Financial analysts have developed seven steps that will help accumulate more than a million dollars for old age.
A goal of one million dollars may seem unattainable until a person develops his own retirement plan. For starters, the decision about the retirement age should be made; then you should multiply the estimated annual costs by the number of years that you intend to spend on a well-earned rest and add 3% per year (inflation). The result must show the amount that should be accumulated by retirement age.
Budget: now you need to find a way to achieve your goal with a monthly investment in an insurance company or pension fund. You will have to cut expenses if there is not enough spare money.
Pay off debt: work on paying off any debt as interest payments to financial institutions are a loss of pension savings.
Reserve Fund: a reserve fund is good for unforeseen expenses, job loss or illness. Your emergency fund will help you avoid failure.
Income increase: you should always work to improve your financial situation; it can be courses, part-time jobs, or additional education.
Use government social benefits: states support senior citizen in many ways, but not all retirees are aware of the full list of benefits.
Save as much as possible: typical habit of a poor person is as soon as additional income appears, the money is instantly spent. It was because of the need at first, there was simply not enough money. The habit was later moved to higher earnings.
Source: https://www.fool.com/retirement/2020/02/16/7-steps-to-becoming-a-retirement-millionaire.aspx
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