Tag Archives: COMPULSIVE

Retire At 45, By Changing Your Budget! -3 Simple Tips

Here are 3 simple tips on how you can get onto the road to retiring earlier than you ever dreamed:

1. Save a portion of your paycheck…NOW save more

Most have heard the advice to save a portion of your paycheck and put it towards retirement. Usually this figure is 10-15%. DO THIS.

If you already are doing this, Good. Now see if you can save more money in your budget and increase that percentage to 20-25%. Maybe have the lawn cut only once every other week. Or cut it yourself. Maybe learn how to save money on our energy bill. I have another article on just that topic.

The greater the percentage you put toward retirement, the sooner you can retire. In this case MORE is BETTER and SOONER is even BETTER!

2. Incentivize your budget

Everyone month couples/people across the world make a budget. On it they put food, gas, home payment, credit card bill. Then when they go out to spend money, they get…COMPULSIVE.

They start buying the Name brand foods, the Name brand clothes, the snacks at the gas station. Why? Because they have enough in their budget for it. They budget to fail.

So change it! Decide at the beginning of each month to put that extra money at the end of the month toward your investment account. Then the next time you are eyeing some designer shoes you’ll wear twice, think, “I could buy those but I really want my dream home.”

The more real that home, boat, car, etc becomes to you, the easier it is to save. You can begin to take pride in the wealth you are building in that account. All from saving a little money each month.

3. Found money

Have you ever gotten $20 for cutting a lawn? $50 for babysitting? Sold some tickets you couldn’t use for $30? This is what I call FOUND MONEY. And it can be very powerful.

Found money is money that you weren’t expecting, wasn’t in your budget, and haven’t planned for. You were going to watch TV all night, but your neighbors asked you to babysit. Found money. Your aunt asks you to paint her room. Found money. Now what do you do with it?

Take that money and place it into your investment account. Normally it just gets spent on some fast food or trendy clothes. You think because you weren’t expecting the money, you can just burn through it. STOP.

Put it into your investment account and take satisfaction from the fact that you will be able to retire a little sooner. You’ll be sun-bathing in the Bahamas in no time. Good luck!