Goal Setting

OK, you've decided to start planning for your retirement so where do you go from here? The first thing you must do is to list your retirement goals. Do you want to travel? What about moving to a better climate? Maybe you want to stay where you are and enjoy gardening. Whatever your goals, you will need an income. What is that monthly income requirement in today's value of money? You could quite possibly be retired for 30 or more years so you need a plan that will provide an income for several years. How much money will you actually need when you retire?

Budgeting

Next, if you already haven't done so, create a budget. If you don't have a clue about how much you spend from month to month, keep a journal of every cent you spend for three months. You'll see where your money is going and be able to better manage your expenses. Your budget must include a payment to your retirement plan even if it's only a couple Hundred Rands.

Family Members

Discuss your retirement plans with your family, especially your spouse. Chances are you'll both retire at about the same time so you need to be in agreement on this critical part of your life. If you both have a career, you will both be contributing to your retirement funding. Make your decisions together and try to develop a plan that will be acceptable to both of you.

Watch for Plan Busters

Even the best retirement plan could be in serious trouble if you allow yourself to dip into it for frivolous luxuries. If your budget doesn't seem to cover all your expenses, chances are you are confusing necessities with luxuries. Do you really need a pager and cellular phone for everyone in the family? Do you need call forwarding, caller ID, or the second phone line? Little things eat away at your budget. You don't have to do without, just spend wisely.