5 Expenses That Will Improve Your Retirement
Improving finances is among the top concerns for most people trying to reach a comfortable retirement. But money alone won't provide you with a successful retirement. There are many facets of living a fulfilled and content retirement, and money is just one component.
Having a singular focus on building wealth can get you into trouble in retirement. Even if you amass millions, it's important to take a more balanced approach to preparing for retirement. Spending on these things will lead to a better retirement, and are worth having a little less money in the bank.
Health should never be neglected to make a few more bucks. You can literally lose your life working in the American culture. Hectic and stressful hours and a long commute followed by generous portions of comfort food to tame the emotional stress of it all can slowly erode your productivity and health. It's important not to work so long and hard that you damage your health in the process and don't even make it to retirement. Taking steps to maintain your health is essential for a happy retirement.
Relationships are critical, even if they drain resources. Being well connected often helps you succeed in the corporate world, but we all know deep down that a few meaningful relationships with loved ones beats knowing everybody. But developing deep relationships with other people takes lots of time. This will take time away from wealth-building activities. Putting your family first sounds obvious, but how many people really prioritize their relationships when a must-do project comes up at work? Being there for one another can also mean spending a bit of money to help out and hang out. Be careful here, because you don't want to become the bank of everyone you know, but don't be so stingy that you start ignoring your family and friends.
Wasteful spending can be worth it. I always err on the side of saving more because the vast majority of people can't control their spending. But saving too much can be a problem too. As a natural saver, I know the anxiety writing a big check can cause. I try to remind myself that the future me is just as important as the present me, so saving and spending today are both important. If your retirement savings plan is on track, then spending every once in a while is OK.
Making an effort to help the poor will transform you. Volunteering your time or giving money to charity can become a low priority for those who are determined to increase their wealth. But giving can bring perspective, joy and a purpose to your life. Those who give frequently benefit just as much as the people who are on the receiving end. If you have never donated anything in your life, then I urge you to give it a shot.
Remember to take some calculated risks. Many people are hesitant to embrace the unknown, even if their instincts tell them it's the right path to follow. Think through each opportunity that comes your way, and make sure you won't be devastated financially if the outcome goes against you. But do take chances. It's important to take a few risks in life, because not doing so is a surefire way to have regrets later. Even if you fail, the experience is bound to be full of teachable moments. And if you can learn from the mistakes, then success is well within reach.
David Ning is the founder of MoneyNing.com.
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