Do you want retirement by 40 with financial freedom?
This is for the person who has started his career or in his thirties,
i know each one of you will be interested to say Yes, but barred by current loan commitments and by looking at future commitments.
“ If you really want to do something. You will find a way.
If you don’t, you will find an excuse “
This is the interesting quote by Jim rohn, The very step in getting into retirement is not just the thought or desire alone, steps to achieve that, or else it will be ‘anyway resolution’ which will go off. New year resolution for many be there for a week, but this anyway resolution will go off within a moment when reality its hard.
Current Reality ;
Let us look at the reality which hits hard after the thought or desire of retiring by 40 comes up,
The very step which may stop you may be that you are not earning that much while comparing yourself with CEO’s of Global Multi National companies.
Most of you have the home loan EMI’s and other personal & car loans which may stop you from thinking further about retirement itself. Further by now, you have the desire to travel a lot and owning up a car. All these require money and you may not be able to continue in the future, right ?
Above all, you are in a comfort zone of having job and getting a salary on a monthly basis, once you retire by 40 there will not be any income which will be the real need after 40 till you die. You may have a family to look after.
Steps to retirement by 40 ;
Understanding and believing yourself is the first step in achieving whatever you are doing. It is wonderfully stated by Jim Rohn,
‘If you will change, everything will change for you ‘
If you are doing the same thing till now and need different result it is not possible. Be the change you are in and then accept it whole heartedly.
If you want to retire by 40, one thing you need to do by now is “Start Investing” for this financial goal. You cant invest without understanding your current life stake and where you need to go, follow the below steps in achieving true “financial independence” and retire by 40
1) Assessing Current reality
2) Your need after 40
3) Your family need
4) What after 40 ?
Assessing Current reality ;
You may be in 20’s or 30’s, understand the current reality of your life. If you have family, understand the need of your family and of your dependents. It is nothing but how much you are earning and spending every month and out of it what is the unwanted expense if any ?
There was my friend who says, he has everything in his mind and feel stresses out. He has huge loans and he earns a lot, but the loans alone make him feel stressful. Made him to put everything on paper, now he is clear on when he will be able to close out the loans and how to start investing now for his future.
Your need after 40;
By now you are clear with your life situations and your way of living life. Most of our parents had the desire of enjoying life after their retirement, what about you ?, if you are enjoying now itself, how about in the retirement ?
After retirement, there may not be much of income and you need to plan for these needs now itself so that you may not be bogged down by the future needs.
Identify current Monthly expense ; X
(Generally expense doubles once in 8 or 9 years)
Identify Monthly expense you may incur when you turn 40 :
Amount you required till 70 i.e for 30 years :
(considering 70 as the average age)
Your family needs;
You would have planned to live outside the main city in a peaceful place and live meagerly in a village, but your family may not be ready to leave with you. Try to understand your family needs as well before retiring. By this age your kids would have grown up and their desire would have changed which may need your support and your life partner would have started new business which you need to support financially.
This is one of the crucial thing to do before retiring.
Amount required for your kids higher education :
(Generally education expense doubles once in 7 or 8 years)
Amount required for their marriage :
Amount required for your Life partner :
What after 40 ( Retirement period ) ?
Human mind is the most dangerous thing in the world when left alone. You would have retired based on seeing something or believing something, after retirement what do you want to do ?
Do you have plans to do anything for yourself or for the society ?
Reason being everyone else may be doing something and you feel left out by your family and surrounding. If you have seriously decided to retire by 40, think about one thing you will do after 40 ? It may be new job, imparting skills to other people, venturing into speaking assignments across the world, new business etc . You need to plan any amount required for this too.
Start investing from this moment and follow the steps constructively to enjoy your retirement life at 40,
Now you may change your thoughts and start working towards your passion which may not have retirement at all.