Do you dream to say Sayonara to your daily nine-to-five schedule and see the world, before you actually turn 60?
How do plan to fulfill such a beautiful dream of your life?
How do you interpret to see yourself retiring being financially successful?
Well, these questions are not as complex as they may seem. In theory, it is actually based on three very simple and easy-to-understand principles. These include: the amount of money invested, its growth rate and the amount of time required for its growth. A lot of good things heard. Now, comes the time for some reality check.
Have you ever wondered why very few people actually succeed in building enough wealth for their early retirement?
The reason is a lot more rationality involved, than the above stated theory. Rather than understanding and following the simple principles mentioned above, it is all about taking effective and result-orienting actions.
Therefore, the challenging part is not just knowledge, but applying the same into obtaining serious results
The key to early retirement planning, via smart wealth building is not only about learning, but about living by the tips mentioned below:
1. A plan:
Are you actually building a plan, and taking the necessary action to accomplish your desired goals? If not, begin now for a 10-fold improvement for a life-reversing difference worth applying. The formula for financial success will work, only if you have a plan of action.
Most people choose to look wealthier than being one. They tend to pick a rich lifestyle over achieving financial freedom. Rather than accumulating assets, they actually spend. How can you even afford to become rich in such a situation? The simple rule to follow is ‘the sooner you begin to save and the more you do, the quicker you retire successful’.
A golden rule says ‘Learn before you can actually earn’. Do you know what influences how much you earn? Always remember that acquiring good amount of knowledge will always be a profitable asset for your bright financial future.
4. Early Start:
Procrastination, or delay, is like a wealth suicide on your investment plan, where an opportunity is buried. The earlier you start, the easier will be the process to grasp. Will you let this suspension demon, prevent you from retiring early?
Some simple ways to automatically heading towards building wealth include: own your own house, renting property, invest in automatic saving &retirement plans, and gain as much investment knowledge as possible via attending clubs or reading the latest newsletters. Do you choose to develop your financial intelligence as an automatic habit, or let the opportunity slip away?
6. Be responsible:
Organize your life in a way that wealth accumulation becomes a habit, rather than a process. And, who else other than you, are responsible for doing so? To achieve true financial success, the bottom line is a strong decision-making, for which only you are responsible and only you hold its results.
7. Commit towards success:
Design your retirement plan in a way that is consistent with the time and resources required for success. Moreover, be willing for committing those resources to the process.
8. Risk Management:
It is necessary to practice defensive investing via effective risk management. Risk Management principles apply equally both to personal as well as portfolio finances. How do plan to manage both of these risks efficiently?
9. Apply Common Sense:
Does your retirement plan investing, pass the business common sense test? The price paid for any investment must make sense economically and consistently with the earning capacity of the corresponding business you invest in.
10. Get a life:
Money is not life, but just a lubricator to it. What do you do of the wealth, without a good health? Therefore, invest quality time in enhancing your health, relationships, and thus your life. Money being just the means, one should actually find the real tools of a fulfilling retirement.
There is a lot more to achieving financial success, apart from just identifying the important principles. As you have now learnt most or all of the ‘early retirement’ principles, the question arises on whether you are actually living upon them? If you are at the beginning of the career or middle of the career, you need to have well drafted financial plan to achieve your financial goals including your retirement.
(The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He Can be reached at email@example.com)