November 14, 2024
ticycity.com
Movement Voice

Financial Security for Your Golden Years: How to Prepare for a Comfortable Retirement

Effective Savings Strategies and Smart Investments to Ensure Your Money Lasts Through Retirement

As you reach your 50s and beyond, it’s crucial to understand how to manage your finances. At this stage, life can become clearer, showing that everything might feel like extra baggage. Consider this: if you’re burdened with debt that never seems to end and suddenly lose your job, what will you do?

The key to a secure retirement is to live within your means and save wisely. Avoid spending money you don’t have and don’t rely on future earnings. Instead, aim to save a significant portion of your income—ideally 10-20% or more. Save first, then spend. If you spend first and save what’s left, you might end up with nothing saved.

Don’t keep all your savings in cash, as it loses value over time. Instead, invest wisely. Consider buying annuities, and most importantly, invest in gold. Over a 30-year working life, try to buy at least 4-7 baht of gold each year and never sell it.

Aim to accumulate at least 100 baht of gold. Ideally, have 200 baht. One baht of gold usually covers your living expenses for a month. Right now, gold costs over 40,000 baht per baht. Even if gold prices rise, it will still help you for a month when needed.

On the other hand, if you deposit 40,000 baht in a bank today, it might grow to 50,000-60,000 baht in 10 years. Will that be enough to live on for a month? Probably not.

No matter how inflation affects cash, one baht of gold will always cover a month of expenses. So, with 100 baht of gold, you can live for 100 months, and with 200 baht, you’ll be secure for 200 months.

I’m grateful I realized this when I was 30. I’ve been debt-free and financially independent for years. I saved money by biking to work instead of buying a new car, saving me millions over 30 years. I also have passive income from annuities, social security, dividends, rental properties, and gold, allowing me to live until 90 without touching my savings.

For healthcare, plan ahead. Have health insurance, but don’t overspend. If you can’t afford comprehensive coverage, choose a plan that offers a lump sum for treatment, which helps reduce financial strain. Pair this with public healthcare to save even more, though be prepared for longer wait times as the aging population grows.

Even daily expenses can be managed. I designed my home to be small and energy-efficient. My bedroom is just 6 square meters, and I use a small air conditioner. My electricity bill has been 300-500 baht per month for years.

For daily costs like food and transportation, I take the bus or walk, which helps me save money for travel or dining out.

The aging society is approaching quickly. If you don’t plan and adjust your lifestyle now, you might regret it later. Start planning today to ensure a comfortable future.

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