In the sea of financial planning wisdom, there are too few messages about the importance of mindset. Gone are the days when simply saving money was enough to get you to retirement. With pensions practically a thing of the past, it takes more than just a big piggy bank to afford retirement.
Saving strategies aside, changing your mindset from that of a consumer to thinking like an investor, or even an entrepreneur through a side hustle can give you the security you’ll need to ensure a comfortable retirement.
Many people believe that investing wisely is the key to taking your retirement planning into the 21st century, but is it really enough? Smart financial advisors recommend multiple income streams to ensure you can retire comfortably. Even with a healthy retirement savings, it is wise to look for ways to diversify your income sources.
Side Hustle
Enter: the side hustle. Your side hustle (i.e. a second job, side business, or income-generating investment) boosts your income while minimizing the risk that you will run out of money down the road. Your salary is not guaranteed, but with a side hustle (or a few), you will not put your retirement in jeopardy if you lose your job or change jobs.
Just Saving May Not Be Enough
If an advisor focuses just on the certain amount you need to save by age 55 to retire, they might not have your best interests in mind. In reality, there is no magic number. No one can predict how much you will need or even tell you where you need to keep your money. That is why it is so important not to limit your retirement planning to simple money saving techniques.
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