A lot of us dream of retiring at an early age - the earlier the better. More often than not, it's an established irony in life that the young will have little money to spend but a lot of youthful energy, and the old will have enough money to enjoy life but often won't have the strength to do the things they might have once wanted to. In either case, you have a miserable imbalance of financial capacity versus personal vigor.
Now, a lot of young to middle aged people dream of retirement; a freedom from responsibility and work, yet with enough money to be able to live their lives in comfort. For most people, it remains a dream and nothing more. Still, there have been a few people lucky and skilled enough to enjoy early retirements in their youth to early middle age, and here are some sage pieces of advice that may help you do the same.
Don't Rely On Luck/Divine Providence - this definitely won't work. There's no need to spit on luck, since it definitely helps, but no matter how lucky you are, the moment you start relying on luck to give you something vital, like a million dollar deal, then often that's when it will turn sour, and usually in the worst way possible. If you're born lucky then be thankful, but keep relying on your own brains and muscle to get by.
Use everything you've got - for some reason or another, some people are squeamish or reluctant to use a resource they have. For example, some kids from well to do families turn their backs on their families in pride, wanting to "make it" on their own. Consider that anything and everything is a tool towards building your future, from your intellect and skills to your family and friends. This does not mean become a "user"; rather, it simply means that if you have something on hand that can be applied to solving a problem and making your life easier and better, it would be both foolishness and a waste not to use it.
Save Up and Spend Wisely - this is the biggest mistake of the youth. Wether it is due to peer pressure, curiosity, or mass media influence, kids will usually wind up buying things that they don't really need. There's nothing wrong with hobbies, but if you blow 90 percent of your monthly paycheck on comics or your car, then you'll be hurting a few years down the road. Keep expenditures in moderation and save up a lot. Don't be a miser however; spend on things which will give you a good return on investment down the road; land rarely depreciates, and is a good example of this. As for savings, bank time deposit accounts give higher interest rates than regular accounts, and are good ways to regulate your expenditure too.
Develop a Self Sustaining Business - this is one of the best ways to retire early, if you can pull it off. Some businesses are so in demand, yet have low overhead costs and require little effort, that once they gain momentum you can lean back and just check on it periodically and it will still run like clockwork. One example of this is network marketing. While some ARE scams, the legitimate ones work wonders once you get them going, and can keep high volumes of income going while requiring very little input.
Developing good money habits at a young age will help you avoid the stress associated with financial concerns. As you have read, many people are experiencing major debt problems. Statistics show that people are spending more than they make. That's why in order for you to secure your financial future you must become a young money rebel.
A Money Rebel defined.
Young (adjective yung) - being in an early period of life or growth.
Money (adjective muhn-ee) - legal tender.
Rebel (noun reb-uhl) ' a person that exhibits independence in thought and action.
The need to be a young money rebel.
The latest reports show that the average person today is in poor financial shape. They may not be going bankrupt or having their home foreclosed on just yet; however during these uncertain economic times with rising oil prices and the problems in the credit market many people are barely getting by.
Unfortunately many people are living paycheck to paycheck, are experiencing the stress associated with debt and are often struggling to get out of grim financial circumstances. Most of these same people share a similar goal ' to experience financial freedom - but fall into the traps plaguing so many people as shown in the examples below.
-62% of graduates expect to have a student loan debt averaging $27,236 ($101 billion nationally) and requiring 7.9 years to pay off. (Student Monitor)
-The American public has been spending more money than it has earned after taxes since April 2005. (U.S. Commerce Department)
-Some 40 percent of Americans are counting on the lottery, sweepstakes, getting married, or an inheritance to fund their retirement. (Were Not In Kansas Anymore)
-Household debt in 2007 is at record high levels relative to disposable income. (Federal Reserve)
-Polls show that students (ages 15-21) feel unprepared to face the complex world of the 21st Century (American Dream Education Campaign)
Young money rebels avoid those traps.
Young money rebels, on the other hand, are able to avoid debt traps, have money saved and are able to experience the feeling of financial security at a young age. They enjoy life on their terms now plus they are able to retire young.
Young money rebels are independent thinkers and avoid the financial traps so many people are currently in. They have a working budget, keep their spending in check, are knowledgeable about personal finance, and follow a consist investment plan.
A young money rebel understands that by investing at an early age they have a huge advantage. Young money rebels have an advantage. That advantage is called compounding intrest and it is working in their favor. With compounding interest the earlier you start investing, the greater potential growth of your money. That is why investing just $100 a month starting at age 18, and earning the S&P 500 average return, will make you a millionaire well before retirement age.
Young money rebels retire young.
Anyone looking to achieve financial freedom should become a young money rebel. This will give you more free time, the ability to live the lifestyle of your dreams and avoid the stress associated with living like most people do ' with financial worries and stress.
Today it is more important than ever you do achieve financial freedom. The large reduction in pension plans and the uncertainty of social security means that young adults today will need to be prepared to self fund their own retirement. You will need to save and invest your own money because the programs benefiting our parents will not be around when we retire.
How to become a young money rebel.
There are simple steps you can take to fully enjoying life by securing your financial future at a young age. Follow the six steps below to become a young money rebel.
1) Educate yourself. Most schools do not teach practical money skills so it is up to you. Fortunatly, today there are many resources available for anyone looking to improve their financial situation. Invest a half hour each night to learning about money and you will be well on your way to achieving financial security.
2) Financial goals. What motivates you? Is it a big home steps away from the beach, a year off to travel the world or is it just having enough free time to spend with loved ones? It is your choice how you want to live life; so take some time to think about it. You may not know exactly what you want but you probably will have a general idea. So write down financial goals that will encourage you to achieve your dreams.
3) Team. Building a team of trusted advisors will be an important part in achieving success as a young money rebel. Your team should include a trusted tax advisor, financial mentor, and personal growth coaches.
4) Financial plan. Develop a step-by-step financial plan so you can achieve your life goals. Write down how much you are going to save each month, where you will invest your money and your desired results.
5) Saving. A savings plan is the backbone to your financial success; so start immediately. Talk to your bank about automating your savings plan so every time you deposit money a portion of that is automatically transferred to your savings account.
6) Investing consistency. A consistent investing plan will lead to long-term wealth and financial freedom. Just like your savings plan you can automate your investments so they are made automatically for every month. Set it up once then it automatically works for you. Just make sure to check your statement on a regular basis.
Just by following practical financial literacy skill you will be on your way to becoming a young money rebel and that much closer to living your dream life.
Both Mabel Ang & Vince Shorb are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mabel Ang has sinced written about articles on various topics from Home Based Business, Affiliate Programs and Home Businesses. Mabellyn Ang is a Internet Expert and Working from Home and making an attractive online full time income. She wish to share with you how to succeed online and Lead a Debt free life ? Click. Mabel Ang's top article generates over 12100 views. to your Favourites.
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