Wednesday, 25 April 2018

Start achieving financial independence in your 20s and 30s

April 25, 2018

Most of us dream about being wealthy at certain age. However, most of us don't really have a "plan" to get there. Often we found ourself approaching such age but the wealth we used to dream of is nowhere to be seen. To make the case even worst, many of us find our living expenses increased to a level we did not anticipated when we were younger. Things like increasing medical expenses, unexpected raise of living standards such as an expensive smart phone for every single family member and increasing education tuition fees can really spin us off track!

I know a few friends who feel rather regret that they believed that life was simple and they did not wanted to be caged by the mortgage and wanted to enjoy life as early as possible. These friends shared one commonality, they gave up when they were young. Their refusal to save money but instead to spend them to be happy at younger age actually was a result that they did not see hope at the time. So instead of going through the hardship and discipline of planning, savings and investing they chose to spend a bit too much or they relaxed a bit too much in advancing their career to earn more. In simple terms, these friends often either lacking the courage to confront the challenges at the time or naively believing that they could keep life simple and relax. Let's face it, in reality, your financial well being is very important. It directly impact your health and happiness in many cases.

Of course I don't mean to push yourself to hell everyday and make yourself feeling terrible to make money. That too is not sustainable. You ought to enjoy life, every single day of it, to be living and to be human. You ought to be happy, healthy and motivated so you can win every small challenges as they come. The answer is balance.

Make a plan that is comfortable. No matter how small a savings you can achieve it's a progress. You do have to do very long term investment. In my case, I was too greedy on short term wins. I was not losing money and I was profitable. However, if I focused on the longer term investment, my profit would have been at least double or even triple. The power of 20 to 30 years investment is not to be underestimated!

I won't border you with details on every single aspect but I like to stress the importance to have a practical balanced plan and the courage and discipline to execute it one step at a time. Don't be greedy and set target that is too far away. Do it one step at a time. Over time as you achieve your short term goals, I am certain that your capability will grow and your path will be on an accelerated path.