5 Tips to Make Your Post-Retirement Life Easy

#2. Know the magic of compounding

Cheshta Mann
Oct 19, 2020 · 6 min read
Photo by Darío Martínez-Batlle on Unsplash

Most of us relate the idea of retirement with having peace of mind later while not fussing about our finances. To make this happen, we work our asses off for more than half of our lives. While some of us take the route of 9–5 jobs, others choose to pick their own schedules working as a freelancer and instilling their energies in their business ventures.

Getting bi-weekly or monthly paychecks is awesome, but if you are not familiar with the essence of saving, investing, and managing your hard-earned money, you’ll be putting yourself in a financial mess later.

Let’s have a look at a few things that will save you from financial distress post-retirement:

Start with saving habits

The first step to retiring with a peace of mind starts with saving. I am not saying that 0.1% interest on your savings will make your post-retirement game work. But, it’s better to save money rather than spending it unknowingly on the things you don’t actually need.

You can invest these savings in different types of investments like stocks, real estate, equity, etc. which will ultimately translate to more returns.

To develop saving habits like a pro, ensure to transfer 20% to 25% of your monthly income to your savings account. And then, utilize the remaining income for paying your monthly bills, expenses, and spending some on the things that make you happy.

But hey, don’t fall into the trap of impulse buying! Whenever you are tempted of making an impulse purchase, give yourself a window of 3 days. If you can survive without it for this time period, you don’t really need it.

Actionable tips:

  • Transfer at least 20% of your monthly salary to your savings accounts.
  • Use the remaining money for meeting your fixed and variable expenses.
  • Luckily, if you are still left with some money after incurring expenditures, keep it aside for your leisure activities such as traveling, dining out, etc.

Know the magic of compounding

In my early 20s, I was fortunate to have known the importance of investing in funds that offered compound interest. The credit goes to my parents’ experience with investing in similar funds for years followed by my education in Finance.

To reap benefits from this magical compounding formula, the earlier you start investing, the more net worth you will build in the coming years.

Investing in secured funds for a long period of time assures that your money is safe. At the age of 23, I made my first investment of around $3,000 @ 8.1%. Since then, I keep aside $250 from my paychecks (on a monthly basis) for further investment in this account. Let’s say, I invest the same amount for 15 years, then I’ll be getting the amount of $98,392.18 at the time of maturity, provided the rate of interest remains constant. Even if the rates fluctuate, like nowadays, it is 7.1%, it will still be better than letting your money rot in the savings accounts.

Screenshot from moneychimp.com

Actionable steps:

  • Invest in long-term funds having lesser fluctuations in interest rates.
  • Search for the ones that charge zero to a negligible amount of tax.
  • Keep investing without making any withdrawals.
  • If possible, diversify your investments to keep receiving at least feasible rates of interest during uncertain times.

Have a side-hustle

Besides your regular 9–5 job, spare some time for making a side income. Don’t be scared of how you’ll manage it or what side-hustle you should pick. From offering online tutoring classes to driving an Uber in your leisure time, there are lots of options to choose from. All you need to have is a firm belief in yourself.

Apart from my 9–5 job, I work as a freelance writer, editor, and proofreader. I invest a couple of hours either daily or solely on weekends depending on how intense my deadlines and schedules are to keep the extra money flowing.

Spending a couple of hours in my side-hustle diversifies my income streams and gives me more opportunities to save and invest.

Actionable tips:

  • Take a step-by-step approach. Set easy-to-accomplish goals initially and don’t overwhelm yourself solely with this wild thought of making money.
  • Identify your skills and potential and build your side-hustle around it. For instance, you might be blessed with world-class bakery skills, then why not start with selling cakes and cookies?

Invest in yourself

A person who is not wilful of learning or expanding his/her knowledge eventually doesn’t grow professionally.

When you invest time and effort in improving your skills, you are indirectly working towards the ‘make post-retirement life easy’ goal.

I am an unapologetic curious learner. Despite having a Master’s degree in Finance and Accounting, a few months back, I had that urge of learning some more in accounting. Hence, I decided to start preparing for the CPA certification to upgrade my skills. Why? Besides gaining valuable knowledge, my professional net worth will automatically increase by having that CPA tag before my name.

Learning doesn’t have to be always intense. You can pick anything that interests you and broaden your skills in that niche.

By investing in yourself, or upgrading your knowledge, you will have more chances of getting better jobs, being promoted, and being aware of the latest trends in the industry.

Actionable tips:

  • Pick a course/certification related to your industry or profession.
  • Spend at least 15–30 minutes daily on developing your skills.
  • Don’t forget to brag about your skills on your resume and LinkedIn.

Don’t become a slave of luxury

We tend to connect luxury with a lot of glamorous and extraordinary things. A luxurious bungalow, an expensive car, tons of GUCCI outfits, and what not! But what differentiates a common product from a luxurious product, provided both of them offer the same quality of service? It’s the price tag!

When we receive juicier paychecks, our lifestyle needs automatically tend to increase. However, if you can control this reckless habit of spending on these not-required but tempting luxury products, you will save a lot of money.

Try to develop a minimalist approach rather than falling for high-priced products and spend wisely.

Actionable tips:

  • Choose the quality of a product over the price tag.
  • Teach your kids about the value of money at an early stage.


It’s never too early or too late to get started with managing your finances for your post-retirement phase. While earning money paves different ways towards making investments in other areas, you should make it a priority to do in-depth research before investing your money.

Key takeaways:

  • Start with saving habits
  • Know the magic of compounding
  • Have a side-hustle
  • Invest in yourself
  • Don’t become a slave of luxury

Considering the monetary aspects, I rely on interest income and the income from my side-gigs for churning an additional amount of money. I create a monthly budget based on my fixed monthly expenses and keep a check on my spending habits. I make sure to not go beyond the set budget standards and save and invest accordingly.

By now, you must have known that I have a knack for learning new things. My next learning regime will be revolving around investments in shares, mutual funds, and stocks and invest little chunks of money in these streams.

So, get started with your financial planning journey today and make your post-retirement life fun and easy.



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Cheshta Mann

Written by

Freelance writer with an experience of over 6 years. Assurance Specialist by profession. Dog-lover. Connect with me on https://www.linkedin.com/in/cheshta-mann/


Outstanding stories objectively and diligently selected by 40+ senior editors on ILLUMINATION

Cheshta Mann

Written by

Freelance writer with an experience of over 6 years. Assurance Specialist by profession. Dog-lover. Connect with me on https://www.linkedin.com/in/cheshta-mann/


Outstanding stories objectively and diligently selected by 40+ senior editors on ILLUMINATION

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