Do you dream to say Sayonara to your daily 9-to-5 schedule?
Do you dream to see the world before you actually turn 60?
How do you plan to fulfil 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. After considering these good things, 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:
- Systematic Investment Plan (SIP): For your regular savings-investment from your salary.
- Systematic Transfer Plan (STP): For any Lumpsum amount you get in a short time.
- Systematic Withdrawal Plan (SWP): To transfer your retirement corpus to a low risk investment instrument as you near your planned early retirement. It can also be used to get your regular post-retirement income.
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- changing difference worth applying. The formula for financial success will work, only if you have a plan of action.
A plan that goes from alpha to omega in early retirement.
A plan that will leave no stones unturned.
Fortunately, we have a guide that you can use to plan your early retirement in India.
Read “How to Plan For Your Early Retirement In India?”
It is a plan that considers all the possible setbacks you might face since early retirement in India is still a new concept.
Like any other customised retirement plan it covers all the bases. Starting from finding out your retirement expenses to calculating the retirement corpus amount to feed the long retirement life.
And finally, it also guides you through areas where you can improvise money strategies to reach your early retirement in India as planned.
You may also make use of our early retirement calculator: Download here!
2. Lifestyle
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?
Our lifestyle, through our subconscious mind affects our money decisions to a much greater extent than we think. But it is not a dead-end.
You can work your way around to make the right financial decision every single time to accumulate your early retirement corpus in time.
Read: “6 Powerful Points to Make The Right Financial & Investment Decision Every Time”
Make use of these 6 point to make the best financial decisions real quick.
3. Investment
Do you know what influences how much you earn?
A golden rule says ‘Learn before you can actually earn’.
Always remember that acquiring good amount of knowledge will always be a profitable asset for your bright financial future.
Whether you are a beginner or a seasoned investor, the mantra to disciplined investing is just three things:
Read more about this in detail here: “How To Build Your Retirement Corpus Using Mutual Funds?”
4. Early Start
Procrastination, or delay, is like a wealth suicide on your investment plan, where an opportunity is buried.
Should you let this suspension demon prevent you from retiring early?
The saying is “Rome was not built in a day”.
But if Caesar had said “We’ll start to build Rome tomorrow” every day, there would never have been a Rome. Lay the first foundation stone today and now!
Retirement is a big goal, early retirement is the biggest there is in an individual’s life.The earlier you start, the easier will be the process to gain traction. Start today and now.
5. Automation
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, is responsible for doing so?
Get into the commanding position of your personal finance and stay there. 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
Retirement, as stated before, is a very long and big financial goal. If you are going to do it dive in head first.
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.It will literally payback what you pay it today, but it many fold.
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.
If you have any comments or questions, write them in the comment box below.
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