How do you retire well when you don’t have a lot of money? It’s a great question, yet also subjective. That’s because we all have different ideas of what defines retirement and what defines a comfortable lifestyle. With that in mind, I have a practical solution for retiring comfortably even with limited funds.
It’s known as Just-in-Time Retirement, a value-based approach to achieving retirement success that takes into account your current financial situation.
I’ll explain how you can maximize the money you have, which is different from most websites that advise on how much money you should have.
Before we delve into the fundamentals of Just-in-Time Retirement, I want to emphasize that I am not a financial advisor. Financial advisors aim to plan your retirement and handle your finances. In contrast, my goal is to empower you by providing the tools to plan your retirement.
Just-in-Time Retirement – a practical solution for retirement.
Just-in-Time Retirement is a practical solution to retirement based on respected business principles. It’s for those retired or entering retirement and worried about their financial future. And that includes most people. In fact, a recent survey found that 27% of people 59 and over have nothing saved for retirement.
That said, Just-in-Time Retirement is an easy, value-based retirement plan based on the world-renowned Toyota Production System. You may or may not have heard of the Toyota Production System. It’s commonly used in a “lean” manufacturing environment. Its philosophy aims to eliminate waste which provides optimum efficiency, thereby raising ROI, return on investment.
With Just-in-Time Retirement, you treat retirement as your business, eliminate waste, and live efficiently. In turn, you create more cash flow to live abundantly.
This value-based method is effective for retirees or people who want to retire and are searching for alternative solutions to working longer or saving more.
Those in pursuit of fulfilling their retirement goals, but haven’t achieved their financial goals will find it helpful.
What is a value-based retirement plan?
A value-based retirement plan is a personalized approach to planning your retirement based on your values and priorities. You are in charge of the results – not your financial adviser, or the fluctuations of the stock market.
Value-based retirement planning is based on the idea that you plan your retirement around what you value and eliminate what you don’t.
The method is “lean”, but it’s not about living with less. It’s a continuous process. As you work with the method, you may discover you have more!
By removing waste, you put your money toward what you value.
What is considered waste in retirement?
Waste is anything that does not add value to your retirement. Therefore, it is anything that no longer provides a benefit to you – especially possessions that are costing you money to retain.
Friends, family, and even we pressure ourselves to keep things based on sentimentality or what we consider logical thinking, thinking that we might want or need it in the future.
However, this retirement method is not about downsizing. I’m not suggesting you toss everything out or sell it on eBay. However, I am suggesting taking a long hard look at big-ticket items that are costing you money to retain. For example, through rent, maintenance, and insurance.
Let’s look at this personal example of waste as told in Rebel Retiree’s article Eliminating Waste and the Cost of Ownership.
“I needed the space to house a machine that was no longer used. The machine was kept because it had a good engine worth $4,000. So in my wisdom, I paid $1,000 per month to house a machine that would go to the dump. I’m not the only one that has paid $12,000 to keep a worthless item.
Consequently, he wasted thousands of dollars housing outdated equipment he didn’t use.
It’s not uncommon for many of us to maintain ownership of things that no longer offer us any real value.
Common examples include:
- fishing camps
- boats
- houses
- RVs
We waste money to pay rent, insurance, and upkeep on possessions we don’t use based on the possibility that we might.
Read: Eliminating Waste and the Cost of Ownership
Develop a continuous improvement mindset.
For best results, develop a continuous improvement mindset. A continuous improvement mindset is forward-thinking. It’s a culture in which you continually look for ways to improve your “retirement business”.
It’s not a singular event or action you take, but a continuous process of improvement. The idea is that you make gradual and continuous progress toward positive lifestyle changes that can lead to better results.
In essence, you don’t make the same lifestyle mistakes over and over. You continually look for areas to improve your retirement lifestyle by removing waste – things that no longer hold value. Consequently, you reap the rewards of a Just-in-Time Retirement that reflects a retirement of living well.
Practice asking yourself, “Is this something that I value? Does it, or will it still hold value in my post-career life?”
Get started with value-based retirement planning.
First, adopt a mindset that involves embracing change. Think of your retirement as a business, with you as the boss deciding what makes it successful.
Secondly, businesses encounter challenges. In the case of couples, they often encounter the following obstacles when beginning value-based retirement planning.
- Giving mixed signals
- Having a lack of trust
- Skeptic about the plan
- Lack of commitment to the goal
- Inconsistent direction
In these cases communication is key. Otherwise, if you are alone, once you are dedicated to success, the rewards will outweigh the obstacles.
You will find new resources to live the retirement of your dreams. In addition, you can enjoy an abundant lifestyle without worrying about money.
For this process to be successful, communicate, collaborate, and work on your mental dialogue.
Read: Don’t Compromise With Your Spouse on Retirement Plans
4 important steps for value-based retirement success.
1 – Identify Waste – Think outside of the box. Where can you remove waste? Are you purchasing big-ticket items that you could rent? A boat is a great example. Boats cost money. Think slip or dock rental, maintenance, repairs, insurance, etc. Could you rent a boat for a special occasion instead?
2 – Make a Plan – Plans can be flexible. But if you set a goal, it helps to guide you in the right direction. For example, if you’re planning a vacation, having a flexible itinerary can accommodate unexpected changes, but having a specific goal, such as visiting a particular landmark, can help shape your overall travel experience. You achieve better results when setting goals this way.
3 – Implement the Plan – To achieve success, it’s important to make a strong commitment. It’s crucial to break free from old habits that may hinder progress. Stay focused on your goals and be determined to overcome any resistance that comes your way.
4 – Check Results – Have you achieved the desired outcome? It’s important to continue persisting in your efforts for ongoing improvement. Consistent dedication and perseverance will help you reach your goals and make progress toward success. Remember that small steps taken each day can lead to significant improvements over time. Keep pushing forward and stay focused on your Just-in-Time Retirement journey.
Conclusion
Many people think that retirement planning is all about having a specific amount of money set aside. However, this isn’t always possible for everyone. A Just-in-Time Retirement is a value-based plan for anyone who is open to adopting a continuous improvement mindset in order to achieve a successful and abundant retirement lifestyle.
Related Articles You May Like:
- Just-in-Time Retirement
- How to Retire at 62 With Little Money (It’s About Value)
- Solutions if You Didn’t Save Enough for Retirement