Young Negotiators

If you in your 20 or 30 something and still don’t know when is that you are going to be rich, still no idea when is your bog brake coming HEY! wake up and smell the coffee this is the time for us to make to next step. Let’s be smart if you see an opportunity take it don’t worry if you fail try again ad again and agin until is necessary. Guys now is the time for us to jump around an see in what is that we are good at, what is that we enjoy to do, how is that we are going to make it. I’m not rich, let me re-phrase that I’m not rich yet. Let’s follow this advice and tips on what we should do to make this happen…  Read This…

How to Retire in Your 30’s

I was reading the “how to” section on My Google the other day when I logged on and saw a link that promised how to retire in your 30’s. Knowing that such a promise is ridiculous except for a very, very, very small fraction of the people out there, I clicked through for some amusement. I wasn’t disappointed. Here are their tips on how to retire before 40:

• Define the dream, while documenting the reality.
• Make a LOT of money.
• Lower your expenses.
• Invest wisely.
• Keep your eye on the mark.

Wow. This is really revolutionary stuff. Think Money magazine is aware of this wealth of knowledge? Maybe I could use it to write my own guide to early retirement. It would go something like this:

• Earn $10 million by age 39.
• Spend only $1 million up to age 39.

I’m a genius!!!!!!!!

But wait, there’s more from this piece. They give some additional tips — some of which are good. Let’s look at them one at a time (in green below):

While you will almost certainly want to work somewhere like New York or San Francisco while you are earning your retirement, it is entirely impractical to retire there. Your goal is to sock away savings while living in an expensive city, then move somewhere cheaper. There are plenty of wonderful, affordable places to live in the US, or you can reach your retirement level even faster by moving to a cheaper country. There are entire colonies of retired Americans in cities like San Miguel de Allende, Mexico.

I’d suggest a bit of a different strategy if you want to maximize your retirement savings including:

Both work in and retire to a lower cost-of-living city. Believe it or not, there are great-paying jobs outside of New York or San Francisco. Your goal is not to sock away savings while living in an expensive city, then move somewhere cheaper, but rather to live in a place that maximizes your income potential less your cost of living (and that you enjoy, of course).

I do like their idea of retiring in a foreign country. Lots of advantages to doing this, especially for those people who want to live the high life but don’t quite have the high life savings stashed away.

Consider the single life, at least until you retire. To achieve an early retirement, a period of sacrifice and hard work is mandatory, and finding a partner who shares your ambition sufficiently to make that sacrifice will be difficult. Furthermore, finding someone who shares your vision for geographic relocation and kids, and will maintain that vision, is doubly difficult. You can pursue relationships at leisure once you are retired, and you will have more time and energy to focus on your career while you are earning.

I’m trying not to burst out in laughter here. Obviously, this is not from a serious financial site.

In fact, the opposite of what they imply is true. The stats show that married people have higher net worths. If you’re really intent on retiring so quickly, why not find a like-minded mate who’s pulling down $250,000 a year like you are and then you can really save up the big bucks?

Consider not having children. This approach to early retirement almost certainly rules out the enormous expense of having and raising children. This is a decision you will need to make carefully. If you decide in haste, it may be a decision you come to regret.

The wisdom flowing from this piece is almost unbearable.

Yes, it’s true that kids cost a ton — up to $250,000 BEFORE college costs are factored in. But it’s also true, and any parent can tell you this, that kids are more important than money.

Finally, the piece does give some decent advice that I can agree with 100%:

The #1 reason people in high paying salaried jobs are still working hard when they are fifty is because they can’t keep their spending under control. To soothe their agony regarding their dull, demanding job, they placate themselves with toys that fail to make them happy: a penthouse apartment, a fancy car, a diamond ring. Resist the massive pressure to dress, eat and shop like your peers, and live a modest lifestyle.

Yes, spending less than you make is the way that almost anyone can become wealthy. And no matter how much you earn, if you spend more than that, you’re going backwards. via www.freemoneyfinance.com