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If you are thrown with a question like
this: Which do you like more, weekdays or weekends? What would be your
answer? 9 out of 10 people would prefer weekends to weekdays for one
simple reason: they can stay out of work. That is why many people find
ways to retire early, so they can enjoy the most out of life.
However, not many actually achieve that,
even though lots of formulas out there which can help an individual to
retire young and retire rich. The key is, are you persistent enough? Do
you have the perseverance to carry out your plans? If your answers are
positive, to retire early is not a dream any more.
Retire Early and Retire
Rich
Here are some tips on how you can retire
early and retire rich:
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Plan it out. This is the first
important step you need to do. Nobody can succeed without a plan. Write
it out on when you want to retire. Find out how many years left from
now. Ask yourself if your current income possible to get you there at
that particular age. If not, identify ways to increase your source of
income.
-
Save adequately, invest early. It
is not how much you earn that matters the most, it is how much you save
that does. Save enough to keep your
liquidity ratio at optimum level. Invest the residue amount. Invest
early, so that the compounding effects may work for you. Any investment
vehicle that pays average annual return of 7% will double up your money
in 10 years.
-
Stay out of non-mortgage debt.
This is where your money is 'stolen' without your alert. Generally,
non-mortgage debt, namely car loan, personal loan, credit card debt etc
are all non-productive debt. They eat up your fund.
-
Insure yourself adequately. No
matter how large your nest egg is, you are always expose to risks.
Protect yourself with enough insurance coverage. In case of any
unexpected events, namely health problems, your plan to retire young
will not be significantly affected.
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