How Working Hard Today Can Equal Early Retirement Tomorrow

Early Retirement

I’d like to start off this post by challenging you to think about retirement outside of the normal, status quo.  Think about this, what have we all learned about retirement from our beginning working age till now for the most part?  We’ve been taught to work hard, put all of our money in a 401K and maximize the contributions that we make in general towards our retirement in later years.

The interesting thing about that philosophy is that things have changed tremendously.  Due to technology and other means, we now have a world where we can simply work across borders in one country as easily as we could from another. Gone are the days where a person could work for a company all their life through their own loyalty and be guaranteed a nice retirement plan to live off.

For one thing, it’s getting to be more of a world where people change jobs more often and those that have businesses are in a similar boat.

When it comes to planning for retirement, the baby boomers generation planned much better ahead for their future based on where they were at the time.  The newer generations can still retire and live well, but it will take better planning and going against outdated financial advice.  So how do we get there?

I’m glad you asked because the issue of working hard should not go away, but at the same time it makes alot more sense to work smarter at the same time.  First off, you want to revisit your goal planning.  I’ve said time and time again, that you should think of your goals as a proper treasure map.  Set your goals properly and revisit them so often.

Next off, if you’re a big spender, you’re going to want to cut back immensely and learn to save.  This is your retirement life remember!  Get into the act of automatically saving your income.  Too many people tend to get this simple formula wrong.  They  pay all their bills and do all their spending first and then try to save what’s left over, which is usually hardly anything.  Putting yourself first financially is the critical first step.

Next, you’re going to want to start diversifying your sources of income.  How can you accomplish this?  By finding ways of building passive income through other means.  This usually entails doing the work once and reaping the financial rewards after (although you may have to maintain these passive income sources).  A quick example could be purchasing a small apartment then renting out to a tenant to cover your loans and expenses on the apartment.  Meanwhile, you wait for the value of the asset to rise again.  This will usually allow you’re net worth to rise as well.  This is just one aspect of passive income, for a great classic book on building passive income, grab a copy of Robert Allen’s bestseller – ‘Multiple Sources of Income ‘.


This will put you in a better financial situation almost immediately.  In addition to passive income, I really endorse you to diversify your savings into financial vehicles that give you a good rate of return.  For example, your current bank may give you less than 1% rate of interest on your savings, yet moving a portion of your money into treasury bonds might yield you 5-10% on that money.  Starting to get the picture?


I also highly recommend that you build yourself a nest egg of an emergency fund.  I know this one’s been harped on quite a bit, but not enough people have one and are a paycheck away from disaster.  It’s generally a good idea to save between 3-6 months of living expenses in the case of a rainy day (car breaks down, job loss, roof repair e.t.c.).


Live Frugally, Put Your Savings on Steroids

After you’ve done the steps above, you should get used to the fact of living less outlandish and a little more frugal.  No i’m not talking about becoming an old miser that dies with 1 million dollars stashed in his Mattress.  Not at all, instead cut back your spending which just equals more expenses and less money in your pocket.  Do you really need that brand new car when a 5 year old one could do you just fine?  Just one example.


Next, really ramp up your savings as you’re gonna need it for your retirement plans.  Work a bit harder today to fully enjoy that tomorrow, got it? Ever heard cash is king?  Let it become your new motto and help others with their finances along the way.


Learn to Leverage and Look For Opportunity

Those that are financially well off just about all got there from using some sort of leverage.  It could have been a house they sold at the height of the housing market, it could be they are a highly sought joint venture broker.  No matter how they got there, they were usually smart about it.  These people have a knack for seeing opportunities and so should you.  Give M.J. DeMarco’s Millionaire Fastlane a read on debunking myths about how to become financially free.


It’s not an easy road, but if you hone in just on the financial steps listed above, you could very well retire rich and earlier than you would ever have imagined.


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Category: Retirement

  • Jackie Ebanks

    WOW this is POWERFUL STUFF!!!

     Great tips dwight. Keep the good info rolling

  • dwightanthony


    Thanks for your support.  Readers like yourself make it worth it.

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