RETIRE EARLY – What, When … How?

If you’re just starting to read this information, we’ve covered a lot
of details involved in generating massive savings, and avoiding SEVERE pitfalls of spending that almost nobody considers to be financially fatal.  We’ve discussed some of the cool, gritty details of how numbers add up with Compound Interest. We’ve also pointed out direct ways to defer a few common expenses that will revolutionize your future, by saving that money instead.

What does it mean to Retire Early?

couple-on-beach(image from Jessica Sager’s article)

Your personal Early Retirement Saga entails stepping from a foggy, unknown financial future, into the crisp fresh air and green pastures of the promise land of finance, all amidst the treacherous odds given to us by Big Commerce…

Retiring Early means saving far more than the baseline numbers discussed through the rest of this single article.  It means saving 10, 20, 30, even 40 or 50+ percent of your income.  Retiring
early happens faster the more you are willing to save, learn, and the
more modestly a person is willing to live.  It also requires making a
few smart decisions outlined through this website.

For some people, retirement planning can sound… stodgy and boring, and it seems to translate to the most abysmal use of cash: letting it sit there.

For those who thirst for Financial Freedom it becomes like the greatest game you ever played. The Early Retirement Saga is so real, valuable, complicated, intricate…

It’s directly tied to your well-being,
and it’s there to ponder throughout life,
which makes it present, and kind of cool. 

Translating your personal Early Retirement Saga into something actionable, awesome, and desirable can take a few doses of serious consideration, but it will yield a new, healthy addiction.

Early Retirement is about FREEDOM.
None of us have freedom without covering ourselves in the days ahead.
We are obligated to pursue craft or labor endlessly until we achieve the
small stockpile needed to defer labor.  For every dollar saved you are literally buying your freedom.

There is NOTHING more incredible to purchase, make payment on, and progressively reach than FREEDOM.  At any stage in life, plotting for an earlier retirement is just another way of saying that we are looking for Financial Freedom.  Many people are pursuing the ‘get rich quick’ scheme – and who could deny the desire – but the power in reality for most people involves getting rich slowly, and it actually works.  At first this task seems difficult, but time passes quickly, and when leverage of your money starts to be asserted, you start to see the power of saving cash now.

Let’s have a look at our ages, and talk game-plan here: 
these are the minimums to an average retirement in your mid sixties. To speed up retirement, devise for yourself some larger numbers.

20’s
Saving cash now is the most potent thing you could ever do.  While
salaries can be a bit lower in this age bracket, figuring out how to
save and invest wisely around $100 (or more) a month would start to
guarantee a good quality of life in the entire second half of your life.
Don’t balk if you can only save $40 a month, or even $20 – JUST DO
IT!.  Generating monthly savings can seem daunting, and the goal far
off.  It’s easy to think that you can easily make up the difference by
just saving $5,000 in a few years instead.  For most people… IT NEVER
HAPPENS.  Probably 90% of people will save nothing in their 20’s: and
instead take on a lot of debt.

Debt is the opposite of savings, because you end up paying the interest payments that are roughly equivalent to a really good monthly savings number.  If instead of saving $100 a month, you are paying $100 of interest, then instead of guaranteeing a good future for the second half of your life, you are actually selling off a good quality of life in the future to some bank or creditor.

Cash in your 20’s will hit incredibly potent levels of Compound Interest, and ignoring this is a multi-fold loss.  You don’t just lose the cash invested, but you lose the future of that cash.  That is the essence of Financial Freedom in the future, and the goal of Early Retirement.

30’s
If you are like 95% of people, you might not have saved very much
money yet.  Of course it’s regrettable, and sometimes it can cause a few
moments of blank staring and thoughts that might almost get you to save some money.  Believe it or not, losing the impact of Compound Interest in your 20’s is a serious issue.  In your 30’s there is no excuse available, no running room, and a time-is-running-out mentality should be yours.

Old age can extend a really, really long time.  Yet, by now, you know how time flies.  The slight adjustment made now for savings will barely be felt in the large scope of things.  The truth is, we are animals in a wilderness, and refusing to cover your ass is a death sentence! Get serious, don’t delay, the 30’s still offer a super potent opportunity for Compound Interest – but when you reach your 40’s, you will have to save double to make up for what you didn’t save in your 20’s and 30’s!!!

The minimum goal for saving in the 30’s should be $200+ a month (focus on the +).  This will round out the very small Social Security payments received in old age (unless Social Security is empty by the time you need it).  If you plan to live on Social Security only, then be prepared to be about as poor as the average college student from age 60 to 90 years old!  We’re talking Ramen Noodles, scrounging for gas money, stressing out about paying rent, not going to the dentist, and signing up for medical experiments for cash.

40’s
Saving in the 40’s should be like the climax in the action seen in
movies – there needs to be a sense of urgency, extreme will, and even
desperation.  It’s time to be solid and direct about this, unforgiving
in the lame methods of burning cash, criss-crossing debts, and
prolonging the inevitable saving that must occur.

Some people get this far with a decent saving attitude and then make a poor decision that undermines it all – like moving to a bigger house.  This will wash away your lifetime of mortgage interest payments, which could be like setting fire to $100,000 or more.  (Own the house, then sell the house, then buy a new house with cash)

Sure, you might have kids. Sure, you might have some pension coming.  Sure, you might have a plan. Sure, you feel good, and think your best, smartest, and thus most cash-worthy earning years are right here, right now.  None of this changes the fact that by the time you are 65, you either need a fully supporting, guaranteed government pension, or you need at least $500,000 in the bank to deliver you a 6% interest payment per year, for the rest of your life.

50’s
Hopefully you have been saving up.  Hopefully you are almost about to pay off a mortgage. If not, simply take stock of your financial situation, and start saving EVERYTHING you can.

60’s
Save. Save. Save.  Be smart.
Some things need to be stated directly, and other things only need to be
implied.  As we can see, it’s never too late to save, because no matter
what, saving is in your future. HOWEVER…

IT’S also ALWAYS too late to save, and waiting another day, or a week, or a month is horrible.  Waiting another year is saddling up a future you, an older you, a more tired you with something that should have been dealt with when you were younger, and could do more, and recover better.

The bleak spin is intentional due to the nature of the shark pit that is Big Commerce: every day it’s like sitting before a long cold winter, with the risk of being without food or warmth.

Now, if you want to incinerate the bonds 
that Big Commerce has on you, 
then challenge these numbers… simply save more!

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