Many of the brightest and hardest-working marketing and advertising people in the country are obsessed with getting you to spend money and, if necessary, to go into debt to do so. Absolutely all the media that reach you every day are designed to get you to spend money. In order to save money in this environment, you will need determination to withstand the constant pressures to spend now.
Successful individuals have a strong personal vision of what they want and why they want it. That vision gives them the strength to stick to their strategies even when doing so is uncomfortable. It gives them the determination to persist when they are discouraged.
1. Increase your contributions to the maximum that you can manage.
2. Invest at the start of each year instead of taking a little bit out of each paycheck. By investing early, you
wíll put your money to work sooner for your benefit.
3. Put more of your investment fund in equities and less in money-market funds.
4. Research indicates that over long periods of time, small-company stocks outperform large-company stocks. In the equity part of your portfolio, shift some of your money into funds that invest in small companies. Do not put your entire equity portfolio in small-company stocks.
5. Rebalance your portfolio once a year. Your asset allocation plan calls for a certain percentage to be invested in each of several kinds of assets. Rebalancing restores your asset balance and allows for the possibility that last year ís losers may be this year ís gainers.
6. Without compromising proper asset allocation use the funds in your plan that have the lowest operating expenses. Choose funds with low turnover in their portfolios.
7. Do not borrow or make early withdrawals from your super unless that is the only way to respond to a life-threatening emergency.
8. Here ís the most important thing you can do to maximize your super. Keep your contributions automatically payroll deducted, and make them no matter what.
Remember, to be successful, first, imagine your early retirement; the Caribbean condo, the yacht, the new Lexus. Luxury and pleasure as far as your eyes can see. Create a strong vision, and then do not let go. The power of a clear, strong vision applies to more than just your retirement savings. Let your vision shape your life, instead of the other way around, and all of the time in the world can be yours. You won’t be spending your Golden Years working at the Golden Arches.