Tag Archives: retirement

Don’t retire early

Every now and then when I talk to people about this blog and the idea of early retirement, the positive people would maybe excited for about 5 seconds before they told me it is impossible to achieve early retirement in our generation. Actually, if their idea of retirement meant inactivity or doing nothing at all, they are almost correct. Because even thought I haven’t achieve the financial side of freedom to early retirement, I knew that even I manage to get my investment to support my expense in future, I won’t be sitting around doing nothing either.

I am 32 years old this years, let say I get my investment up and running to support me financially in 10 years time, I will be 42 years. By then I am still relatively young in the society, and I will have much more knowledge and energy to serve the society so I don’t think I will be sitting around at home and reading newspaper and watching TV all day long. The thing is the definition of retirement in today world should change, it should not means inactivity or expiry of a person, it should be a member of society gain his time freedom to pursue important things in his life. It could be his family, traveling plan, social activity, his job(yes, there are people love their job and doesn’t celebrate every Friday and blue every Monday) or just serving his community.

Also, I think early retirement or not, we all on the journey of  life. Even you think you are going to work for a much longer time because some choices you made in the past, there is nothing to be sad about. We all have our own way to contribute to this society, some of us done it with our job, some of us volunteer, some of us run a business to provide goods and services and some of us taking care of our family. It doesn’t means that early retiree is better than you because they can retire earlier than you, it simply means that they made the decision earlier and decided to make it works for them.

There are sacrifice to make, things to set aside, events to miss in this journey. You are the only one can answer whether are all this effort worth it? Are you really ready to commit to this goal? Remember, it is not only the big ticket item you need to be mindful, you have to be really looking all area of your life to make it works.

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Filed under Passive Income, Personal Development

3 Mistakes That Delay Your Retirement

I define retirement not as a period when I just lying on the bed all day long and do nothing. I believe with enough financial resource to support our daily expense, we can perform even better in our daily job and other activities that interest us.

However, there are some common mistakes I believed we all made before that delay our retirement:

1. Never Take The Time To Plan Your Retirement
Modern people are busy people. We all have our own commitment that need our attention everyday. It could be childcare, house work, project at work or a whole day meeting and conference call. By the time we reach home, we are exhausted and financial planning (thinking) is the last thing on mind. We just want to lie down in the sofa and continue the show from last night. TV is not all evil if we know how to enjoy it, but if we start to spend few hours a day on it and ignore the more important but not urgent matter like planning for future, it does not sounds like a good deal to me.

2. Never Seek Help
As the society and industry getting more and more complicated, it is not practical if we try to do everything by ourselves. It is important for us to learn more life skill to reduce expense but sometime advice from experienced people can be priceless. Seeking advice from people who has done what you are planning to do is a shortcut to achieve what you want.

3. Never Take It Seriously
I must say this is the single most important success factor in whatever we want to do in life. There is no need to strictly restrict every pleasure in your life when you are on your way to retirement but you have to take it seriously after you decided your plan. Every effort should be made to cut down on your expense, learn how to increase your income, find a free hobby or even communicate your thinking to your spouse.

I believed there are people managed to retire early even when they made all these mistakes above but they should be considered as exception rather than rules. For the rest of us, the room for mistake would be much smaller and a thought through plan is definitely helpful here.

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How To Protect Your Early Retirement Dream

You are now only your journey to achieve your early retirement in 5/7/9 year time, but you have one major obstacle to overcome your journey ever started. It is the objection/confusion shown by your family or you’re the other half. They don’t understand your dream, and they don’t believe you can make it. So, what do you do now?

 

Firm Message, Strong Belief

I won’t lie to you; it is a challenge to me too. A firm message and a strong belief are definitely needed when you want to communicate this idea to them. Tell them why are you doing this, why the change of lifestyle choice (I tried hard to avoid using the word sacrifice) today will leads to better/free future tomorrow. I am lucky, I was born into a poor family and the idea of frugal was introduced to me since small. I have been trained by the environment since small to find ways to obtain toy I like to have, food I wanted to eat and game I wanted to play. Small business like selling tidbit, stationery and food funded most of my entertainment cost and snack cost during that period of my life.

It took me a very long time to realize freedom is not something granted to you by parent, government, or ever god, it is something you need to work very hard to get it. Whenever you feel down like me sometimes, you have to know your purpose of doing what are you doing right now. A wealthy man is shaped one dollar at one time, if you don’t respect the one dollars coin in your hand, it won’t respect you too and will leave you the moment he got his chance. And this is also why I always grateful and happy if I found any little coin lying on the floor waiting for me.

 

Frequent Reminder

Ok, back to protecting your dream. I think one of the good ways is remind yourself frequently on this goal. You can try doing what I am doing right now to achieve this, starting a blog, writing something about early retirement every few day, at the same time you can learn more about the action you need to take if you want to retire early.

 

Proper Communication

Second, communicate to party that affected by your decision (normally is your family) your intention and the reason why you are doing this. Most of the people are not familiar of the idea of early retirement, especially for our previous generation. In fact, it is more difficult for them to achieve early retirement in their time because the lack of investment tool and education in their time. So you might need to take some time to formulate what are the message are you going to convey to them. Don’t be surprise when they react overly when you say you are planning to retire/stop paid work completely after 5/7/9 years. This is almost unheard of even in our time, so it will take some time for the ideas to sink into them.

 

Take Action

I don’t know about you, but I disappointed my family and friends many time when I failed to kept my promise or I didn’t complete what I am supposed to complete. It does not feel very good to break a promise and lose your credibility. Over the year, it costs me many broken friendship and tension in the family. So, if you are serious in this journey, taking action is important. Showing your seriousness is important. It is not very convincing to your family and friend that you are truly committed to retire early but you spend your money like nobody business and the tomorrow will never come.

Start taking some small action; track the flow of your spending should be the first step. Check what are the areas you can improve on, make decision on whether to clear your debt first or invest for return first. There are a lot of things to learn here, small little thing that helps you save a few bucks, bigger decision that save you thousand of dollars, choice that you make that make you money and so much more.

 

So, welcome to this exciting journey and I hope we will have a happy ride to the end. Hope to see you guy there!

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Filed under Personal Development