Retirement planning is the biggest part of our lives that many people don't pay attention to until it is too late. In the United States, people retire at 65 years old. It has been that like that since the Social Security Act of 1935. However, in this social media world, we have seen that people can retire early or work because they want to if they start planning their retirement early on in life. There are many ways to become financially free, but requires patience, time, and money. In today's world, the millionaire club is the new rich. You might ask yourself, is it possible to become a millionaire without following the traditional way of working until 65? I can assure you that there are many ways to become a millionaire and retire on your terms.
I believe that every person should choose to retire early or stay working but as a choice. For instance, in the United States (the wealthiest country in the world), most people cannot afford a $400 in case of emergency. Most people make good money but lack the understanding of how money works.
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I don’t blame anyone for not understanding the basic concept of personal finance. I blame our education system instead because it has failed us in so many ways.
For example, how many millionaires or wealthy teachers do you know? How many college professor millionaires do you know? I don't mean that there aren't any rich teachers or university professors out there. Although, a lot of our educators are not financially successful.
Here is how you can change your financial situation and retire early as a millionaire by making little changes to your life.
Choose your friends wisely.
Most people are broke because they hang out around broke people. For example, think about the people you hang around. Do you talk about finance, politics, life, or spend a lot of time talking about how life sucks or celebrity news? Your words have a big influence own your life.
If you surround yourself with successful people, you will be successful. Also, if you spend most of your quality time with broke people, you'll die broke. The circle of people around you matters because you are the average of your five friends.
Change how you see life.
99% of the world's population believes that some people are destined for the greatness, and others are designated to die broke. To change your life, you must believe that it is possible first. If you ever think that you are not destined for greatness, you will never be successful. Your greatness comes from you because if you don't believe yourself, who will? Believe in yourself, and the world will believe in you.
Breakaway from your limiting beliefs
We all have limiting beliefs in one form or the other. For instance, a lot of us blame geographical location for our failure in life. However, we tend to forget that some people from that same area are successful. For example, many people in Africa, South America, Asia, and other third-world places believe that it is almost impossible to become wealthy unless they move to their country’s capital cities, western countries, and other wealthy places.
These beliefs are the reason why they are not successful.
However, I believe that if you can't start a business without money, you can't start it with money. Money is not what makes a business strong but mind and right people. If you have a great idea, money will come because all big companies that you admire today were just ideas at some point. As soon as you put a stop to your limiting beliefs, success will come to you.
Related Article: Breaking the Generational Poverty Curse: How to Escape the Poverty Mindset and Create Wealth.
Read and Read Again.
successful people read and educate themselves while weak minds spend hours and hours on TV and social media. There's nothing wrong with watching tv or social media as long as you use them wisely. After all, I watch tv too especial if Manchester United is Playing. But, if you watch Tv for more than two hours, you are wasting your time because you could be reading a book or watching educational videos on YouTube or somewhere else or doing something meaningful.
Educate Yourself about personal finance.
If you want to be financially free, you must understand how money works first. I learned about this a little late. I was 25 years old when I started to take charge of my finance. Let me tell you a story of my finance. I had a job, making around $60k a year pre-taxes. I was a college student then, living home with my parents, yet my bank account balance was sometimes in negative because I was tracking my spendings. One day I was sitting at home watching a YouTube video and advisement about the personal finance popped-up, and it caught my attention.
After watching that advertisement, I sat down and went through all my expenses. I found out that I was spending a lot of money eating out, unnecessary subscriptions and more useless expenses that I didn’t need. That same day I cut off all the unnecessary spendings, and I started to save more than $900 per paycheck after paying the bills. Since then, I have made sure that I know how and where my money goes every month.
I told you this story because I know many people are not broke. They are ignorant. I urge you to write down all your expenses and bills and cut down on the unnecessariness. To be financially successful, you have to live a frugal life first and watch your bank account gets big.
Open a savings account.
Some people refer to savings funds as emergency funds because emergency funds are the money you should have access to in case of a real emergency. Emergency funds should be used only if it is an event that affects your life in one way or the other. Here are some examples of emergency, auto or home repair, hospital if you don't have insurance and more. However, you cannot use it for other things because it is attempting to spend when you have money stashed in the savings account.
Stay away from bad debts.
There is a difference between good and bad debts. Bad debts are unnecessary loans such as home furniture or TV loans, credit cards that you don't need. good debts are loans that you take for investment opportunities. All I am saying is that you can’t get ahead if you are drowning in debts that aren't making you any money; however, mortgage loan and education loans (to improve your work skills) are examples of good debt.
Investing is not as hard as the wall streets gurus says because you can start with as little as $1. Stock and cryptocurrency industry are the easiest way to get into investing. The stock and cryptocurrency investing fundamentals are that you buy low and sell high. You can also buy if you are a long-term investor.
Investing doesn’t stop only on the stock and cryptocurrency market because there are many ways to invest. You can invest in yourself; you can invest in your small business and grow it as you go. If you want to join the millionaire club, you have to learn about investing because most reach people own stocks in either their companies or public companies on New Your stock exchange. Traditional jobs won’t make you rich unless you are a doctor or an executive in one of the biggest companies. Just think about which kind of investing you want to get in to start building the wealthy you deserve. Click here to learn more about investing and get 12 free stocks from major companies like Apple, Tesla, Microsoft, Netflix and more.
Related Article: 12 things to consider before opening a brokerage account to trade stocks or cryptocurrency.
Passive Income: The most known stock Investor Warren Buffet said, “If you don’t find a way to make money while you sleep, you will work until you die” This quote says it all because you can’t become a millionaire or wealthy if you can’t make money in your sleep. The difference between employees and employers is that employees work for money. In contrast, Employers buy time with their money. Investors and Business owners understand that time is more valuable than money. It is crucial to have a system that makes you money without working because that is how rich people get richer while poor people get poorer.
Create more than one stream of income.
If you know a wealthy person, ask them how many streams of revenue they have. I guarantee you that all successful people (Financially speaking) have more than one income. Having one income can be terrible because you might not survivor when the unexpected happens. For example, when Coronavirus hit the world, everything shut down, the stock market collapsed, and the governments had to step in and help people because they had zero income. However, people with a different more than one income stream were ok since they were prepared for the unexpected. It is vital to have more than one income because you never know what tomorrow might bring.
When you opened this article, you were hoping that I would give you some get-rich-quick ideas, but I hate to be the bitter news. there is no such thing as getting rich quick. However, if you follow the steps in this article, you’ll become a millionaire before you retire 65 depends on your age and how dedicated you are.
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