In the past, retirement means working for a company for 30 to 40 years and then getting a pension after you retire by 65. This way, you will have enough money to sustain your golden years.
Now, more and more people are getting into entrepreneurship, follow their passions, and come up with their own strategies. Self-funding retirement might be intimidating for most people.
But if you want to retire young and still have the same money that people who retire late get, here are some things you should do while you are still young:
- Pair up with the right partner. Having the right partner in life can help you get inspired and organized on your goals. Getting married or partnering with the right person is not a bad idea, if you aim to develop each other. Make sure you have a purposeful partnership. Otherwise, you will fall apart and get divorced, which is more expensive.
- Be conscious when establishing your own family. Unwanted pregnancy may turn your entire financial life around. It can be emotionally challenging as well. You might not even last wrong with the person you got pregnant with. If you do establish a family and plan it out with the person you’ve been with for a long time, it is best to have a small family. If you can manage it, don’t be an at-home mom taking care of your child full time for over three years. You will miss a lot of earning potential that way.
- Live in a lower cost area. There are more and more people are wise enough to leave the big cities and head to the small towns, where life sustenance is cheaper.
- Don’t keep up with the Joneses. This will make you spend money you don’t have for things you don’t need.
- Take calculated risk when you invest. Diversify your investments.
- Save for the rainy days.