Updated: Dec 14, 2020
When I was younger, I thought I'd work as hard as possible and save as much as I could. I was focusing on accumulating assets that I felt a sensible adult should have, while working a corporate job where my sole income was my salary.
What I realized is that to make money and build savings and with that financial freedom, i needed to ensure I had multiple streams of passive income.
Here are five tips That will allow you to retire young
1. Work hard and save for a down payment to buy a home.
The benefits of homeownership are huge—especially when your younger. A home is a long-term investment, and if you stay long enough, it can mean building serious wealth. Sell the house at a profit later on, turn it into an income-earning rental property when you're ready to move up, or enjoy fully paid off housing during your retirement years (though those may be far down the line!)
I worked multiple jobs and saved every month while I was in my twenties; I put aside my money in excellent investments that grow.
2. Multiply your savings rate.
Most of bank saving account. They give you 1% interest. You can make greater returns by understanding and mastering investment.
We have to make money with little effort.
That's called passive income, and one of the best forms of passive income is investing. When you invest your money, it makes money for you.
You don't need a lot of money to start investing, but you will never have a lot of money if you fail to invest.
There are many ways to invest and build your nest egg:
Passive income is income that requires little to no effort to earn and maintain.
It is called progressive passive income when the earner expends little effort to grow the income.
investing in the stock market, mutual funds, index funds, rental properties–the list goes on.
I will post a video regarding Rule 72 that will open your knowledge about how your money will multiply.
3. Prioritize you futures over "living the good life" now
4. Live Frugally
Prioritizing your future means you're spending money in moderation and taking full advantage of the accumulation phase of your life. While you're making the most money, save the most money.
5. Buy The Right Life Insurance for peace of mind.
I'm glad I brought Life insurance when I was in my thirties because it is cheaper when you get life insurance when you are younger and healthier. I got an IUL type of life insurance (Index Universal Life Insurance). IUL differs from term insurance. I can take it out as a living benefit if I get hurt or critically ill. Adding more each month to this account increases the future income–potentially tax-free retirement income. IUL also offers the advantage of a tax-efficient death benefit for loved ones.
With unforeseeable events like the COVID-19 outbreak it's imperative that we all safeguard or future by being fiscally responsible and doing all we can to ensure we have enough accumulated wealth and adequate insurance to protect ourselves and our loved ones.