04 Feb 2020
It is a common tendency that professionals upsize their lifestyle when their income or salary increases. They get a nicer apartment, get a new car, buy more expensive brand name clothing or send their children to fancier schools.
After all, who doesn’t want a better lifestyle than they had before? But it’s easy to get distracted by the extravagant. Will it ever be enough? Where do you draw the line?
Many expats move abroad for a better quality of life, better salaries and to save up a nest egg for retirement. It is easy to lose sight of the end goal and the reason why you moved abroad in the first place. It’s very easy to have a huge salary but have no savings.
It’s the age old saying “if you earn more you spend more”
Keep the end goal in sight
• Decide how much you want to save for retirement and commit to it – The more you earn, the more you will need to save to maintain your lifestyle and standard of living later.
• Create a budget to keep track of your expenses – If you know what you give out, it’s easier to plan how much you can save.
• Try to clear any debt first before increasing your expenses – the more debt you have the less you can save for retirement.
• Rethink the urge to upsize – it could get you into financial trouble and sabotage your retirement goals.
• Waiting to increase your retirement savings contributions could be detrimental to the final value of your pension. The more time compound interest has to grow, the better for your pension pot.
• Make sure you have a reliable and knowledgeable financial adviser – ensure that your investments are globally diversified to mitigate your investment risk and ensure the best possible returns.
• Before you splurge, ask yourself if you have an emergency fund for those unforeseen expenses.
(Some information taken from Gulf news)
Chat to your deVere Acuma adviser to help you keep track of your savings and retirement goals. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.