By Mzukona Mantshontsho
July is savings month in South Africa. Someone at 40 years does not have a retirement time horizon of 20/25 years.
Retiring at 65 is completely redundant, people at the age of 80 (Charles de Gaulle) still ran a country like France 30-40 years ago. Donald Trump is 74 odds, so the same with many other world leaders although recently a few young leaders have stepped up but hopefully I make my point. Retirement is a financial milestone, not an age milestone.
Retiring early is a dream we all share. But it doesn’t have to be just a dream! Whether you want to retire at 55 or even earlier, you need to have a retirement plan in place that’ll get you there.
The best retirement plans look at the secrets others who have achieved this before you used to get there. And when it comes to retiring early, there are a few traits of early retirees you should consider adopting:
Save a lot!
Very few people who have been successful at retiring early inherit a vast amount of money or win the lottery. Instead, they spend years saving to increase their stash, plugging away towards their goal until they’ve saved enough to buy their freedom. So, make the types of life changes that can significantly lift your salary trajectory for the rest of your life – things like getting another degree and changing jobs can help.
Understand your spending habits!
Most of us don’t realise how much those small, unnecessary spends add up to every month. But speak to someone who has achieved financial independence or managed to retire early, and they can tell you where EVERY cent they earn is spent. Start tracking your expenses. You will soon discover tonnes of small areas in your life that you can stop spending on, without changing the way you live.
Have an investment plan!
There is no way you are going to live off your life-savings for the next 30 years. Inflation will mean this money is worth next to nothing. To retire early and live-in comfort, your money needs to work for you. By learning about investing, you will be able to increase your wealth much faster than if you just stick everything in a savings account thinking that it is the safest place to put your money. So, pay attention to these three factors in your retirement planning.
Mzukona Mantshontsho is the founder of Nyakaza Media Solutions. Nyakaza Media Solutions is an organisation that was established to help community organisations, business entities, and schools to research, write, document, report, analyse, edit, publish newsletters or bulletins in hard-copy, on-line and maintain websites with the relevant content as per the editorial policy of that organisation, school or entity.
Nyakaza Media Solutions has a vision to promote and bring dialogue to communities, businesses and schools about issues that affect them.
Nyakaza Media Solutions is on a mission to develop and encourage communities, businesses and learners to celebrate the good, applaud excellence, welcome growth, strive to be better individuals, businesses and communities, want more knowledge, discourage bad and counter-productive behaviour as well as communities, businesses and learners that want to be great SOUTH AFRICANS.
Nyakaza Media Solutions is making use of Yo School Magazine as a platform that learners in all schools to make use of to write their stories.