Yes, you read it right - "I want to retire young." People have different views on retirement. When Money Smarts blogged about retiring young, readers have expressed different opinions.
I define retirement as getting out of regular employment. But that doesn't mean I'll be a bumming around or I'll bore myself doing household chores after I stop working. In fact, I was thinking, if I quit my job then I'll be able to supervise a maid (hehehehehehe!!!!).
Kidding aside, I want to retire young, enjoy life and spend more time with my family. I want to visit more places and do things that I also enjoy (apart from my regular job) but I couldn't do because of my full time job. I love my job but I don't want to be tied-up with an 8-5 job for the rest of my life. I want to pursue other endeavours totally different from going to the office everyday. For example, I want to blog, blog, blog! I want to read more (for leisure), bake different pastries and do photography (as a hobby). Who knows, I might just become a great cake decorator or perhaps a wedding coordinator? Wouldn't it be great not to worry about your boss, deadlines, clients, etc?
Actually, I can quit working now and just stay home because my husband has the financial capability to support me and our future children. But being a woman of today, I also wanted to become financially independent. In fact, my goal is to gain financial independence before I get out of 8-5 job. I set a time-frame of 10-15 years (or possibly earlier) to attain this goal. So what are the steps I am taking to achieve financial independence?
- Set a clear goal that is attainable within a set time-frame.
- Stay out of debt.
- Prepare a budget and spend within the budget.
- Save, save, save!!! According to the experts, Expenses = Income - Savings and ideally, 10% of our income must be saved.
- Establish an emergency fund for emergency expenses such as car repairs, sickness, etc.
- Do not spend more than what you earn.
- Do not buy things that depreciate in value because you
- Buy only what you need (I'm guilty of buying unnecessary things!)
- Try to be frugal but not cheap - they are different
- Invest, invest, invest!!! Before careful though, you have to research well before you invest your hard-earned money.
- Read personal finance blogs. You can learn a lot from personal finance blogs. They are free so start reading now. Some of my favorites are in my side bar.
- Read personal finance books. It's good to start with a book that is written by a Filipino author because their contents are tailored to Philippine setting. I've read those written by Francisco J. Colayco and Efren Cruz. They are simple and easy to understand. They are also eye-opener especially for those who are clueless about personal finance.
Sounds too good to be true? The things I mentioned are doable but one must have a strong determination and will-power to make it happen.
Last August, I challenge myself not to shop for a year as a way to save some money. So far, I think I'm keeping up with my own challenge. After my shopping spree in New York and in the Philippines, I think I can skip buying clothes, shoes, and bags for at least one year.
I guess, if I try harder, I can achieve my goal in less than 10 years.
The opinions expressed here are entirely my own. The views and opinions expressed by visitors of this blog are theirs and do not necessarily reflect mine.