Recommendations from Millionaire, who retired 35 years old by saving 70 percent of his income

Recommendations from Millionaire, who retired 35 years old by saving 70 percent of his income

'' In 2016, after saving nearly 1 million dollars, I quit my job in software development and retired at the age of 35. A few months later, my wife Courtney retired. Generally, no one can retire in their 30s, but achieving financial freedom is a good goal for everyone. It may not be easy, but you don't have to be a money genius to reach that location. Nobody wants to feel upset for the rest of their lives. Therefore, although the goal is not just early retirement, there are things we all need to do in order to become rich. These six recommendations are the most basic principles that will give you financial freedom ...

1. Your First Goal Is Financial Freedom

The first rule is the most important and is not about money. This is about wanting to achieve a goal so important as to be your primary goal. I was getting quite a lot of salaries then and I was good at work. I did not like being the boss, participating in the reviews. Meetings, office conflicts and long journeys were tiring. I wanted to travel the world, leaving life from 9 to 5. So, in the late 20s, I decided to make early retirement my primary goal. I focused on making changes in my financial habits. I invested more than letting my money stand idle. I also started to save 70 percent of my income. It was difficult at first, but I realized that every expense I make to myself is something I either don't use or need. None of the changes I made felt like a sacrifice, because I knew they were all supporting my purpose.

2. Continue to Increase Your Income Actively

Although I saw that my income was six figur, I was thinking about how I could use my skills to actively increase my income when I was not in the office. I built a financial site and constantly wrote on it. Finally, I was earning an average of $ 1000 a month on the site. Courtney and I started a YouTube channel documenting our travels. This enabled us to earn $ 400- $ 500 a month. In my spare time, I earned a few extra dollars with free writing. But I was still working hard in my daily business because that was my main source of income. I wanted to show my boss why I deserve a 10 percent or 15 hike (which I bought twice when I asked for it). In the middle of my career, I had increased my courage enough to ask for a big promotion. I was the person who became the director four months later.

3. Invest in Valuable Assets

Saving money, raising money and doing it alone doesn't help you retire faster. Courtney and I invested most of our wealth by valuing assets such as stock exchanges, real estate, business, or historical objects. The idea behind this is: You buy an asset for a certain price. Over time, it increases asset value and becomes more valuable than what it paid for before. But the magic is that, thanks to the compound interest power, our assets are not just built linearly. Instead, it increases exponentially into valued assets.

4. Automate

Many employers offer retirement plans, and most companies automatically contribute from your paycheck to your investment accounts. Courtney and I used it fullest. We automatically contributed to our 401 (k) and IRA accounts, transferred our salaries to the money we accumulated automatically, and paid our credit card bills automatically. Automation will make your life much easier. Because paying bills is the easiest way to avoid late fees, interest fees, or decreases in your credit score.

5. Calculate Your Money

One of the most effective ways to eliminate debt is to know exactly where your money is going. Every penny is important. This is a basic principle, but many people lack the discipline to sit down once a month and review their spending. A few simple transactions can make a big difference in your financial situation. For example, instead of throwing the bills aside, look at them. Leave entertainment expenses to the period after retirement. Carefully examine even small spending. These are the most important principles for achieving your goal.

6. Avoid Things You Don't Need

I had a supercharged Corvette Convertible and a Cadillac CTS. I was also riding the Yamaha R1 sports bike in the city and paying $ 150 a month for insurance. But after I made early retirement a target, I sold it all. Courtney and I now live a very frugal life and we are very happy. We spend only $ 50 a month on restaurants. We buy new clothes at most twice a year. We only change our phones when it is completely broken. You don't have to cut everything down. To achieve the goal, you should only consider the priorities. ''