An Important first step in learning how to save the desired amount of money for retirement is to recognize where and how you are allocating your money..This is where Budget comes in .

As much you need to plan for savings, you should have a plan for spending. This change in mindset allows you to actively take part in choosing how to spend your hard earned money rather than focusing on the items that you should not be buying.

Steps to Follow:

1. List your expenses and your income – This will give you an instant picture of your cash flow and whether you are overspending or not.
2. Track Your Spending– Breaking down your monthly and annual expenses can help you understand where your money is going
3. Set Goals- Prioritize your spending on the basis of Necessity, Wants and Savings. Necessities are non-negotiable. Continue to spend smarty and adjust your habits until you reach your goals and are successful in setting aside the required amount of money in to your savings/investment account.
4. Review every 3 or 4 months- This will keep you working towards your goal and towards a Happy Retirement.

Even though savings alone will not help you achieve your retirement goal(i will cover that in my next blog), Savings is an integral part and first step towards a healthy relationship with money and you will also have a more positive outlook on the future knowing that you are meeting your goals for Retirement and Financial Independence.