Retirement at the age of 40 is almost a “daydream” for those who spend 30k drinking milk tea every day.

Working life has become especially stressful in this day and age, where KPIs, peer pressures are everywhere,… This is why more and more young people are planning to retire in age 40, to enjoy the rest of their lives without worrying about work.

It sounds tempting, but it takes discipline and sacrifice – and a lot will depend on your lifestyle in your twenties and thirties, including bubble tea drinking.

Many people think that drinking milk tea every day will only retire at the age of 40 in a dream, why should it be?

Retirement at the age of 40 is almost a daydream for those who spend 30k drinking milk tea every day - Photo 1.

Is it possible to retire at 40?

Financial experts believe that it is possible to retire at 40 but it depends on your income, financial strategy and especially frugal lifestyle.

Helen Morrissey, senior retirement analyst at UK firm Hargreaves Lansdown, believes such early retirement could mean “significant financial sacrifices both while working and in retirement”. That would be extremely difficult for anyone including the wealthiest.

“Average life expectancy around the world has been increasing for many years now, you’ll probably live to 80, or even longer. So you need to think about saving and investing for 20 years or so to see if you’re going to live to the age of 80 or even longer. you need to live for more than 40 years. You need to think about the life you want in retirement and how much it could cost.”

How to retire at 40?

According to Nilay Gandhi, a certified financial planner and senior financial advisor at Vanguard Personal Advisor Services, retiring early requires extremely thoughtful planning — and the first step is understanding what you want in life. how to live.

Imagine what retirement would be like in different decades. For example, you may plan to travel more in your 40s and 50s, with plans to slow down and live in the countryside. You will need a specific plan to get there.

Understanding what you’re trying to achieve in early retirement can help you better understand what it takes to financially plan for different periods. Set goals, develop a plan, and be disciplined in that plan, no matter when you plan to retire.

The next step, according to Gandhi, is to understand your current expenditures and predict future ones. “You’ll need to plan early and choose carefully what you’ll spend your money on.”

Retirement at the age of 40 is almost a dream in the middle of the day for those who spend 30k every day drinking milk tea - Photo 2.

It is important to have a backup plan. Gandhi shared: “Many people may find that even if they don’t meet their drastic goal of retiring early, they can still create enough grounds to feel secure. It’s important to have a backup plan and stay in touch. financial security”.

Morrissey explains that investing is the best way to ensure your income grows enough to give you a decent amount of money to live on in retirement. However, you need to be on the lookout for stock market fluctuations that can cause your property’s value to drop. Besides, you also have to bear the impact of inflation, which can destroy your ability to make money.

Why drinking 1 cup of 30k milk tea a day can prevent you from reaching your goal of retirement at 40?

As mentioned above, to be able to retire early you need to have an effective financial strategy and pay special attention to how to accumulate money. A financial expert once stated that, if you only need to drink 30k less each day to drink milk tea, after 40 years, thanks to compound interest, you will have 2.4 billion VND. You can easily dismiss this, but there is a clear truth that “small accumulation becomes great”.

You can think that there is nothing wrong with a cup of milk tea to reward yourself after a long tiring day. Some early retirees, however, agree that the first step to achieving financial freedom is to track spending and limit wasteful spending. After all, “you have to know what you’re spending to be able to plan for retirement,” including, of course, small expenses like bubble tea.

Retirement at the age of 40 is almost a daydream for those who spend 30k drinking milk tea every day - Photo 3.

Plus, knowing how to spend means you’re identifying what value you’re getting for every dollar you spend, and where you can focus your efforts to further reduce costs to hit your vacation goals more quickly. early retirement.

If you want to settle down soon, it’s time to stop living the ceiling your income allows. If your income increases, don’t increase your spending, such as for bubble tea, move that money straight into savings.

Of course, each person will have a financial goal. But if it is early retirement, you will have to limit as much as possible the small, seemingly insignificant expenses, but the total province is incredibly large. Get rid of the “desired” items or petty expenses that “eat away” your wallet.

It’s the same in the savings story, if you “accumulate” to spend more on seemingly small items, after only a few years, you will realize that it is a huge number. giant. For example, every day 1 cup of milk tea 30k, ie 1 month will spend 900k, 1 year is 10.8 million VND – a not small number, not to mention the opportunity cost you lose to this “money” make money”.

According to RIKA


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