Many people start to do any activity without considering what is target or how to achieve the target. So they work hard day by day, without deep thinking about overall picture. At the end of the day they see no results or progress. This is because they have no short and long term plan how to achieve their targets (or they have no targets at all).
Of course plans can be changed as nothing is written into stone. Some unexpected items can come to your way, but we all have this and it’s up to us, how we will solve (fight with) these challenges. One way what I learn in Japan is to take a piece of paper and pencil and make time line and show main milestones or challenges in future. How much I have to save first year, how much second year…
When you have this it is time to check your current status of saving. Is my saving amount according to my long term plan? If not, do I know for what I spend the most?
If you have no idea how much to save I can give you my example. I have long term average 59% (I can save 59% of my salary) and I think even with this we have a good living standard.
As 10 Year For Retirement is work for 10 years it is highly important to be focused about short and long term plan. I am making monthly financial overview for my personal use already for 6 years. It means I check all my money at beginning of month and at the end and compare how much I saved. This value I compare with my long term plan. Every month I can see by this if I follow my saving plan and I can also see that I am coming closer to my target (financial retirement after 10 years).
I prepared modified version of my MONTHLY OVERVIEW SHEET so you can download this sheet here. Use it as you want, I will be glad if it helps you.
Never, never take money from your investing account. You should see more to future and don’t live from day to day or month to month.
Of course it is difficult as media and your friends and family will always show you new, amazing things. They will say “You have to buy this”, but you have to be strong and and stay focus about your target. I am not saying you should be only somehow surviving. I am saying that you should ask yourself if you really need all those “great” things you want to buy.
The more strict/hard you will be yourself now, the sooner you will achieve your 10 YEAR FOR RETIREMENT plan and the sooner you can buy those “great” things. There will be a lot of time to enjoy those things in future.
Example of attitude.
For example I am not saying that you should not travel, I believe that this is one of best experience for anybody to go abroad. But even travelling can be made with focus to lower cost. If you need cheap air plane tickets you should check www.azair.com, www.kiwi.com, www.skyscanner.com or www.amadeus.net. You can find amazing deals here with fragrance of cost.
Also you should check those well known sites in case of accommodation www.airbnb.com, www.hostel-world.com or www.booking.com. And if you have no time but still you want to save some money you should check www.expedia.com for combination of airplane tickets and accommodation.
I hope this article helped you. If yes please check my other articles as well.