IF YOU WANT TO RETIRE EARLY – FOLLOW THESE SIMPLE STEPS!
My objective was to retire earlier than the average American and I reached that goal. BUT, If I had the investment, finance knowledge and COMMON SENSE in my 20’s that I have today, I would have retired MUCH earlier.
MY LESSONS LEARNED:
BUILD YOUR INVESTMENT AND FINANCIAL COMPETENCIES
Every successful individual regardless of their field, did so by outworking the competition. Kobe Bryant, who recently passed away, was an overachiever. He started practice at 5 AM. Kobe was the first and last in the gym and even practiced shooting in the dark.
If you are too lazy to put in the hours to learn and master investing, you are better off gambling at a casino. I did not build my financial literacy and competency in college. I spent hundreds, probably thousands of hours reading, taking workshops, working with mentors. And still I had serious failures. Today, you have billions of pages of knowledge a couple of clicks away. Build your financial literacy and competency in the below subjects and more..
To retire early, effort and persistence matter most.
https://wealthbuildingpowers.com/2018/08/23/increase-your-wealth-by-increasing-your-competencies/
START SAVING AND INVESTING RIGHT NOW DANG IT! I MEAN TODAY!
About 67% of today’s retirees’ biggest regret – they did not start saving EARLY enough. You do not want to be answering that same survey years from now with a regret you can DO SOMETHING ABOUT. Saving EARLY when linked with compounding will multiply your HARD-EARNED MONEY several times. Compounding has grown a savings of tens or hundreds of dollars each week into wealth.
Compounding earns returns on your principle (the dollars you save) as well as any gains you make off that principle. And you do this over and over and over again. Example: Your good-looking Uncle Styron, deposited $10,000 in an S&P 500 ETF on January 2, 2000 and asked you to NEVER touch it until your retirement. Being smart you invested that $10,000 principle in an S&P 500 ETF and it gained ~$36,000, giving you a balance of ~$46,000, as of today. That $10,000 was working for you 24/7; while you slept, ate, worked, etc. If you were age 18 when you received that $10,000, at the age of 50 you would have approximately $129,000 (assuming an average 8% annual return). This is the power of compounding when combined with an early start.
Time matters so get started! If you are just starting to work, PERFET TIMING – START SAVING NOW! As we will discuss below, you MUST keep contributing to your savings and investments {ADDNG MORE HARD-WORKING DOLLARS TO YOUR TEAM}.
https://wealthbuildingpowers.com/2018/02/15/the-magic-of-compound-interest/
THERE IS NO DEBT MORE IMPORTANT THAN PAYING YOURSELF FIRST! EVERY PAY PERIOD!
From your take home pay your goal is to save a MINIMUM of 15% (preferably 20%) into your 401K, and other savings accounts. Your objective, to max out your 401K contribution as early as possible. That 85%, preferably less, remaining, is what you live on until the next pay day.
https://wealthbuildingpowers.com/2019/07/01/create-wealth-by-paying-yourself-first/
https://wealthbuildingpowers.com/2019/06/10/401k-millionaire-club/
LIVE BELOW YOUR MEANS – UNLESS YOUR LAST NAMES IS GATES, BEZOS, CERTAINTLY NOT POWERS – STOP WASTING SO MUCH DAMN MONEY ON CRAP!
Immediate gratification is the killer of accumulation of wealth. Accumulation of wealth is simple: SPEND LESS THAN YOU EARN AND INVEST THE REST! STOP living paycheck to paycheck and maxing out your credit cards. FIRST RECOVERY STEP – STOP BUYING SO MANY WASTES OF MONEY SILLY WANTS. Especially that silly new car! I promise you; Ford and Toyota do NOT need your HARD EARNED DOLLARS. They both make BILLIONS in profits annually, off those without the discipline to invest in their future, versus a fading new car smell.
https://wealthbuildingpowers.com/2019/10/28/stop-destroying-your-life-get-out-of-that-damn-hole/
NEVER EVER INVEST IN ANYTHING YOU DO NOT UNDERSTAND
You will hear lots of pitches by scammers. Because you have invested your time to build your investment education, you will not WASTE YOUR MONEY. When you decide to work with others on an investment, pick subject matter experts. It is not a good idea to hire a butcher to teach you veganism!
IF YOU WANT TO RETIRE EARLY BUY YOUR OWN HOME AND STOP MAKING OTHER PEOPLE WEALTHIER!
If you are paying rent, in most locations, you are better to buy a property, get the tax deductions and potential appreciation. However, if you insist on renting, relocate to Raleigh or Durham NC and rent one of my properties. I am happy to take your HARD EARNED MONEY!
https://wealthbuildingpowers.com/2018/05/24/is-buying-a-home-a-great-good-or-risky-investment-today/
CONCLUSION
Recently Kobe Bryant his daughter Gianna and seven others were killed in a tragic helicopter crash. While Kobe was physically gifted, he became a great basketball player through hard work. He invested in himself and worked harder than everyone to reach his long-term goals. Kobe Bryant was an overachiever and took his work ethic to his post-basketball business and investing life: “Cold-calling entrepreneurs to learn how to achieve business success. After being told by billionaire investor that he needed to “do his homework” about investing, “For the next few months my phone never stops buzzing in the middle of the night,” Sacca said. “It’s Kobe, reading this article, checking out this tweet, following this guy, diving into this TED Talk, diving into the Y Combinator Demo Day stuff. And I’m getting these texts, literally two or three in the morning. In short, Kobe didn’t compare his present self to his past self. He didn’t look back to consider how far he had come. He looked forward, to see how far he could still go. And then he worked hard to get there.”
The reality, the lazy and ignorant will not retire early. You can!
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached and mentored by strong women and men in both my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.
However, I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog, as recommendations for your personal situation. For individual finance advice please seek your own licensed CPA or fiduciary financial advisors.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
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