3 steps to early retirement
Be disciplined and save every month
It’s just that simple! Decide on an amount of money that you can realistically put away every month regardless of what is happening in your life. Be disciplined and don’t let things like weddings, birthdays, or holidays stop you from saving. Once you find an amount that works for you, stick with it and start as early as possible. The people who succeed are the ones who started first.
Expert Tip: Do not underestimate the power of starting early. Here’s an example of what a difference time makes to someone who saves $500 per month at 5% interest:
Set realistic and achievable goals
Look at where you are in your life and where you would like to be in the future. What age would you like to retire and what income would you like when you get there? Once you have set your goals, work backwards and see how much you will need to save every month. If the amount you need to save is unrealistic, then change your retirement age or desired income.
Expert Tip: Treat your savings like a diet; results won’t happen overnight and make sure you still enjoy life. Create a budget that allows you to save but also treat yourself with nights out, shopping and holidays.
Invest your savings sensibly
If it looks too good to be true, it’s usually best to avoid it. There is no magic investment that will make you millions overnight, so have realistic expectations for your investment returns. Don’t sign up to long-term accounts and always check what charges you are paying. Only invest in plans that you fully understand and stay away from exotic investments like wine, art, plantations, litigation, etc. Trust in the financial markets and spread your money across a broad range of equities, like the S&P 500.
Expert Tip: Unless you are a professional investor, seek the advice of an expert. Read my article on how to select a financial advisor here.
Can I help?
For the past 15 years I have helped expats in Asia successful save for their future. Knowing where to start can often be the hardest thing, so contact me today and I’ll use all my years of experience to help you achieve your goals.