The WHY: Every success starts with the strong reason why. Why do we want to retire early? The strong reason should not be just money. A strong reason needs to be associated with emotion. When we have money, we can buy time. We can buy what our family members need. Researches have shown that people with strong reason will succeed better than people who don’t know the reason why they want to do something.
The logic behind this is that what we want to achieve is beyond our comfort zone. Mostly, we need to do something different from what we are currently doing. If we don’t have a strong reason, we will easily fall back to our old self. Retire early can help us have more time. Time is powerful, when we have time, we can sleep more, we can network and build relationship with people we care, we can do what we love to do, we can help others who need. Many are not aware that when we have time, we can also build our wealth to a greater level. If you survey around, the richest people mostly have more time for themselves. We should not be stuck by being busy and not able to get the wealth that we need.
The WHEN: If someone is offering you a million Ringgit with no strings attached, do you want it now or next year? Obviously, the answer is NOW. We need to act now for the planning to retire early, not tomorrow, not next year. Marianne Williamson quoted this before:
Our deepest fear is not that we are inadequate.
Our deepest fear is that we are powerful beyond measure.
It is our light, not our darkness, that most frightens us.
We ask ourselves, who am I to be brilliant, gorgeous, talented, fabulous?
Actually, who are you not to be?
Understand who and what are stopping us from taking action now to retiring early. Makes our dream come true by doing something now.
The HOW and the WHAT: the how is actually the least important on early retirement. We just figure out the WHAT, the HOW will surface. To retire early, these are the following simple WHATs:-
- Save everyday, have sufficient emergency fund for rainy days (3-6 monthly expenses)
- Invest the rest
You might be surprised how simple is the WHAT. In order to save more, the how is to spend wisely and plan wisely on cash outflow. In order to invest, the how is to understand how each type of investment works, understand the objective of the investment and to determine the right investment strategies. The initial investment strategy shall focus more on capital gain because our starting capital is lesser. When it is growing to the required amount, it is time to switch to investments that can offer consistent dividend return, rental return that can help to offset the retirement expenses. Learning the investment risk management is also important to make us win in investment most of the time.
You can receive constant broadcast message relating to wealth creation to financial freedom through Telegram. Click here to subscribe to the telegram for the weekly newsletter.