Many people are looking for the next hot stock or mutual fund that they can make a killing with. What industry will be going crazy, what company will shot straight to the moon? That is not how you have a successful retirement. Looking for the next hot investment will not work.
What will work – and here is the secret – is how you manage your spending. It is not sexy or glamorous – it is calculated decision making that works. Every time you spend, you need to ask yourself “is this a need or a want?” If the answer is a need, then you have to spend the funds, if it is a want, you may need to think twice before spending.
Managing cash flow can be tricky or easy, depending on how much work you are willing to put in. You need to take a hard look at your fixed, regular expenses, than add in your discretionary spending to see what changes you have to make.
Time is on your side when planning for your retirement, use it, and make your spending decisions wisely.