Many of us dream of seeing the world on our retirement and fill our bucket lists with famous sites, locations, and experiences all over the world. However, if you want to be able to afford to travel in this way there are many factors to consider and plan for now, even if retirement is still far away. Keep reading to find out what they are.
Decide on a standard of living/ travel you will be happy with
First of all, you need to have some idea of the amount of money you will need to do your traveling, and live when you are at home, once you retire. One of the most important factors to consider here is the standard of travel that you expect. After all, you will need to save up much more money for your retirement if you want to head off on regular 5-star cruises, than if you will be happy living out of your RV!
Additionally, you will need to consider whether you plan to be traveling or on the road all of the time or whether you would prefer to have a home base but go on lots of vacations. If you choose the former, then you can sell your home and use the capital to help pay for your travel. However, if it’s the latter, downsizing may be the best option as it will free up some money but also allow you to keep a permanent place to return to once you are done traveling for a while.
Increase your income now
Another smart strategy is to do what you can to increase your income now. Of course, the idea is that instead of using this extra income to boost your current standard of living, you put the money away to pay for your adventure during retirement.
There are several options available to you here as well, from going after that promotion and pay rise in your current job, to using a side hustle to create multiple income streams.
Consider your saving and investment options
Once you have maximized your income, it’s time to make that extra money work as hard as possible for you. Of course, what we are talking about here is savings and investing. The good news is that because both tend to work better over the long term, you have a good chance of increasing your assets before you retire. The bad news is that saving and investing for retirement can be a complicated issue to get right. Although speaking to a professional with experience in retirement planning and finance can be very helpful here. After all, it’s their job to understand and guide you to the best and most profitable path.
Set yourself staggered goals and stick to them
Last of all, if you want to accrue enough money to go traveling once you retire, it can be helpful to set yourself a smaller, staggered goal. Indeed, by setting yourself a yearly goal, you can more easily stay on target and slowly build the amount you need to enjoy your global adventures in later life.