We earlier stated that the power of leverage will be treated using three major sections, and we briefly mentioned the leverage of the mind in section 1. Quickly go back and review the earlier posts to enable you catch up on the important lessons to be learned..
SECTION 2: The Leverage of Your Plan
Investing is a plan and if you must retire young and rich then you must have a plan. Even if you have nothing now it doesn’t matter. This plan must have a timeline and when it should end in other words there must be a time limit. It could be 10 years or more but the minimum should be ten years.
It should state clearly how much you would be earning annually without having to work after your retirement. One of the many advantages of retiring young is that it will give you ample time to now get rich this is because one of the problems with having a job is that it gets in the way of getting rich therefore retiring young would provide you with the opportunity to grow rich.
So many people have a plan to be poor that is why they say ‘when I retire my income will go down’ that’s another way of saying ‘I plan working hard all my life and then get poorer after I retire’. That may be ok during the industrial age but that’s a very poor plan in this information age. Unfortunately this is the plan of millions of people today including those working very hard today and making a lot of money. This is because they are setting nothing aside for tomorrow.
This is why we need to start teaching financial literacy in our schools, we need to start teaching our kids to take care of themselves financially instead of the current practice where we take care of them till they graduate from university. We also teach them to expect Government and Companies they work for to take care of them when they retire. If you want to retire young and rich, you will need a better plan than most people have therefore this section will treat in details the important leverage of having a PLAN on how to retire young and rich.
Do not miss the next section where we will be focusing on the third form of leverage
Ensure you share your thoughts on what you have learnt in writing or share through video post on our Facebook group ‘Retire YOUNG Retire RICH. Join our Facebook group here https://web.facebook.com/groups/RetireYOUNGandRICH/
Review and reference from Rich Dad’s “Retire Young Retire Rich”