The key decision one can make during
working years is to postpone consumption
especially of luxuries and increase
savings preferably in a SACCO. The
accumulated savings can be invested an
income generating project or investment
instruments such as shares, Treasury Bills
and bonds. Some people have invested in
real estate that eventually produces rent
income that outlives them.
People have a tendency to create all sorts
of flimsy excuses for being unable to save
money. Some deceive themselves that
they will begin saving when their salaries
are increased. Others are convinced that
savings cannot be made out of the meager
salaries they earn. These and similar
deceptions will not be a remedy to the dry
spells of money they are likely to face in
retirement.
Saving is a habit one develops regardless
of the amount of salary you earn. Needless
to state, money matters require self-
discipline driven by one’s specific financial
goals. Self-discipline is the key stepping
stone towards financial independence.
It can empower you to save more money
compared to spending it on unbudgeted
for items.
Financial experts have proposed that a
monthly salary be allocated on the ratio
of 50:30:20 for living expenses; other
expenditures and savings respectively.
Over a long period, the money saved could
be available for investments like starting
a side hustle. When the side hustle
succeeds, it turns out to be a safety net or
soft landing while earning you revenue in
retirement. The ball is in your court during
the employment season to apply the above
ratio and monitor your progress towards
achieving personal financial goals.
Retirement Home
During working years, some people stay
either in rented houses or staff quarters.
The two types of housing sometimes put
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People who live in a stable family are able to
weather both internal and external storms
of life. But those from problematic families
are unable to obtain the family’s support
in times of need. Family relationships nur-
tured during employment time would facil-
itate one’s seamless transition into retire-
ment. Poor relationships today are bound to
be carried forward and cause psycho-social
adjustments in retirement a real nightmare.
them in a comfort zone that becomes
unfavorable when retirement knocks at
the door. The occupants will be required
to move out of the houses for alternative
residences. A few would immediately wish
to move to cheap houses within town or
its suburbs. This temporal movement will
be short-lived because the fresh retiree
will not have a regular source of income
for rent payments. Finally, the retiree may
be forced to relocate elsewhere to meet his
or her shelter needs.
Cases of employees refusing to vacate
staff quarters or rented houses have been
prominently featured in the local media.
Landlords or employers have sorted out
the impasse through evictions after expiry
of notices. Families have sometimes
put up with ugly eviction episodes that
include brutal physical fights. To avoid
such unbearable evictions, it is advisable
for one to plan and build a house where
you will reside in retirement.
Some employees may decide to relocate
to the rural area, preferably their ancestral
community. Those with an existing house
will move in and begin adjusting into the
rural life with its challenges. If you had
not built a house back at home, you could
use part or the whole terminal lump sum
for one.
Of late middle class employees are living
in their own houses. For the people in this
category, retirement does not make any
difference on the issue of shelter. However,
some retirees with empty nests vacate
their houses for relocation to either the
rural area or nearby cheaper suburb. They
let out the vacant house as a new income
stream.
Unfortunately, other retirees have been
thrown out of their own houses by their
adult children. The children have argued
that they need the houses more than their
aging parents. On planning for retirement,
working people should aim at owning
retirement homes. Such an owner-
occupied house in whichever location
will enable a retiree to begin his or her
retirement on the right footing.
Side Hustle
Nowadays, full-time employees are
stealthily starting and running side hustles
to not only meet their living expenses but
also as a possible soft landing whenever
employment is terminated. Although
the idea of a side hustle is attractive, one
should select those that are not in conflict
with the current employment. People who
have ignored this advice have lost their
jobs at a time they are most needed.
Starting a side hustle is easier, but keeping
it running viably is a completely different