Save for Retirement in Five Years

You may be facing a retirement crisis. You may have lost your savings in the stock market. You may just hate your job and want to get to really living as soon as possible. Either way, saving for a basic retirement package that will cover your daily living expenses in five years might be easier than you thought. Follow these steps closely to see your financial goals blossom sooner than you expected.

In Quickbooks, or whatever financial software you have chosen, start recording your daily and monthly expenses. This is a practice that should continue during your five year savings period in order to curb excess spending and show you where spending and savings habits can be improved.

Being writing down your savings goals in your planning software, or in a simple notebook. If you aren't sure where to start, begin by planning to save the amount of money you will need to cover basic expenses, such as housing and utilities. You can even begin with just one bill, such as the power or water expense you usually pay each month.

For that first finacial savings goal, start small and try not to overestimate the return on your investments. Calculate the interest that you will need to garner each month to cover that first bill and create your first savings goal according to that number. Talk to a trusted banker or your financial expert for a formula based on your investments that will help you calculate the savings you will need.

If you plan to retire in five years and have little to no savings, it's time to re-evaluate your retirement plan. Concentrate on covering your basic expenses (shelter, food, utilities). Then, work on paying down every debt you have so that your monthly costs will be as low as possible. Also, consider downgrading to a less expensive home, car, and lifestyle that will still bring you comfort and happiness while requiring less from your bank account. This is an often overlooked option that can save thousands of dollars and shave years of time off of your retirement savings plan.

Begin cultivating your own side stream of income (or multiple streams) immediately. Open a low cost Ebay store, invest modestly in a small business you've always dreamed of, start freelance writing, or whatever it is you have always wanted to do that will also bring in extra cash during your retirement. Retiring in five years with enough cash to cover your basic bills is doable, but don't fool yourself into thinking that you will have enough to give up any sort of work altogether. Have your retirement goal to be being able to quit your day job while pursuing a part time interest you love, all while comfortably being able to cover your basic expenses.

For the highest rate of successful return on your investments, it is highly recommended that you schedule an appointment with a financial advisor, and stick with a good national banking chain throughout your five year retirement savings journey. Working with the same people over and over again, provided you feel satisfied with them from the start, is the best way to make sure your money is carefully handled by those who understand your needs and goals.