Category Archives: Investing

How To Retire Early

A lot of people are curious about this topic. A lot of people wish they could do it. Only a few are.

Retiring Early is deceptively easy, but it takes a lot of what I would call personal development. You have to have the self-discipline necessary. You have to do the emotional work that goes along with it….

How to Retire Early

  1. Work to Make Your Money – This is the only way to do it unless you end up inheriting or winning a ton of money. You have to work to make money. And it actually doesn’t matter how much you make. People have retired early with high and low incomes. It just takes a good strategy to help you retire early.
  2. Be Efficient with Your Money – And by efficient I mean you need to live, or learn to live, frugally. This means that you live below your means. You must make the most of what you have so you won’t need any more than is necessary and you won’t waste your time or money.
  3. Save Your Money – If you spend everything you earn you won’t ever be able to retire. It seems like most people are able to eventually save 10% of there money if they work at it. Many are able to save more. Some are able to save substantially more. Upwards of 70-80%. The more you save the earlier you can retire.
  4. Spend Your Money – Get yourself to the point where you buy only necessary things with the most value. With value equaling a good return for your hard earned money. Buy the least expensive housing, transportation, and food that will meet your needs. Spend your money on educating yourself about how to retire early and live the lifestyle you desire. Refuse to spend money on things that will not improve your life.
  5. Invest Your Money – Money that isn’t doing anything is just paper. Once you have saved and invested enough money (capital) to have the earnings (returns) support your lifestyle, you have successfully retired. This is the concept of a 401k, pension, etc. You no longer work for money, you have Your Money work for you!

Noticed how I capitalized “Your Money”? I do this to emphasize the fact that you are the only one who will get yourself to early retirement. You have the ability to do it. The more you learn, the more able you will be to retire early.

Good luck! Please comment with your success stories below!

Resources: Stories & Learning Opportunities

  1. Joe Dominguez retires at 31
  2. Paul & Vicki Terhorst retire at 35 to become Perpetual Travelers
  3. Billy & Akaisha Kaderli Retire at 38 to also become Perpetual World Travelers
  4. Jacob Fisker Retires at 32 and starts his new work educating people how to retire early themselves.

How Do You Know When To Cut Your Losses?

How do you know when to cut your losses?

When your exit strategy says so…

Oh, you didn’t make an exit strategy when you got into it?

Better start making an exit strategy for all plans and projects in the future…

How do you make an exit strategy?

Decide what you are willing to lose ahead of time and put it in writing…

Is a 10% loss worth getting out, how about a 20% loss?

Learn how to count your intangibles too such as lost sleep, stress, and anything else that damages your health or well-being, or even intangibles such as your reputation.

It is wise to make the decision ahead of time, of when you will cut your losses. Because if you try to decide in the moment, your emotions will often get the best of you.

Don’t let a 100% loss fill you with regret…

Decide beforehand when you will cut your losses, make an exit strategy, and start getting some nice relaxing sleep at night.

Then execute your exit strategy with the confidence that you are making the right decision.

Simon Black – International Investor

I just wanted to take the time to mention a very intriguing new website I found.

It is called Sovereign Man and it is written by a guy named Simon Black who does a daily report from the field (currently Nigeria) about economics, investing, and international business.

I love the site, and I have subscribed to it.

It is a whole let better than reading the normal international business news sites like CNN.

It is a much more intimate look into what’s happening in the local economies of a bunch of different countries and it is well worth the read if you are doing any kind of international investing at all.

Check it out, it’s well worth the visit…

Sovereignman.com