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About a month ago, I was having a conversation with a retired employee and we talked about many aspects of life including money matters. He stated that as a retiree, he must carefully manage his savings because he doesn’t have any other source of income. In fact, he has a plan to sell his house because according to him, his savings are not enough to support him and his wife for years ahead.

Furthermore, he also mentioned that his wife is also planning to sell her properties and use the money as her life saving in case her husband departed from this world. Although it may sound inconvenience to hear, but what he said is very realistic. 

Everybody is aging and dies. It is a fact of life and there’s nothing we can do except to prepare our best. Speaking about preparation for the old age, what the retiree said, made me think about my own life. I would eventually reach an old age and my own retirement, and for that, I have to prepare. Especially in relation to money.

How we prepare our money for old-age and retirement, in my opinion, is a matter of choice. Some of us work as an employee, and  little by little, we accumulate wealth to be enjoyed when retirement comes. But there also people who choose entrepreneurship as a way of accumulating wealth in preparation for retirement and old-age.

The difference between the two, in theory, is pretty obvious. A retired employee will have to survive using his savings, and without any other source of income, his savings will eventually gone. I consider him “lucky” if his savings are enough to support him until he passes away. What happens then if it’s not?

In the case of an entrepreneur, money in old age seems more promising because he would have savings and continuous source of incomes at the same time. These incomes, of course, are coming from the businesses he has established. For that, he will have better luck than a retired employee, because a retired entrepreneur would always have sufficient money to support him until he eventually dies.

I’m not dismissing the role of children. Of course, as children we are obligated to take take our parents, and it is only fair, for us to expect the same to our children.  However, I believe many parents don’t want become a burden to their children. And for this reason, saving with no other source of income and saving with continuous source of income make the difference.

What I’m trying to say here is that, having your own business could lead the way to better financial security than a life-time employment ever could. Regardless of how good your job position is, once you are retired, your saving is the only source of income you have, and it will eventually gone. While as a businessman, you can have, practically, unlimited number of income and continue to gain wealth as long as your business is in operation.

So, it is perhaps a good idea to start rethink about your retirement and old age. If you already have your own business, good for you. But if you choose to stay employed, you might want to consider a side-business that you can run in your spare time in anticipation of your retirement and old age.

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