What is a Retirement Fund and Why You Need One

Retirement planning

We work every weekday to earn enough money for ourselves and our priorities. We pour our blood, sweat, and tears into our work so that we can secure a future for ourselves and our family.

So what happens when we cannot work anymore? 

Who pays for our expenses when the income stops? 

Retirement funds are set up precisely so we can retreat from work after a certain age and let our savings pay for our spendings. 

Retirement funds, or pension plans, can help us maintain our standard of life even when we can no longer manage to go to work. It is essential to take note of your net income and your expenditures in order to figure out how much of your current income you can invest in your retirement fund. 

You Can Spend Your Retirement Years in Peace

Human beings typically find it difficult to work once they have entered their 60s. The body becomes weak, and it simply doesn’t make any sense to put it to work every day. However, retirement does not mean that you should not be able to live in your own house, take care of your loved ones, and pay for your own habits. 

Having a retirement fund would mean that you get to live your life when you’re in your senior years with the same luxuries and the comfort as you do now. Being able to maintain the standard of life you’re used to now post-retirement is of utmost importance, and in order to do that, you need to plan ahead of time.

A retirement fund is the only thing standing between a retired person and poverty, and its need or significance cannot be stressed enough.

You Will Be Able to Afford to Indulge Yourself Even When You’re Not Earning

Pension plans are not merely about survival; they are also about living a dignified life, full of pleasures and good times. Just because you’re retired does not mean you shouldn’t have any fun. Investing in a retirement fund now will let you fulfill your desires when you’re retired, and you can live a happy and content life by depending on the fund.

If you want to have the ability to indulge yourself when you’re retired, it’s never too late to start investing in pension plans now.

You Will Be Prepared for Emergencies in Your Old Age

Disasters don’t discriminate between the young and the old. Any calamity may befall us at any moment in time. While you’re earning money every month now and can manage to pay for huge, unexpected expenses without running into debt, this might not be possible when you’re retired. 

If you have a generously large retirement fund to rely on, no matter what tragedy you face, you can do your best to fix it without worrying about bleeding money.

Final Thoughts

If you’re convinced that you need to start investing in pension plans, you can start by doing some research on services that will let you invest in one and then go ahead and invest in one that you think you can trust.

invest money

Choose Whether You Become Rich or Stay Broke

invest money

Many people complain about being broke. They will complain, but they will not do anything to change it. Complaining about not having enough money sort of becomes part of their everyday routine like going to work or doing a daily task.

While getting comfortable at this pace is normal, you have to voluntarily remind yourself not to resign to the fact and not to accept it. Complaining is the little solace people seek when they have given up. You can blame everything and everyone, but at the end of the day, the responsibility to succeed lies on your shoulders.

You have to choose to become rich. You have to choose to work. Everyone’s “rich” is going to be different. While for some people having a lot of money means being rich, on the other hand, being able to afford whatever they need and want means being rich to others.

Whatever your definition of rich might be, one thing remains the same, and that is – working hard. Both situations are hard. Staying broke and getting from one day to another is hard. Working tirelessly to become rich is hard as well.

As Eric Worre said, “Becoming rich is hard. Staying broke is hard. Choose your hard.”  A lot of things that we achieve in life or accomplish are based on the choices we make. Our finances are no different. You need to have the mindset to achieve the financial state you want. You can’t be comfortable with what you have and complain about not having what you want.

You need the hunger and passion in you that makes you a go-getter. If you’re in a financial crunch, then this becomes even more important. Not having good financial health will eventually hurt your health – mental, emotional, physical.

If you are struggling to make ends meet month after month, then I understand how exhausted your mind is going to be even with your responsibility, let alone taking on extra work to better (not only your job but also the things that you do to change your situation) your situation.

But you will have to use that pressure you feel to your benefit. Use that pressure to learn something that will help you. Learn to start a budget, improve your budget plan, stick to it, etc. so that you can take the pressure of financial insecurity off of your back.

At some point, you have to decide that this ends now. You will be the one bringing about the change. You will be the one coming up with ideas to improve your financial health. When you start taking small steps, there is no looking back.

Final Thoughts

You have to make the choice of working hard rather than working hard at complaining. You have to work toward improving your finances and not staying where you are right now. The first step is the most difficult, then you start getting momentum, and eventually, it becomes easier.

It might sound cheesy, but in a way, you do decide your own destiny. Fortune isn’t going to fall in your lap; you have to work hard to reach it. Be consistent and persistent; choose to become rich not to stay broke.