MAL 35:20 MAL35 | Page 10

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 08 MAL35/20 ISSUE 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