How to Retire Before You Hit 50 – Introduction
Retirement is something many young people hate to talk about. They even hate to think about it. They assume that they have a long way to go before they start thinking about it. The truth is that the earlier you start thinking about retirement, the better it will be for you. If you start thinking about retiring before you hit 30, chances are that you will have a better life in retirement than the person who starts thinking about it when they are 40. The earlier you start all this, the better it will be for you. Being a trader and an investor is one way of retiring before you turn 50.
- Start early
If you want to retire before you hit 50, you need to start trading and investing early. Starting early has its advantages. For example, if you start when you are 25 years old, chances are that you don’t have a family. You also don’t have many people looking up to you. Therefore, if the worst happens and you lose all your money, you won’t have anyone blaming you. Also, at this age, you can easily start over again and get a job. Therefore, if you want to retire early in your life, you should start trading and investing early in life.
- Combine trading and investing
I have seen people who specialize only on trading. Others specialize on investing. The fact is that you are better when you combine the two. If you are successful, your trading account will make you more money than the investment account. However, your investment account will give you peace of mind. The investment account should have high quality, dividend paying stocks and secure bonds. The idea here is to have a diversified portfolio that will gain in time and one that will continually add more money to your portfolio through capital gains and dividends.
- Spend carefully
As a young person, you want to have the best house in your neighborhood. You want to travel the world and have the best cars. While this is good, chances are that it will lead you to financial ruin in the long-term. The fact is that you should always spend less money than you make. You should also avoid buying things that you don’t need. For example, you don’t need a 10-bedroom house. You also don’t need ten expensive cars. These will only increase the amount of money that you spend.
- Avoid complacency
You should avoid complacency at all costs. If you want to retire early, you need to work hard in your youth and avoid relaxing just because you have made it. Complacency has led many people to financial ruin without even realizing it. The truth is that you should continue to work hard even after achieving success. When you hit 50 and have everything you will ever need, you can now travel the world and do all the things you avoided in your youth. Trust me, there is no better feeling when you know that your children will go to the best schools, live in the best homes, and have the best things in life.
So, the secret to retiring early in your life is to start early. In everything that you do, remember to avoid complacency. Always, you should look at your goal and ignore your peers who are living large. They will envy you when you start living large too.