish to do whilst you still can.
Also, do you want to retire early? I never hear people say they want to work longer!
This is the problem with retirement planning. You have a lot of living your current self wants you to do now. However, your future self needs a little consideration to ensure when you get there you’re happy with the options and decisions you make today.
It is a balancing act, as my previous blogs have alluded to.
However, the good news is if you save early, often and with a long term view you will be able to save enough so that you can fully enjoy that extended period of “play”.
It’s just a matter of your current self, listening to the voice of your future self. And just as a “Mars a day help you work, rest and play), your future financial plans need to be balanced between the now and the future and making a conscious effort to start planning now.
If you would value the opportunity to avail of a free initial review of your future plans, feel free to email me or call me on 07717 292417 to discuss further.