Retire Early On Any Income

  • If you think you have to start out wealthy to be able to afford early retirement, stop it; you are misinformed.

You can accumulate enough money to retire early if you do what the wealthy do.   Make retirement planning a priority; that’s what the wealthy do.

  • If you think that wealthy people are the only ones who can afford to retire early because they are privy to top-secret retirement planning information, stop it; you are misinformed.

Wealthy people do not have access to top-secret retirement planning information, they have access to the same financial information that you do.  The difference is in their approach to retirement planning.   Wealthy people make retirement planning their#1 priority, and nothing gets in their way.  Their attitude is take no prisoners!!

10 Tips – Financial Habits Of The Wealthy

Your financial habits will determine if you have to work up until the retirement age set by the government or if you can retire early.   Wealthy people follow a different set of financial habits when approach retirement planning; which allows them to retire early & enjoy their retirement years.

Tip #1 – Make It Your Priority

financial tipsPeople who are able to retire early set early retirement as their top goal, their #1 priority.  They do everything they possibly can to achieve it; they cut back on their expenses, stay out of debt, invest as much as possible.

Those who retire early understand that it’s never to early to start investing.  They start saving for retirement when they are young and never look back.  The best time to start saving for your retirement is when you start your first job; the second best time is today.

Tip #2  – Get A Retirement Calculator Estimate

However, invest as much as possible is too weak of an approach for the wealthy; they need a more specific approach.  They use retirement calculators to give them a fairly good estimate of how much money they will need to aim for.

The wealthy want a target dollar amount to strive towards.  They  base their investments on the calculation from the retirement calculator and then save a bit more.   How can you know how much you need to save if you don’t have a target to aim for?

Tip #3 – Pay Yourself First

Paying yourself first simply means investing before spending.  Every time you get paid  save some of it.  Adjust your spending to what is leftover after you have made your retirement plan contribution instead of investing what’s leftover after you spend.

Tip #4 – Do Not Worry About Amount | Just Do It

Do not be concerned about the amount of money you invest into your retirement plan.  If you are consistent in saving, over the long-term your investments will grow.   Wealth accumulation happens one dollar at a time.

Tip #5 – Automate It | Forget About It

You can retire early even if you did not start as wealthy

Image by squeaks2569 via Flickr

The wealthy make investing into their retirement plans easy, they have their contributions automatically deducted from their paycheck.  With automatic investing you do not have to think about that money, you won’t even miss it.  Wealthy people adjust their spending to accommodate their investing.   They spend the money leftover after their investments.

Tip #6 – Invest All Extra’s

Whenever they get a raise, bonus or tax refund, the wealthy do not even think about that money, they just automatically save some of it.   Their lifestyle was fine before they had that extra money, and since they don’t need it to live on, invest it.

Tip #7 – Use Your Time Wisely

Accumulating wealth is not as much about how much money you invest but more about the number of years you have that money invested.  They understand the power of compounding interest.  (Hot tip: compounding has your money working for you at all times.  You earn interest on the interest on the interest).

Tip #8 – Ignore The Chatter

The wealthy ignore the negative chatter they hear in the media and around the office cooler about how bad things are.   This negativity does not influence their investing because they know that markets go down and up and up and down, that’s the nature of the market.  They stay invested regardless of the chatter.

Tip #9 – Avoid The Hotties

Think like the wealthy, ignore the hot stock tips and hot trends.  By the time a hot tip gets to you, unless you know someone on the inside (Hot tip: that would be illegal insider trading), that hot tip is cold.   By the time a hot tip gets posted or published, it’s old news, the wealthy know this and avoid hotties.

Tip#10 – Avoid Debt

Save your money, stay out of debt, debt is a curse.   Debt is expensive and a waste of your money.  In the world of the wealthy, the money they would have to pay on debt interest could be invested.

Here’s an important Hot Tip: Having the privilege of being born into a wealthy family is not your only shot at early retirement.  If you are really serious about early retirement you can do it, if you make it a priority like wealthy people do.   You can develop financial habits like the wealthy, it’s all up to you.