The idea of abandoning the job market earlier is a dream shared by many Portuguese. Reform before legal age or liquidating home credit before the deadline are goals that seem distant, but may be within the reach of those who define a clear plan and execute it with discipline. The key is in the organization and consistency of small gestures, such as saving some money every month.
Know exactly what you have
Before thinking about early reform, it is essential to make a realistic survey of the current financial situation. This means knowing, as much as money is available in order accounts, savings, investments or other goods.
This diagnosis must be the starting point of any strategy, says Human Resources Portugal. Without a concrete notion of available resources, it is impossible to set realistic goals or to track evolution in a practical way.
Clearly set goals
The next step is to set a specific goal. Instead of thinking only of “saving for reform”, what should, according to the same source, are to create a defined value, deadline and purpose. For example, accumulate an amount that allows you to raise 500 euros a month for 20 years to complement the social security pension.
Name your goal, as “Reform 2044”, and keep it visible in everyday life. Making the concrete goal makes it easy to maintain focus and motivation over time.
Start ‘small’, but start now
No need to have large amounts to start this path. A simple investment of 20 euros already represents an important first step. At first, the results may seem invisible, but the process is moving.
The discipline of maintaining savings effort, even with reduced values, is more relevant than waiting for the “best conditions” to start. Regularity always overcomes the initial hesitation.
Tracking progress makes a difference
Reviewing the plan regularly is essential to realize if you are advancing as intended. Monitoring evolution allows to correct deviations, adjust strategies and reinforce motivation, refers to the previously mentioned source.
If, for example, it has already reached 15% of the goal and is 30% ahead of the planned at this stage, it means that the plan is working. These miles help maintain confidence and enthusiasm in the process.
Adjust the plan to your life
Each person has different realities. There are those who have children, credits, raised fixed expenses or variable income. The savings plan must reflect your life and not that of others.
It is preferable, according to the same source, to save 20 euros per month with consistency than set irrelevant goals and end up giving up. The important thing is to maintain discipline and adapt the effort to its real possibilities.
Avoid direct comparisons
Observing other people’s plans may be inspired, but should not be the basis of comparison. Success is to advance to its pace, according to the resources and priorities it has. Comparing with those who earn more or have fewer expenses can generate unnecessary frustration. Progress should be measured only based on the starting point of each.
Time as the greatest ally
The sooner it starts to prepare the future, the lower the necessary monthly effort. Savings accumulation works exponentially, especially if the values are applied with some yield. Even if they are missing years for the age of reform, time is one of the best resources available, it says. Starting as soon as possible can make all the difference in the future lifestyle.
Small habits, great results
Saving for reform does not have to be a complicated or heavy process. The secret is to make savings in automatic habit, as if it were another monthly expense such as water or electricity. Over the years, these small amounts accumulate and can translate into a solid financial pillow. More than the amount spared in a month, it is the persistence over time it really makes a difference.
Learn, as a curiosity that, in Portugal, more than half of workers expect to work after the age of the reform to complement the monthly income? Already in countries such as the Netherlands, much of the active population invests in funds of private pensions since the beginning of their career to ensure more comfortable reforms.
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