[RETIREMENT PLANNING] 5 KEY PRINCIPLES OF FINANCIAL MANAGEMENT FOR EARLY RETIREMENT
Early retirement at the age of 35 with a huge money amount in the bank account? Here are 5 key principles of financial management for early retirement but many people do not take it into account.
It is not the lottery winning, this is the way for you to retire early with a huge money amount in the bank account.
Right from the age of 35, no longer struggling with 8-hour working at the office, free to do everything you like - from traveling to writing books, playing music, gym - but the money is automatically poured into your account every month.
That is the ideal early retirement prospect, a beautiful dream of many young people who are working today. But is the dream forever just a dream? Is there a way to turn it into reality, other than winning the lottery?
The answer is yes. And here's how:
How can we have early retirement at the age of 35? / ph: pexels@Karolina Grabowska
1- Have a big enough savings
Robert Kiyosaki said in Rich Father Poor Dad that the key to getting rich is not how much money you make, but how much money you can keep.
This is especially true for those who want to retire early. Because you want to retire at the age of 35, you definitely need a big enough savings account, at least a few billion - but this number is still a weak shield against the uncertainties of life.
Between now and the expected retirement age, save as much as you can through strict financial management and unnecessary spending cuts.
The more money you have, the more comfortable your life after retirement will be.
2- Get used to a simple lifestyle
Along with saving money, we also need to learn to live happily with enough resources, no more, no less. Should learn the Lagom thought of the Swedish people: "Knowing enough is happiness".
Ask yourself:
Do we really need a diamond watch, as today's cell phones also have a time function?
Do we need to go to the luxury gym, when exercising at home or in the park still helps to keep the body toned and healthy?
Minimalism is a suitable option for those who want to stop working at the age of 35 to rest and do what they like.
3- Join health insurance
Health insurance is a financial cushion when you or a loved one falls into an unexpected illness, illness or accident. Participation is completely voluntary, with a variety of programs.
People who choose to retire early should not ignore health insurance, because only their savings, even up to a few billion, are easily lost very quickly if they unfortunately have health problems.
4- Invest
The most common way for not working and still have money is to invest.
Investing is making money itself, regardless of the time you spend working (it depends on how you think about where to put the money).
If you do not have the money to invest or do not know anything about it, now is not too late to start.
5- Create passive income streams
For example, if you are a musician, the royalties you receive when someone records or performs a song you compose can be considered a passive income source.
Or the interest you get from the bank when you save is another source of passive income.
Passive income is the income you receive without using your own labor. The more passive income sources you have, the stronger your financial potential will be. Early retirement will be possible.
[RETIREMENT PLANNING] 5 KEY PRINCIPLES OF FINANCIAL MANAGEMENT FOR EARLY RETIREMENT
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