How to Pave Way to Early Retirement
Disclosure: This article is part of VBit Technologies’ “Money Bit” where we educate our clients on matters Financial Literacy.
Ever watched one of those shows where someone gets fed up with their job and suddenly decides to quit in a fit of rage?
You know, the entire drill; trash their desk, dump all their files back on their boss’ desk, and then walk out of the office yelling expletives at everyone to start over elsewhere.
It may be billed on the show as a lot of things; powerful, liberating, even enviable.
But it’s not easy to replicate in real life.
In a world where people are working longer into their senior years, opting to quit a decent job or even retire early is increasing a buck in the trend. No matter how frustrating the job gets, many people opt to keep their noses down for the hope of a better future.
Even though inflation has consistently grown over the past few decades, wage growth has plateaued. This fact captures general trends for American households, but the trend should hold for much of the developed world.
The era of a man being able to buy a house and support a family on a median income seems like a bygone era. Nowadays, you’ll find millions of households where both parents are working relatively good jobs, but finances are still tight.
The only way to thrive in the prevailing economic landscape is to stay ahead of inflation. Relying on ordinary jobs’ wages to keep you afloat is a problem. You have to create wealth in your productive years in a way that is meaningful enough to give you options like the luxury of early retirement.
Here are some tips for paving the way for early retirement:
Determine What Kind of Lifestyle You Want In Retirement
Knowing your problem is half the plan. There is a lot to gain from understanding the kind of life you want to live in retirement. Do you intend to retire to a rural area? Will you be providing for your dependents into retirement? Will you still be working at some level or it is complete retirement? What is your approximate monthly expenditure during retirement, adjusted for inflation in the decades to come? Do you have great healthcare options?
Knowing your lifestyle in retirement is important for creating a mock retirement budget. This way, you can estimate how much and how fast you need to save up.
Opting to retire early is a risk. To justify this risk, you have to get yourself comfortable enough to take this risk. The first step is important to know whether you can afford this risk.
Evaluate Your Current Financial Situation
No one knows you better than yourself. Most people who take the risk of quitting their jobs or retiring early know at some level that they’ll be fine. Take stock of your present situation. How much do you have in savings? What is your debt situation?
Unfortunately, tens of millions of Americans have a level of debt they can’t wriggle out of in the short term.
Do you have existing investments to generate side income? See, passive income is your sure ticket to financial freedom. If you have a way of making money while you are asleep then you can afford to retire early.
For instance, if you have a Bitcoin mining venture that generates income consistently on the side, there is a channel that builds your wealth over and above your day job.
There is much to gain from having such extra income to invest in your retirement. The American dream may very well still be alive for you if you’ve got passive income strategies.
Get Serious About Spending Changes
When one starts working out to lose weight, you have to get your math right. There is no way you will lose weight if you exercise but still consume more calories than you lose. Just doesn’t add up, does it?
The same goes for spending and saving. If you are to retire early, your spending has to show that you have this interest. Prioritize spending on things that will make your life easier in retirement. For instance, get that house payment done instead of spending money on vacations every year. Invest your money rather than purchasing a car every so often.
Take control of your spending to ensure you put away more than you spend. Henceforth, that is the blueprint for early retirement.
Learn About Investing and Creating Wealth
If there is one take-home point, then it has to be this one. Understanding finance is a skill that too many people take for granted. It doesn’t help that education, up to the high school level will equip you with very little skills on how to actually build wealth and be on top of your financial situation in modern life. Come to think of it, this is probably the most important skill to have in life.
Consequently, many people take for granted the various resources at their disposal. Most do it due to a lack of knowledge, some for a lack of trying. Take time to educate yourself about investing and generating wealth. The ideal way to go up the social ladder is to find proven ways to climb some steps. There is no plan that beats good old wealth creation through the identification of opportunities.
Opportunities are everywhere around you. It doesn’t have to be the old school business. Take Bitcoin mining, the option highlighted earlier. Bitcoin mining simply involves powerful computers crunching numbers to validate Bitcoin transactions while getting rewarded the miner with new Bitcoin.
Sounds too simple? Well, you wouldn’t believe how many such good opportunities there are. Bitcoin mining takes only investment in hardware, finding a convenient power supply, and cooling, and there you go. The computers replace banks in the mainstream financial system. Banks essentially play the role of middlemen by charging transaction fees on user transactions.
You don’t have to be a genius in cryptography or computers to make money either. The computer does all the work for you. But you wouldn’t know of such opportunities if you don’t learn and research.
Mine Bitcoin Today with VBit Technologies
From the tips above, early retirement is all about getting the planning right. Bitcoin mining is a great plan to go into retirement early.
Why is this? Bitcoin was the highest appreciating significant asset in the last decade. Yes, Bitcoin outperformed even gold, which many consider to be the ultimate safe-haven investment. Bitcoin’s value has stabilized around the $9,000 mark and could exponentially rise in the future.
Besides, the manner in which Bitcoin is generated provides the perfect opportunity for making money. Once you have set up an ASIC rig, you keep generating Bitcoin consistently for the foreseeable future. If you can restrict your expenditure and save the money you generate, either in Bitcoin or cash, you might have yourself an early retirement path.
Two caveats; Bitcoin mining produces a lot of heat and consumes power ferociously. This situation means that you need cheap power and cooling mechanisms.
Accordingly, mining is simpler for companies with the institutional might to handle such logistics. VBit Technologies is an equipment reseller with data centers in areas that provide cheap renewable power and natural cooling.
Sign up with VBit Technologies today and create a path to early retirement!