Monday, December 21, 2009

Strategies for Building Wealth and Retiring Early

At a recent holiday gathering, I ran into a friend who had also retired in his forties. We compared notes on what strategies enabled us to retire early. There seemed to be two recurrent themes in our discussion:
  • Paid ourselves first. Essentially, we put money in savings before paying bills and other spending. I have posted before about why I believe this is a great saving strategy, which has helped us build wealth.

  • Lived below our means. Our lifestyles were a conscious decision. Even though we could afford more, we would have lifestyles that were below our peers. We would drive less expensive or used cars, live in moderate housing, and avoid extravagances. As a result, we didn't use debt to expand our lifestyle.
  • Even in these economically challenging times, he and I have managed to stay in early retirement, for four and two years respectively. I'd like to think it is the results of a good execution of the above two strategies :-)

    For more on Strategies and Plans, check back every Monday for a new segment.
    This is not financial advice. Please consult a professional advisor.

    Copyright © 2009 Achievement Catalyst, LLC


    pfstock said...

    What? Only two steps? It can't be that simple...

    I thought that there were 9 steps to financial freedom, or maybe a 12 step program is available. Aren't you planning on writing a 6-volume series on the topic? What about a 10-CD set for the automatic my wealth builder system? Or a two-day seminar and a DVD course???

    Oh well, maybe it can be that simple. With my tongue firmly planted in my cheek, I want wish you a Merry Christmas season.

    Super Saver said...



    Merry Christmas!

    LeanLifeCoach said...

    Can't get much leaner than that. Why is it so tough to follow though?