Financial independence and retiring early is possible if you get the basics right
It is possible to have financial independence and retire early if you have your finances sorted.
Imagine being able to retire at 40 or 50. Imagine the freedom this would give you.
There are three main elements to having your finances in order.
The first is your budget. The only real way to achieve financial independence and retire early, is to save. As a guide, the average person under 35 spends $850 per week, and the average couple (with no kids) spend $1,570. We recommend you review your spending to find out where your money is going. Start with some of the big ticket items such as electricity bills and insurances. If you already have a mortgage, make sure your interest rate is competitive. There are also some easy ways to reduce your day to day spending, starting with things like cutting down your takeaway coffee and make your own lunches.
The second element is maximising your income. This could include taking on a second job; doing further study to increase your job prospects; or starting a side business and growing it into your main source of income. There is no cookie cutter approach when it comes to earning more. The most important part is having a plan to do it.
Finally, you need to invest your savings. While we are strong advocates for making the most of the tax benefits of super, we acknowledge the major drawback is you can’t access it until your are 60. Therefore, it is also important to have an easy to follow investment strategy using a combination of Exchange Traded Funds and Investment Bonds.
If you are wondering where to start, contact Phil on 0417034252 or email at office@constructwealth.com.au.