The simple road to financial freedom/early retirement
You have your own business. Everyone from a toddler upward has one.
You have employees, as does everyone else.
Most business owners must pay their employees.
Some of your employees work for you once, and usually provide something of value when they do. When I tell this story to kids, I tell them that if they send a Dollar out to buy ice cream ... the ice cream tastes good ... and that Dollar (employee) worked for them once.
Maybe they got good value for their money.
As a business owner, you're lucky - if you work it right, your employees will pay you!
As you know, busines owners must learn how to manage their business well, including how effectively their employees work.
If they don't, they may go broke, eventually.
Either you boss your Dollars - or they'll boss you. And in most cases you won't like that much.
Decide to learn how to manage money effectively. Don't let the concept intimidate you - take it a step at a time.
Decide to start doing that ... now. Start today.
Spend less than you earn.
Build an emergency fund - 3 - 6 mos. income on hand eases the panic if you suffer layoff, (especially the permanent kind), substantial illness, etc.
A small amount of money in the credit union/bank is useful - the amounts that you'll need for short-term operation, including some emergencies (though I often don't have such, myself - I can explain the reasons and method, if you ask).
The bank figures to make more on your money than you make, after all. And guess who builds those fancy buildings for them.
Decide how much, what percentage of your income that you want to spend currently, and what percentage you want to put to work for you, short- and long-term.
Every time that you get paid, take the money that you plan to put to work for the short- and long-term out of it, bank it in another account in the short term, to keep it separate.
Learn how to invest it for maximum efficiency.
As for the rest of the regular paycheque ... learn how to live on that amount.
If you use "credit" (really "debt") cards, make sure to pay off outstanding balances in full before the due date.
When you pay them interest on that loan ... you have less to live on, to buy things to serve your needs.
You dropped those employees down a rathole, so to speak, because you were impatient ... you had to have the stuff before you'd earned the money so that you could pay cash for it!
That is - you just gave yourself a cut in salary, until that loan is paid off. Impatience (usually) has a price!
As someone said here recently, I think that it was over at the Kitchen Table, "Maturity is ... learning how to postpone gratification".
Invest skilfully ... help your kids (or yourself) gain that extra education later (even if your deal is that they repay you ... why not you, rather than an outside lender)?
You'll be able to retire early ... I read in my favourite money management magazine a year or so ago about a guy that retired at age 34.
And wrote a book, called "Stop Working! Here's How You Can!". No boss told him that he really should do that!
Retire early - be free to do what you choose.
I welcome your comments.