1. Make Saving a habit
It’s not about how much you earn, it’s about how much you save. Stash about 10% of monthly salary into savings. If you’re having difficulty saving, start with a small percentage. With 3% to 5% , then just gradually increased the rate over time.
What’s important is the habit you build. Start working as early as possible to get the benefits of compounding interest, which brings you closer to early retirement.
2. Have more than one source of income
“Never depend on single income. Make investment to create a second source.” – Warren Buffet
3. Earn income from hobbies and passions
Generate income from your hobbies and passion! If you know how to paint, then start selling your masterpieces. If you know how to dance, then you can start dance lessons for kids and adults or even start choreography sessions for school dance groups. Baking pastries can be a good source of income too!
Don’t forget to put your earnings from your secondary income sources to your savings to speed up the road to early retirement.
4. Get protected with Insurance
Insurance protects from unforeseen events and gives a guaranteed payout during events such as accidental death. Even better, the payout received on insurance claim is much larger than the total amount paid in premiums.
5. Start early
Open a Retirement Savings account as soon as possible. With P 500, you can start your savings and later increase into higher amount!! With compounding interest per annum, surely you can enjoy early retirement!
