How to Prepare for Retirement If You’re Working From Home

Updated on February 6, 2020

Working from home doesn’t mean that you have to work all your life. You also have to think about retirement. I know that retiring for those who work from home may just seem impossible. It’s pretty understandable. How can you stop when you know perfectly well that you can earn money and stay at home at the same time. But, life is not all about work, and you really should consider retirement. Retiring does not have to mean that you’ll completely stop working. Think of it as motivation to start working hard today, especially if you feel like you are behind in your savings. You can also look at retirement as having more time for yourself and your family. Although I am not saying that you should depend on your retirement. No, what I’m saying is that you should arm yourself with all the resources you can get your hands on, so if, in case anything happens, you are prepared.

About 62% of Americans still believe that they are behind in their retirement savings, as detailed in the 2019 TD Ameritrade report. The survey included individuals aged 23 and older, with more or less $10,000 in investable assets. About 31% of Gen Xers shared that one of the reasons they do not have enough savings yet is because they have inadequate income. This particular reason is why there is a growing gig economy. People understand that they have to augment their sources of revenue. If you are keen on finding out how you can adequately prepare for your retirement, here are some suggestions: 

Let Your Money Work For You

I’m pretty sure you’ve heard of this before. Yet, you still haven’t gotten around to it. You have to know that you shouldn’t really be working for money. You have to let your money work for you, and one of the most effective ways of doing it is by taking advantage of compound interest. While you focus on your other gigs, you have a continuous stream of passive income. If you start now, you can still catch up. Say you’re still in your early 20s and save about $420 monthly, you can become a millionaire by the time you are 67 years old. But, that’s based on an average annual investment return of 6%. Of course, that’s just from your investments alone. Not included are your earnings from your side gigs. 

Get Life Insurance

Many fail to see life insurance as an essential component of a retirement income plan. Often, they look at life insurance as a means to protect families from an early loss of the breadwinner. If appropriately used, life insurance can be much more than that. Getting the right type of life insurance from Allstate or from other insurance companies can help you achieve several goals with just one plan, including protecting your income, having tax-free cash flow, assisting in managing taxes, and improving total returns. 

Having Multiple Sources of Income

Keep this in mind: when you bring in more money, you can put more towards your savings. For people working from home, this means getting multiple streams of income. In a gig economy, you don’t have to rely on only one source of income. There are tons of ways on how you can make money online. You can earn extra money through YouTube, blogging, and several forms of freelancing. 

These tips can help you save up for your retirement. Make sure that you have a goal of how much you should have in your savings and the timeline on how long you should work for it. This way, you can see how far along you are in your goals.

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