key to retiring much earlier
Here is (was) my strategy. Could have retired at 46, waited till 55 for healthcare.
This is just how it worked for me. Everybody’s situation is different, and should be handled accordingly
1. Priority 1 should be eliminating or reducing debt. I view debt payments by default as negative income.
2. Competitively bid all aspects of your expenses. Get the utmost value down to the penny for everything you buy, or services you secure. Over years and years, you would be surprised how much this adds to your net worth balance sheet.
3. Keep your investment portfolio that is intended toward goals... i.e retirement as an example, in strong conservative investments. When you have those bases covered, then you can look at speculative plays.
4. I invested zero in the dot com era in the 90's. My father gave me the best advise of all in that era.. Why would you ever invest in anything that doesn't make money? To me that rule still applies today.
5. I have found that the simple rule of putting 100 minus your age in equities worked pretty well for me. Maybe not for everyone, but........
6. Research and analysis. When investing, I tend to get into stocks which I think have good products that I like. Before getting in I research it to death too. A Low P/E is often a good indicator. Furthermore, is there a long term demand for the product.
7. The best time often to invest is when everyone is rushing out the door. This is the toughest part, but finding a price bottom, is golden toward finding long term return.
8. Monitor investments and net worth monthly. Research, evaluate, and adjust as needed.
9. Don't fall in love with a stock/fund/etc. so much that you resist selling when the fruit is ripe. Don't forget that your favorite stock is not a family member.
10. Never forget that a SHTF scenario is always a possibility. Remote, but still there. Have a base amount of investments that will address. Metals, Land, etc.
11. Formulate and adhere to three different budget scenarios... (1) Regular (2) Austerity (3) Emergency.
