Sunday, July 25, 2010

How to Save 50% of Your Income and Retire Young

Do you want to continue working in your sixties? I think that most of us would not want to continue working when we are 60 years old. So, how can we become rich before we reach 60 years old? The key to the answer is to be frugal and save 50% or more of your income. Your saved income should be invested properly to make it grow faster.

In this article, I am going to share some ideas to make more income and retire young. If your are interested, please continue reading the full post. In order to retire young and save 50% of your income, firstly you have to be frugal. You should always try to spend less and save more. Try not to spend on those things that you do not need, try to spend only on those things that are a must. One of the best ways to monitor your spending is to write down all your expenses properly and you will see where your money goes to.

Secondly, create multiple stream of income. Multiple stream of income means creating extra income aside from the income of your job. There are a lot of ways to create extra income. For example, you can use Internet as your extra income by blogging, online freelance job and so on and so forth. Besides, you can also join part time job such as unit trust agent, insurance agent, small business and so on. Multiple stream of income can help you increase your income dramatically and help you retire faster.

Thirdly, make your money grow faster and make your money grow continuously. Now, you are frugal and having quite an amount of savings, you can proceed to make your money grow. The way to make your money to grow is to invest your money. You need to invest your money properly so that your money can grow fast in shorter period of time. For example, if you are putting your savings in fixed deposit account for 2.5% to 3.5% per year, you can look for other investments that can provide higher return such as 5% to 10% per year. If you are good, you can find investment that can provide 8% to 15% per year. So, your money is working harder for you to make even more money.

By using the 3 methods above, you can reach retirement early and if you apply the methods properly, it would not be hard to save 50% of your income and retire rich.


Jasper said...

There are a lot of factors need to be considered in saving up for retirement.

Saving 50% of income, although sound perfectly good, but its not wise if you only save up without considering emergency cases.

Wise choice is to saving-little and getting protection to safe-guard those savings.

I have a similar post on this topic. Feel free to read and comment.

Prem Antony said...

When you are going into business you are looking for people who share similar levels of commitment

Jason Webb

Mar Francis said...

I am a perpetual savers and I think if you do 10% saving per month base on your gross monthly income and invest it with 10% interest then in 10 years it will surpass your present income. Earn and Invest Money

Rajbugsbunny said...

Good post... thanks man... Methods to Earn

Kevin Thoroughgood said...

Interesting post with plenty of ideas.

LiquoR ceRebRosPinaLis said...

Make money like I did, from here

Abhishek sharma said...

very good and increase the knowledge about technology & for new technology updates follow me on and also comment on it

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