Money provides a sense of security for the future, and we all strive to maintain its financial stability and not be exposed to any risks. In order to enjoy comfort and stability in adulthood, you must work to secure your future financially while you are still young. In order to fulfill this wish, you must immediately start planning for your future.

Once you do some simple practices in planning your future lifestyle and managing your finances, you can look to the future better.

In a report published by the American website "Kiplinger", writer David Roddick says that most people do not plan well for their financial future, but it quickly becomes a reality in the last years before leaving a job.

According to the author, ensuring a secure financial future requires taking some important steps at least 10 years before leaving work, the most important of which are the following:

Imagine your life after retirement

It's important to imagine what your life will look like and what you would love to do after retirement, before you start preparing for that stage and identifying the necessary savings.

To this end, the following questions should be answered:

  • When do you want to retire?
  • And where will you retire?
  • And what do you intend to do?
  • Certainly, this includes lifestyle changes, travel and new hobbies.

Estimating the retirement budget

This estimate means that you estimate how much savings are needed to spend after retirement, and there are some rules to estimate this number, such as that your savings are 12 times your monthly salary, or that you have enough money to spend 80% of your annual income before retirement.

According to Principal Financial Group expert Sri Reddy, these fast ways to estimate retirement savings do not take into account different circumstances from person to person, so it is preferable to set the budget according to different areas of spending, such as housing, food, travel and insurance.

Reddy believes that the COVID-19 pandemic has given employees who have moved to work from home an opportunity to try a similar version of the retirement budget, where additional expenses, such as eating out, buying new clothes, and transportation costs, have stopped, but with the need to estimate expenses for travel and other recreational activities, which have been temporarily stopped by the pandemic, Reddy suggests considering part-time work after retirement, to generate additional income from an activity she enjoys.

Avoid big changes

One of the most important keys to a successful retirement lies in avoiding big changes, such as changing the house, car or lifestyle in general, and these changes will put a great strain on the retirement plan, so think carefully before planning any major change in your life during this stage.


In another report published by Business insider in its Spanish version, writer Hector Chamizo said that the better a young person controls his personal money and maintains savings, the more facilities that will be available to him in the future, so it is important not to spend more than your salary or to maintain a certain control over spending, which you can do through multiple mobile applications, and the writer identified some steps, the most important of which are the following:

Beware of impulsiveness and do not anticipate events

Although it's important not to sacrifice our short-term financial security for retirement plans, Douglas Bonbarth, president of financial planning firm Bone Fide Wealth, commented in a report that young people should first get the right to invest, which means that it is essential for a young person to have a stable job with regular income, and then save from his income for any future eventuality.

Increase your savings gradually

One of the things that should be clear to young people is how to deal with the savings they receive at the end of the month. In this sense, experts in financial planning highlight the importance of gradually increasing the amount of money saved for retirement over time.

Business Insider investment manager José Luis Carpathos advises, "Try to maximize your capital, and increase what you contribute to your retirement over time, because this way you will gradually increase your assets."

No need to panic

During the 2009 recession, many people panicked financially and sold the savings and investment products they bet on.

Over time, it was observed that the market decline was natural and not the end of the world. In fact, the stock market crash created an opportunity to buy value, so if you buy when the values are low, you can earn more when you rise again.