There is no quick route to sound financial retirement planning. We all crave for an easy way to save for retirement, such as the famous ‘spirit’ in Aladdin’s lamp. The answer to that crave for a quick fix is short and to the point: “Start Saving!”
Millions of working people, globally, find it hard to save. You need to spend every dime you have to: pay bills, clear the cost for the children’s medical and school requirements; and have a little left for socializing and some recreational fun. So how can we ever save for retirement under such circumstances?
The key to savings is to exploit the fluctuations in your income to enhance your savings culture. When you start a new job, with a new salary, for example, set up a direct deposit of a small amount of money into your saving fund. The money saved is deducted automatically before you get your paycheck. We all think that you live a lifestyle commensurate with what you earn. So, if you earn $50 or $100, (equivalent to Ughs200, 000 or Ugsh400, 000), you must adjust your lifestyle accordingly; and re-adjust your retirement savings target. The same principle can apply to payments automatically deducted from your account. Some or all these payments can be deposited directly by your bank into your retirement income account.
Savings for retirement is not only advisable for those earning more pay: small income earners can also start saving small instalments. Money will eventually build up on their accounts.
This is equally applicable to those who do odd jobs like selling firewood, vending local crafts in markets and frying cassava chips along the streets. All these categories of small income earners can save for retirement too.