7 Habits which will take you on the journey to retire early

You need to accumulate real welth to retire early. Everybody can do it with some patience and determination. Making money and saving can lead to growth of retirement accounts and eventually early retirement.

My mind always fills with unimaginable fantasies when I think of having one million dollars in my account and don’t have to think of working again. Till now I never thought of this thing. I always thought of working until the actual retirement age.

But having a baby changed everything. Now I don’t want to go away from home. I  can spend my whole day inside the house doing nothing (a lot of household things).

I mean I still feel nervous about not working but what if I will have 1 million dollars in my account. ooooh, I am getting goosebumps. What I have done is started predicting my future.

I always think and analyze the problems I or we as a family could face. And what needs to be done to manage those problems when they arise. We could not simply eliminate the problems but could make choices now which could decrease the impact of problems.

For that, there should be a change in present habits to manage future problems. You need to change how you think about the money now. How you are managing your money and time now.

Here are some habits you need to learn to have a happy future.

1. Accumulate real wealth instead of the illusion of wealth

Having real wealth means owing money instead of things. Buy those things that you need but not what you want. Purchasing big things just to show off means showing that you are wealthy, is not going to take you near your retirement.

Don’t think that your circumstances will be the same and your earning power will be the same always. It could increase or decrease.

What you need to understand is earning, saving and investing now. Now is the time to start now. When you want to buy something, just delay it for some days and think about its pros and cons.

Ask yourself, Do you really need this? Or if you will put this money to savings, how it will effect you. This kind of questions and answers will definitely help you out in making decisions about your money.

2. Do not have any debt

When I think about my parents especially my mother, she has an aversion to debt. But we are not like them. We could buy everything on loans. This habit needs to be changed if you need early retirement. Accumulating debt has a negative effect on wealth as well as health.

Pay your debt as soon as possible. It is fine to have a mortgage as this is your asset which grows with time in most of the cases.

Or having educational debt is not actually a debt. It is a lifetime investment ( My opinion). But you should pay off it as soon as possible. Having debt will not let you build your retirement fund.

3. Make clear money saving goals

How much you want in retirement years should be clear to you. When you have a clear plan, you can work on it. Without a plan, it is difficult to work out what you need to do. Plan everything, like how much you will need in your retirement fund. How much time you need to save to build that amount.

And the time it will take to build. Start it now. Even if you love your job, you can continue to work but it will give you more pleasure.

4. Be patient

Be patient with your money saving goals. It will take little time to build your wealth. Don’t give up on your temptations to buy big things because you don’t see the results immediately. Have the courage to save. After some years you will thank yourself for sticking to your saving goals.

Write on a paper how much you want to save and stick it in your bedroom, which will remind you daily. Think about when you will have the required amount in your account and cherish those thoughts. It will give you immense pleasure.

5. Increase your earnings to retire early

If you want to earn more , you need to work more. Either you can start some side hustles or a part time side job. This will give you more to save for your retirement fund. I don’t say that you have to leave your job after building your retirement fund, but you will have a choice.

Find more means to earn more and save more.

6. Start early to save

Early could be different for everybody. for some it is starting in the 20’s, for some it is 30’s  ( like me) and for some, it could be later. Just start now and today in whichever age group you are.

If you are in your early twenties, it is better to start now and don’t think that you will start later and you have many years to think about it.

If you are in your thirties, it is a good time. And if you have crossed 40’s, don’t panic, just start saving aggressively and start building your retirement fund.

If you start later, you will have to save more from your pocket. But when you reach this age group, you may have a better paying job. Even if you earn less, just save.

7. Downsize everything for early retirement

Downsize your house, car and your lifestyle. I don’t recommend becoming a miser because you cannot predict life. The time which you have today will not come tomorrow. So enjoy your life along with saving and investing. But make changes how you live.

If you have rented a house with  say $ 1400 a month ( We have approximately  these prices in Melbourne   suburbs.) Try to cut it down to  $1200. It will give you 200 dollars a month. Save it into your retirement fund.

Any extra money can be added to your retirement fund. Or if you are on a mortgage of  $ 1700   a month, downsize your house so that you have to pay $ 15oo a month. Those 200 dollars would do wonder on the long run.

You need to change your saving and money making habits now, if you want to retire early. You need soma patience and consistency in your saving goals. Once you build your retirement fund you can retire and relax.

It takes commitment, patience and determination to build your retirement fund. It is neither easy nor difficult. You just need to focus on what you want.

And when you have build your retirement fund, you can work as you want and you can do what you want to do.  You don’t need to be in a job which you don’t like. Or with a boss you don’t want to work with. You can chase your dreams and be free from financial worries.

These are my thoughts on saving for your retirement fund. Please share it. And tell me in comments what you are doing to build your retirement fund. I want to know more.

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