There’s are many reasons why people abandon the wage slavery of nine to five salaried work and choose to go into business for themselves. They are sick of not being given the respect or appreciation they deserve from their employers or line managers. They see no opportunities for career progression or are denied it every time they apply, they are under stimulated and restless performing tasks they could do in their sleep or they yearn for a job that allows them greater freedom, flexibility or the chance to do something more meaningful with their family. Whatever your reasons for becoming an entrepreneur, you likely spin a lot of plates throughout the working day. With so many strategic and operational concerns filling your time and your thoughts, you likely have very little time to spare a thought for yourself.
As such, you may be left with a nagging feeling that there’s something you’ve forgotten to do. It flickers in and out of your consciousness like a moth flickering to and fro around a lightbulb. A question that you’re putting off answering because you honestly don’t know how…
Are you saving enough for your retirement?
Why you’re probably not saving enough for your retirement
If you think that you may not be setting aside enough for your retirement, the good news is that you’re not alone. There are a plethora of entrepreneurs out there who have been successful in business for some time yet still fail to make adequate provision for the future. Their reasons are likely the same as yours. They don’t know where to begin planning. They can’t preempt how good business will be in the future so they’re unsure how much to set aside. They don’t want to eat into their profit margins, or they’re just too darned busy. Unfortunately, none of these reasons will keep you warm and well fed when you’re 70 and struggling to make ends meet.
Build your benefits into your cash flow
If you’re the CEO of your own business you likely pay yourself a salary, but you don’t afford yourself the benefits a salaried worker should expect. Why not? Build them into your monthly cash flow projections and you won’t even notice them. Wide profit margins are all well and good, but they won’t be of much help to you when you retire.
Choose the right savings vehicle
Just because your retirement savings used to be covered by your previous employer doesn’t mean that there aren’t a wide range of savings vehicles available to you. It behoves you to talk to a financial advisor who can talk to you about the intricacies of 401ks, a TSP rollover or a SEP-IRA. The right product for you will determine on your needs, your business, your earnings or even your former employer.
Be flexible when it comes to paying in
Unlike your salaries counterparts you have much less of a clear idea when it comes to how much money will be coming in on any given month. While this is certainly a complication, it shouldn’t preclude you from at least trying. Max out your contributions when business is booming and you can scale them back when times are a little leaner.
As busy as you are, there’s no reason why you can’t start saving for your retirement today.
