What Will You Do With Your Retirement Money?

You will find many advice on the Internet to save and invest money for the long term. Here, the keyword used is compounding. You are told that it’s the 8th wonder of the world and you should stay invested for the long term.

And after religiously investing for 40 years, you will have unfathomably huge loads of cash, and you can spend on anything you like.

And all of this is true. But what if the things you do want to spend on are something you can’t do in old age or, worse, you die?

What then? What’s the use of retirement money when you can’t enjoy it? So what’s the right approach? Let’s see.

Spend And Save

You live your life today, and also you need to save for rainy days and retirement. So your transaction with money should include both elements.

For example, if you are earning INR 1 lakh per month and, let’s say, your essentials are INR 50 thousand, then save the INR 25 thousand and spend the rest on your dreams and desires.

This way, you are actively investing and living your life. The goal of life is to live in all your phases of life and not some accumulation of money for namesake.

Rule Of Postpone

Sure, you can plan a dream vacation, like going to Bali and save up for it. Or something bigger like a trip around the world for 1 year - for that,t you need lots of money. And you have little option other than saving for some big day event.

But if there is something you want to do that can be done at a young age, then do it now. For example, if you intend to run and hike mountains, then it’s something better done at a young age - for such trips, be cheap and hustle to get it done sooner by compromising on luxury.

This way, you are not postponing something which, when postponed, can’t be done.

Everyone’s Retirement Is Different

So, if you imagine your retirement at a meditation booth just sailing through, then you don’t need loads of money for that. Or if you imagine retirement as a community service thing, then too, you don’t need that amount of money.

Depending upon your clarity, you can tweak your investing and start living now. Else, if you follow the financial gurus, you will end up sacrificing your life.

Each one of us has a different life, and it’s okay to want to do different things out of it.

Your Retirement Money Is Yours

This means you decide on it and the pace at which you want to do it. The balance is important. If you have INR 1 lakhs, then you can either invest it for 40 years to get INR 50 or 60 lakhs, or you can spend it today on an experience which you will remember for a lifetime.

Or maybe you can do both - 50 - 50.

You do you. You decide. What’s your retirement plan, and what are you going to do with that money?