As we are entering the New Year, many of us feel that it is time to set new goals. What would we like to do in 2017? What would we like to achieve in the long term? One of the most common desires of people is to retire young, as we usually do not want to work until the age of 65. Although it seems to be difficult, retiring young is still possible. A lot of people have done it already. If you want to achieve the same, consider the tips and strategies described below. With hard work and persistence, you can make your dreams of becoming financially independent come true.
How to earn a high income
The first step to retiring young is earning money for your retirement, as this goal requires building up some capital. A high income made from a regular job can certainly help a lot, but it is not always feasible. It is not essential either. You can spend the time outside of work on developing multiple streams of income.
How can you develop additional streams of income?
• You can use different investment vehicles to make money:
◦ Purchase stocks: the stock market has steadily climbed since 1900, so you can expect that the value of your stocks will increase in the long term. The only disadvantage of this method is that you need a high starting capital to buy stocks if you want to retire early from the dividends plus the increase of stock prices.
◦ Learn trading on financial markets. You can trade on the foreign exchange market or you can buy options on stocks, currencies or commodities. Trading can be started with relatively low capital, but you need to be aware that it takes some time to learn and practice strategies. A special kind of trading is binary options trading. Binary traders need to decide if the price of an asset will go up or down during a fixed period of time. The risk and the profit are fixed in this kind of trading, so it is less risky than regular trading. Please read our article DIFFERENCE BETWEEN BINARY OPTIONS AND FOREX TRADING for more details.
• You can create an automatic income source with a blog with advertisements that generates profit on its own while you are not working. You can also write articles for a revenue sharing site or take part in different affiliate marketing programs. These help you get additional revenue on top of your regular salary that you can save for early retirement.
With hard work, you can increase your income over time, and this will result in the growth in your wealth.
Learn to manage your finances
If you want to retire young, you need to manage your money well. Increasing your income is not enough if you spend it, so you need to track your expenses too. It is always a good idea to create a budget and stick with it. A budget helps you control how much money you spend each month.
You also need to decide how much do you save. You can always redirect smaller expenses towards your retirement account. Do not be afraid if you need to make some adjustments. It will be worth it once reach your goal and retire early.