To know how to retire young It is the dream of many.
Having the peace of mind of NOT working for money but having money work for us is a privilege that few people can afford.
The people who knew how to retire young, share different strategies to achieve early retirement. However, there is one strategy in particular that everyone considers vitally important:
save and invest. It’s logical, right?
- How are we going to survive without working if we don’t have savings?
- How are we going to increase our capital if we don’t invest our money?
The question is that if the majority wants to know how to retire youngWhy are so few saving?
Surely in some families it is very difficult to save because the economic situation does not allow it. But for people who can afford to save and don’t, it’s simply because they don’t know how to save correctly.
Since one of the main excuses for not investing is not having the money to do so, we will focus mainly on saving as the definitive strategy to learn how to retire young.
I bet that at some point you have said these phrases:
- “I need to buy that” (when you know it’s actually not true).
- “I am young and I have no responsibilities”.
- “I start saving the other month.”
- “I like to live in the moment.”
- “Money is for spending.”
There are many excuses we make to attempt against our early retirement, that’s why Todd Tresidder, investor, money coach, author and retired at 35; gives us 6 tips to save if we want to reach the goal:
How to retire young by saving.
1. Goodbye credit cards.
The moment you see that television you love so much, your credit cards start to smile and help you imagine it on the living room wall; the temptation becomes stronger than the will and lol!…new television.
Then the same thing happens with other things and when you realize, the monthly expenses are higher than the income.
You already have the cards and getting rid of them will not be so easy. Pay off the debts with the highest interest first and move on to the others. The sooner you can get out of those debts, the faster you’ll start saving for your retirement plan.
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2. Automatic saving.
Can you have part of your salary go directly to your retirement plan account? For sure yes. Todd Tresidder says it’s best not to look at the money, since we are hardly going to miss something we haven’t had.
3. Resist change.
Logic says that the more time passes, you will start to earn more money; And that’s when you have to be very careful.
Usually the more we have, the more we spend. The advice is that that money that we did not have before goes directly to savings. For Todd that was the foundation that allowed him to retire early.
Also read: How to avoid having debts.
4. Eliminate unnecessary expenses.
Can’t resist walking down the street, seeing a starbucks and buying a latte?
We all have weaknesses that have become a habit; The point is that these ant expenses end our savings.
If we eliminate these “cravings” from our lives, in the long term the savings will be part of the difference between early retirement and the continued dependence on work.
5. Build your own business.
It is evident that working to set up a separate business will not be easy, but it will surely be worth it.
Mainly because you will have extra income that will make retiring young a reality, and the most important thing is that after your retirement you will have something that you like and in which you can spend time.
It can even become your main income (That should be the goal) and speed up the process.
Don’t you know what you could do? You can learn how to make money with a blog, or try one of these profitable businesses.
6. Let someone else pay what they want.
If buying a car is essential, try not to buy it new. Keep in mind that as soon as they leave the dealership, their value drops considerably, and if the goal is to retire early, the smell of new will not justify the expense.
Do your research and you will surely find a good vehicle at a very good price. The same is the case with many other products.
Remember that saving is only the first step! These savings must be invested carefully to be worthwhile, as having the money saved will not do any good.
In addition, you must take into account the following:
- Determine at what age you want to retire: So you can calculate how much you need to save and invest.
- learn to invest: Knowing how to earn money in the stock market will allow you to be in the select group of millionaires.
- Create multiple sources of income: Apart from creating your own business, you can invest in other projects.
- Get a financial adviser: If you see that things are not right, do not hesitate to ask for help.
And remember, if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
