Who does not want to own a million dollars by their retirement age? Since majority of us are not entitled to that much of an inheritance, wanting to settle comfortably is always the goal of every individual. While this may seem too much to achieve, it is actually possible with proper allocation of time and money.

Smart spending

It is easy to give in to luxuries and unnecessary expenses when you know you can afford with a regular source of income. However, although your pricey everyday coffee and branded shoes does not seem much to you at present, it will be an unpleasant shock for you in the long run once these add up, robbing you of money that could have been an addition to your savings.

It would help to follow a strict budget and adopt a simpler lifestyle, as long term gains are the consequences of a little sacrifice. This does not equate to cutting out the fun in your schedule, but rather keeping your expenditures in moderation.

Early retirement preparations

The problem with youth is they do not prioritize their settlement funds right away, lulled by the idea that they have much time to dwell on it. Unknown to them, this practice will leave them with a lesser amount in the future due to compounding. Aside from this, you're bound to end up cramming your way to a sustainable savings by allocating huge sums, which will still give you a lower amount compared to when you’ve started in your 20s.

Purchase a house

Many individuals are renting apartment, but this setting is not recommended for life because buying a home is a good strategy for building equity. Start setting aside a downpayment for this, unless you have plans to move in immediately.

Choose practicality in wheels

There is nothing wrong with treating yourself to a high end car, however, a vehicle is among the assets which rapidly depreciates. A brand new car loses 15%-20% of its value every year, so if you plan to own one, it would be better to opt for something that will cost you less monthly payments, and invest in something that will appreciate overtime instead.

Boost your career

Sometimes, employees make the mistake of overstaying in a job despite not seeing a hike in compensation. Aside from wasting time, this move will keep you from increasing your rate of saving so keep a close watch and grab every opportunity.