No matter how much you love your job or are passionate about your career, early retirement still seems fascinating! Although working at a new job will be tempting at first, waking up regularly at 8 am in the morning for work every day gets exhausting after a while. Also think about the never-ending traveling plans that you can make without worrying about how many casual leaves are you left with.
Sounds too unreal, right? The truth is that with little planning and foresight, you can get retired earlier in life! All you need is the right strategy and goal, here are some tips:
Savings, Savings, Savings…
If it’s only been a few years since you started to make your money, you might find it hard to save, especially with all the temptations arounds. However, only your savings are going to serve as an umbrella in your rainy days. So, it is very important to be focused on saving your money. Whether you are earning 200K or 50K per month, allocate a specific percentage just for saving your money.
Generate Some Extra Cash
If you want a chiller life in your 40s, then be ready for a more difficult one in your 20s. Try to earn maximum cash. With the modern technology and convenience, it has now become easier than ever before to generate additional funds. Depending on your skills, you can do some freelance work along with your regular job. Apart from this, with growing ease and flexibility of timings at workplaces, you can manage two jobs simultaneously as well.
Investments are Your Best Friends!
Don’t just grow, let your money grow with you as well! There are countless investment opportunities in Pakistan. Regardless of your money and budget range, you will find something to invest for. For example, buying a prize bond starts from as low as Rs.100, which is the best way to secure your money & try your luck at the same time. You can buy certificates of deposit, invest in stock market through mutual funds, buy prize bonds, gold, forex and much more. Do your research and evaluate and choose the best option considering your needs and requirements!
Let Your Money Work for You!
Why work when your money can make money? If you want to retire by 40, you need to have some passive sources of income working for you. Save enough money to invest in something that can pay back higher. Real estate is a very good option for that. If you take a housing loan for an additional house or shop for 20 years in your 20s, you will be owning a residential or commercial property in your 40s which you can rent out & earn for the rest of your life. Apart from this, you can invest in SMEs to become a sleeping partner & earn through the profits.
If you have a God gifted skill, create your own art i.e. music, paintings, books, sculpture, games, recipes etc & earn by selling it for the rest of your life!
Life is unpredictable, and no one knows what future holds for us. It is very important to manage your finances sensibly. Try to get yourself and your family insured as early as possible in life. It will save you from any unforeseen expenses due to disturbance in physical and mental health in your coming life. There are so many insurance plan, do your research to find the most suitable for you. Click here to get more details about health insurance in Pakistan.
There are some tips & techniques that will help you in retiring by 40, try these in your life and be an example for many around you!