If I tell you that you can retire by the age of 40, what will be your reaction?
That sounds too good to be true!
Not anymore…
Early retirement is achievable if we start working on it from the beginning. It’s never too early to start planning for it and the earlier you start right after college or university the earlier you can retire.
Not only does it allow us to enjoy life as we wish to, rather early retirement planning is also one of the critical steps to achieve financial freedom. It implies a lot of work and diverse aspects to be considered.
This article deals with the basics of early retirement planning in some simple steps. If you don’t want to struggle with your finances till old age, read on and discover the formula to successful financial freedom.
1. Set your goals
First of all, you need to know what kind of lifestyle you want for retirement i.e. your goal. Write your needs on paper and rank them as either absolutely necessary, important or least important.
2. Decide the future financial target
Based on the desired retirement lifestyle, project the required expenditure on paper. This helps in making an accurate estimate of your financial growth and objectives.
3. Conduct financial inventory
Assess your current financial situation by doing an inventory count of what you have today. A financial inventory is simply a list of what you have and where you have it. This includes your assets, liabilities, net worth, income, expenses and net income or savings.
4. Evaluate progress
Once you have made estimates for all the above figures and started implementing the plan, its time to map out your actions and keep track of your progress. You can take help from a financial planner for this.
Thursday, April 10, 2008
Tuesday, April 1, 2008
Feel The Power Of Financial Freedom
I often hear people using the word ‘freedom’ and find myself wondering if they really understand what being free really feels like.
It’s not about what others tell you that you can or cannot do. Freedom is about having the options for a solution to diverse situations. It’s entirely your decision to take any of the ways. Learning to recognize the right options and avoiding the ineffective ones is key to developing financial freedom for yourself.
Letting go of false, rigid expectations and evolving realistic ones can be a major step towards your freedom. It’s just a matter of your mindset and attitude. Not just recognition but also proper handling of opportunities is essential for attaining financial independence. You MUST be ready to take the consequences, be it good or bad, in a positive manner.
Even before that, you need to be sure of what you actually want. Make a plan and be prepared to make changes as and when required. Open your mind to the vast range of possibilities around you. Sticking to a single, rigid plan will not get you anywhere. This is a mistake that most people make. They limit themselves to one or two options and never give a chance to the various other alternatives.
A good example of this rigidity is the difficulty we face when contemplating to leave a job. A good job is believed to be the only or at least the best way to achieve financial freedom. If you want to make more money, find a better paying job. So, it goes on without anyone thinking how limited they have become.
The sad part is that most people recognize the different opportunities to gain financial freedom but prefer to remain in familiar territory. It’s not bad to take a calculated risk. If you want to chase your dreams, learn to step out of the boundaries of a secure job and long set notions.
When you break free, you will come to know that financial freedom is not a far fetched dream but a reality that can be yours in no time. Set your goals and start working towards them diligently. Then, you will feel the power of financial freedom!
It’s not about what others tell you that you can or cannot do. Freedom is about having the options for a solution to diverse situations. It’s entirely your decision to take any of the ways. Learning to recognize the right options and avoiding the ineffective ones is key to developing financial freedom for yourself.
Letting go of false, rigid expectations and evolving realistic ones can be a major step towards your freedom. It’s just a matter of your mindset and attitude. Not just recognition but also proper handling of opportunities is essential for attaining financial independence. You MUST be ready to take the consequences, be it good or bad, in a positive manner.
Even before that, you need to be sure of what you actually want. Make a plan and be prepared to make changes as and when required. Open your mind to the vast range of possibilities around you. Sticking to a single, rigid plan will not get you anywhere. This is a mistake that most people make. They limit themselves to one or two options and never give a chance to the various other alternatives.
A good example of this rigidity is the difficulty we face when contemplating to leave a job. A good job is believed to be the only or at least the best way to achieve financial freedom. If you want to make more money, find a better paying job. So, it goes on without anyone thinking how limited they have become.
The sad part is that most people recognize the different opportunities to gain financial freedom but prefer to remain in familiar territory. It’s not bad to take a calculated risk. If you want to chase your dreams, learn to step out of the boundaries of a secure job and long set notions.
When you break free, you will come to know that financial freedom is not a far fetched dream but a reality that can be yours in no time. Set your goals and start working towards them diligently. Then, you will feel the power of financial freedom!
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