How to plan for an early retirement

For the last few days this idea of early retirement was running in my head. I came across a blog (among several more) which talked about retirement even in 30’s provided one starts working at 20’s and save up to 75% of take home income! Funny and sounds impossible to me but I know someone in her who exactly does that and I want to see whether she can retire in her 30’s. So for people like us who may have started thinking about retirement after their 40^th birthday there is still hope. There are few baby steps and few giant ones including some life-style changes but there is chance. But it is like your fitness diets you should be serious enough to continue till the end. Some of the steps are even big for me which I am suggesting to myself also you need support from your partner and children.

Here is a step by step instruction which I am implementing for myself which I gathered (read researched) from several blogs.

 1. Assess your monthly spending, group by categories like Grocery, Utilities, Credit Card etc. This will give you a rough idea of the areas where you can make changes to save.

 2. Find out the difference between your monthly spending and earning.

 3. If it is negative meaning you are spending more than your earning, stop reading further or take a second job and start all over again from step1.

 4. If you are still reading then make the list of things which you do not require like an extra pair of tennis shoe or an extra purse just because they are on sale or an expensive jacket for your kid because you can afford it.

 5. Keep a check on your groceries and do not spend more than what an average middle class American household spend. For a family of 3, it should not exceed $100 per week and it should include cheese, wine, organic meat/produce and occasional take-outs.

 6. Make your own lunch and shun the Starbucks.

 7. Be active and that will not only save copays to the doctors but also will keep you happy.

 8. Invest on a good car and try to keep it as long as you can. Your car is not an extension of your electronic gadgets neither your Lazyboy sofa but it is necessity if you live in a suburb in US. The other alternative is bike as much as you can, but only possible if the weather is not too adverse.

 9. Save a fixed amount of money each year to pay off a part of the principal of your mortgage in case you don’t live in a rented house. If possible pay off the mortgage as soon as you can with a second income.

 10. If you achieve all of the goals mentioned above celebrate with something you like and have long lasting memories and which is expensive. It can be a trip to a place you planned for long or throw a party at your house or can go and meet your parents and family, something which you desired for long and will cherish longer. But remember not to spend more than what you saved for it. Yes, you must have saved for it in before step4.

 11. Now you should see a significant amount in your savings account as you have been cautious and trying hard. This should be 30% to 50% of your take home income. If not then you have to keep reading.

 12. Make maximum contribution to your 401k plan that will help you save money which you are not even access to, it is like having a pay cut.

 13. If you pay off your car then take that money out of your checking account to savings account so that you are saving it and not absorbing it in something you were surviving without for so long.

14. Whenever you are making a big purchase (anything over $100), plan for it and never make any decision without checking your current earning vs current spending and not breaking the ground rule Earning should be greater than Spending.

 15. Lastly and most importantly have a Stoic or prudent life which is an ancient philosophy called Stoicism which was to remind yourself at all times of what you can control and what you can’t. We can’t control geopolitics, we can’t control the weather, we can’t control the economy, we can’t control other people, we can’t even control our own bodies, not entirely anyway. The only thing we can really control are our own thoughts and beliefs. If we remind ourselves of that, and focus our energy and attention on our own beliefs and opinions, then we can learn to cope wisely with whatever the world throws at us.

 

 

 

 

 

Long-term Relationship

 

There have been several ups and downs and numerous bumps in the way to a successful long-term relationship. There are compromises and backlashes from a bitter misunderstanding but at the end what matter is the honey that oozes out from the wounds. The great feelings while driving back home after a bad day at work. The expectation that every sensation will always be rightly appreciated as they know you so well. The ability to share every small redundant thing with them which is so important to you for some submerged emotion attached to that.

One of the essential ingredients of a long-term relationship is mutual competitiveness. Individuals are competitive only with their equals. From that comes the mutual respect. So even when you are feeling extreme hatred towards the other your respect will hold you from making an abusive assault on your partner. Another ingredient is the feelings for each other. From that comes sharing of responsibility and liability to make each other’s life equally enchanting and enjoyable.

A long-term relationship gives you the promise that when you woke up in the morning at least one thing you feel great about is your partner and your children who are your utmost motivation for your life. Whatever you achieve in life nothing can give you more pleasure than a warm loving kiss.

In this fast life when we spend more time with unknown/half-known people through social media we should take a step back and think what are we achieving from that. Are we getting happier or becoming a victim of our own blunders? Isn’t it more important that we should do things in life not to share with others but to be happy for ourselves? Why do we need to share our personal photographs with unknown people? Why are we looking for recognition from others, is it because we are not getting attention at home? If we are looking for a long-term relation then definitely we need to change the trend. Try to spend time together by sharing the daily chores and grab every opportunity to be together with the person you love.

Life is extremely unpredictable and may cut short without giving any warning. Some small steps that is all required to make it happen like starting the day with coffee or breakfast together. After a long day enjoy a walk in the nature or exercise or swim together. Then prepare a meal and enjoy the food in a laidback way. Life is more meaningful when lived for oneself and for one’s own fulfillment. It is much worthwhile to invest time and effort on a long-term relation rather than short-term highs coming from a facebook like or share. Exploring new places are never more enjoyable when shared with someone who is enjoying it exactly the same way as you. Live life as if tomorrow will never come and enjoy what you have.