Retirement amounts to just under a quarter of your expected life, giving you 17 years of long morning lay ins and chilled afternoons making the most of life without work. So it is imperative you start to consider your future from the moment you start earning.
Saving for retirement is great, but even if you put by $10 per week for the next 40 years, you will only have around $20,000 to support you through later life. Plus you have the added pressure of children and the desire to ensure you leave a financial legacy, no matter how humble. In a recent survey it was shown that most families are using their homes to help with retirement so getting on the housing market as soon as possible is vital.
Renting is a great place to start as you can get to grips with monthly outgoings and the tie of having to meet payments each month. Spending a couple of years in a lease apartment is a great first step into buying a property, so get to grips with the responsibility and then get some good financial advice and look at your options.
We wrote a great piece on what it takes to become a property investor and how you can do it without having thousands of cash to spare, so take a read after you finish this article, here.
If you have siblings you may want to consider the option of a couple of properties. Housing is in high demand, especially within urban areas. So talking to your siblings and making one purchase for yourself then splitting another with your family could give you all a little nest egg which brings you a little extra earnings. There are some great new builds available like these Block 17 Apartments which offer city living and easy commuting. Plus if you live in the same block as your rental it means you can be on hand to keep an eye on your tenants.
The average mortgage is 25 years. This means the sooner you step onto the ladder the earlier you will become a homeowner. This gives you plenty of opportunity to upgrade your home or to consider renting your apartment yourself and buying another, larger family home. Don’t over stretch yourself but consider how you could build a portfolio of smaller properties to help support your larger, home for life.
You don’t have to be a real estate tycoon to prepare for this. Smart thinking and plenty of saving, support from your family and hard work will enable you to make small purchases and create a very humble portfolio. Meaning you will have either income from rental to support you through retirement or property to sell.
It is never too late to start working to improve the quality of your life after work but the sooner you get to grips with it, the better your life will be. Money worries are so stressful and at some point we all hit them. Just don’t let this be at the end of your life when you have the chance to, finally, enjoy a slower steadier lifestyle!
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