Habits that help many self-made millionaires retire early: Live frugally but still travel-Young

Self-made millionaires have many of the same habits that help them achieve financial freedom and retire early.

The article is shared by Business Insider’s Hillary Hoofer:

FIRE (financial freedom, early retirement) is a growing movement in many countries around the world. I’ve talked to many self-made millionaires who retire early and have found that they share many of the same habits.

Of the people I’ve come in contact with, some have achieved financial freedom in their 20s and others in their 40s. Regardless of their age, they are called early retirees. However, this is something not everyone can do.

Here are the financial habits of the self-made millionaires retiring early:

Assess your personal financial situation

Leif Dahleen is a 43-year-old retired blogger. According to him, everyone who plans to retire early takes the first step of doing a self-assessment of their financial situation. This includes keeping an eye on your assets and figuring out how much to spend each year. After retirement, they still do not forget to do this to avoid falling into an unexpected financial situation.

Save

Joe and Ali Olson, teachers who retire in their 30s, have implemented a number of savings strategies that allow them to live on just $20,000 a year. They use old cars and often cook at home.

Meanwhile, Angela Rozmyn, who plans to retire early, has reduced her monthly food spending by limiting eating out for more than two years. In addition, she also buys second-hand goods or even asks for items that other people don’t use anymore to save money.

According to these people, you should save and invest before paying other fees and spending as you like.

Reduce housing costs

According to many self-made millionaires who retire early, reducing housing costs can save you hundreds of dollars a month. Use this money to invest in more profitable things. Another way is to move to a place with a lower cost of living so as not to waste money.

Diversify your income

Planning for early retirement is not only about spending less, but also earning more. A self-made millionaire shared: “You can’t always cut your spending, but you can make more money. Early retirees often find ways to diversify their income through travel. work more or learn new skills to get a raise or promotion”.

Spend less after retirement

Kristy Shen and Bryce Leung, who retired at the age of 31, have traveled the world over the years and earn more than $30,000 a year.

“Most early retirees don’t spend a lot of money after retirement because they don’t need things like working full-time like clothes,” Leung said. Therefore, after retirement, money isn’t a thing. It’s a big motivation for them too. Instead, they value the value of time more because it is finite to each person.”

Many people say that they have begun to form beneficial habits such as walking, meditating, playing chess or reading. Participating in physical activities helps them have better health because, after all, it is still the most valuable asset of a person.

Travel

Many self-made millionaires decide to set out to explore the world after retiring early. For them, experience is equally important in life after retirement. Of course, they still find a way to make that trip as cheap as possible and even earn a certain amount of money to cover the cost.