How to be financially independent?

Observations of people over several generations simply suggest this: Financially independent people have recurring income from investments. They have investments because they saved, and learnt to invest. They were able to save because they spent much less than they earned. Finally they were able to have good earnings because they learnt. LEARN – Be a Star Student EARN more than your peers SAVE half your … Continue reading How to be financially independent?

Complete your Education

Whatever your talent, it always makes sense at least to finish school. The school and university route to a career is still the least risky one to take. Unless you see an opportunity that will never come again in your lifetime, complete your university education, preferably leaving with a professional qualification. The reasons are: Data consistently show that generally more education corresponds with more income. … Continue reading Complete your Education

Quickly grow a non-career identity

Many people tie their sense of self to the work they do. If they work for only one employer in their lifetime, they might tie their self-concept to the company. We hear horror stories of Japanese employees who continued the daily routine of dressing up, taking the train to work, and hanging around their old offices. There are similar stories in other countries. A close … Continue reading Quickly grow a non-career identity

Reduce Expenses

If you haven’t provided sufficiently for your retirement, it is obvious you need to cut your expenses. Even if your financial planning is perfect, the loss of your regular income is likely to be a psychological shock. You can decrease this shock by reducing your spending. Defer any major expenditure e.g. a new house, auto, computer, or video equipment. This is especially critical if you … Continue reading Reduce Expenses

Avoid sudden changes

Some people would be too impatient to plan first, and may suddenly jump into something new without preparing. This is most likely to happen to high activity persons. Example: A school principal retired at the mandatory age, collecting his entire provident fund. Unable to handle the reduced pace of life, he decided to open a Thai restaurant since he liked Thai food. He got the … Continue reading Avoid sudden changes

Adjust your life style portfolio

We don’t have to think of retirement as a time of inactivity and decline. We once heard an active eighty-year-old describe his contemporaries as ‘waiting to die’. Nowadays, the idea of retirement is far from that. It is about using the opportunity to achieve one’s full potential. There is optimism. and one chooses a personally satisfying level of activity. It doesn’t have to be restricted … Continue reading Adjust your life style portfolio