No deadlines. No board meetings. Just lounging around in a scenic beach with your loved ones. For most people, an early retirement seems like a pipe dream. But there are ways to help you get closer to the reality of hanging up those shiny shoes for some comfy flip-flops.
Pay Yourself. Okay, here’s the scenario. You get your salary. Pay your bills. Rent. Grocery. Miscellaneous stuff. Then you just wait for the upcoming pay check. If you’re going through this vicious cycle, don’t worry. There is a way out. If you see the miscellaneous stuff, that’s a hint. Instead of buying unnecessary things, or paying for things you can live without (like eating out regularly), use the money to pay yourself first. Whether it’s five percent, 10 or even more, set it asides as savings.
Cut down expenses. As previously mentioned, trim the unnecessary fat. Things and habit you don’t really need, don’t waste money on them. Ask yourself what are wants, needs and necessities in your life. Do you really need that iPhone X when you just bought the new iPhone last year? Do you need to go out for food every single time or you can just prepare something at home? Remember the necessities. If you want to spoil yourself (we all do, especially if we work so hard), treat yourself to something once a month. But nothing too extravagant that it completely reverses your effort for the whole month.
Additional income source. This is tricky for some, but it’s a great help for the future. Tricky because some people are so busy, they can hardly squeeze another job. But a particular income source does not have to be as taxing as your regular job. It can take an hour or two, once a week or even a month. It can be something you love or a hobby, like writing a blog, photography or cooking. The important thing is that what you earn from your alternate income source, save it. Who knows, when you retire the part time job may be a source of joy, as well. A way to pass the time productively without the stress usually accompanied by a regular job.
Coupons and discounts. Stores often have promos where you can save several bucks. Do, however, remember to use the discount and coupons to save up on the things you really need. You actually defeat the purpose of saving by using it for wants than needs. Use the coupons to cut down on grocery or other regular expenses you incur.
Set an emergency fund. More often than not, emergencies throw a monkey wrench into our plans. In order to offset such a situation, set aside an emergency fund. This could be three to five percent of your salary. The thing is, you’ll have something ready for the situation and you will not be tempted to dip into your savings when the need arises.
Invest, if not early, right now. Investing can be scary to most because of its technical aspect and the risks. However, if you are afraid of handling your investments, there are certain banks who will take care of your investment funds. This assures a certain stability, as well as rick protection. As a bank executive what is the best investment portfolio for you.
If you’re in Qatar or the rest of the Middle East, you may want to invest in gold. In Qatar, you can easily monitor the price of gold. When it goes down, buy. Expats can sell gold when they go home.
There’s also real estate. You can invest in real estate by renting out a room in your house. If you want to go big, there are companies which help you easily invest in real estate even if you’re in Qatar. Filinvest, for instance, allows you to pay a monthly fee for the property you bought. After two years or more, with your permission, the property can be rented by others. This way, the rent money can help you with the monthly dues. Eventually, if you have multiple properties being rented, not only will your monthly dues be covered, you also get extra payment in return.
Literally, create a retirement fund. While we’ve talked about how you can save up and have extra money, you need somewhere to out it. Open up a bank account, which could be a time deposit since it fits the situation, where you can pool all the things you’ve earned and saved. Obviously, this will be separate from the account which you use every day. Watching your fund grow through the years will give you more motivation to follow through on your goal
