5 Ways to Save Money For Retirement

By Gordon Mackay 


I know of many people who have been paying towards pension funds, retirement funds and provident funds all their working lives and are shocked when they realize they can't retire. They have done everything correctly, followed all "the rules" and paid every month for 30 or 40 years. This is a shocking situation.
The only people who make money are the companies or corporations and the salesman. You would be much better off buying the shares of these large companies.

This is the reason why at the age of 65 only 4% of people are financially free.
Let's get an understanding of how our financial system works:

Up until 1971 we were linked to the Gold Standard. This meant our currency was backed by gold. So our government couldn't print more money when we were going through tough times, as certain countries do today. In simple terms this means when a country's expenses(imports) exceed their income(exports) they just print more money. Over the years, many forms of currencies have become obsolete because of this practice. We now have too much money chasing too few goods which increases inflation, for example Zimbabwe in Africa.

How are we going to create wealth in this inflationary environment when we don't have the option of printing money like our governments do?

• Saving your money in the Bank is not going to keep up with inflation. You are actually going to become poorer.
• Giving your money to the "experts" to invest for you, in my opinion is also not a good idea.

So what do you do?
Here are 5 steps that you can start using immediately to save for your retirement

• Take responsibility for your own money.
• Pay yourself first.
• Spend less than you earn.
• Create a surplus.
• Use this surplus for a deposit on an income producing asset e.g. an investment property.

These are the exact same steps I used, to go from being 5 million in debt in 1991 and technically bankrupt, to retiring within 7 years in 1998.
Take responsibility for your own money.
No one cares more about your money than you do. Always stay in control of your own money.
Pay yourself first.
Pay yourself first before anyone else every month. In other words this must be an expense in your monthly budget. Also automate this payment so it's deducted every month automatically from your salary or income. This money must go into a savings account for use later on.

Spend less than you earn.
Economize, economize, economize at all times and never stop. Even when you are making lots of money keep economizing.
Create a surplus

By economizing you will create a surplus which you can "park" in your home mortgage or in a savings account for use later on.

Use this surplus for a deposit on an income producing asset e.g. an investment property.

In my opinion, the easiest and safest form of investment to fast track your retirement, is to invest in "cash flow positive" investment properties. Here you benefit from your rental income which grows every year plus the growth of your asset

I believe anyone can retire in 5 years or less if they start applying the above basic principles.

Gordon Mackay the author of the book The Streetwise Millionaire, is a world leader in helping people create wealth. As a speaker and author on the subject, he uses his personal experiences as his subject matter. His teachings are based on the truth and factual.

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