Here’s What To Do In Your 20s If You Want To Retire Before 40


2021-03-24 13:15:04

Financial Independence, Early Retirement: What To Do In Your 20s To Retire Before 40

If one does not achieve financial independence on time, then it is difficult to retire early.

Financial analysts have always stressed attaining financial independence at a young age, especially those youngsters in their 20s who are working professionals in various industries. Financial independence is key to early retirement and the concepts are inter-related to each other. If one does not achieve financial independence on time, then it is difficult to retire early. To provide a comprehensive guide on understanding financial independence for early retirement, Chartered Accountant (CA) Rachana Ranade, recently addressed a session in Thrive 2021– an event organised by stocks and mutual funds investments platform Groww. 

According to CA Rachana, financial independence means that instead of us working for money, money should work for us. She explained that a movement known as ‘FIRE’ predominantly started in the US, which comprises of two basic concepts – financial independence and early retirement. FIRE is an abbreviation, in which ‘F’ stands for financial, ‘I’ stands for independence, ‘R’ stands for retire, and ‘E’ stands for early. (Also Read: Balancing Income And Expenses: How To Create A Monthly Budget And Stick To It )

Some of the major points to keep in mind in order to attain financial independence are as follows:

Redirect your cash gifts or pocket money
Career planning
Avoid or minimize debt
Reduce your spending
Get yourself insured
Build an emergency fund
Have a back-up plan
 



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