By Mark Attanasio
When thinking about the path to retirement, we tend to assume a typical trajectory: go to school, get a job and then work tirelessly for the next 40 years. But in reality, there are many different paths to the same destination. Today, many people are opting to find alternate ways to retirement, opting out of the traditional decades-long grind.
Putting an early end to the punching of time cards used to be considered the luxury of Powerball winners. But these days, there are many options for people with the desire to cash out early.
For instance, many people are opting to change the language of work altogether. Instead of going into retirement, many are seeking instead to achieve financial independence—being in a position of having sufficient personal wealth to live without having to actively work for basic necessities.
So how can you achieve financial independence? Here are a few ways to get started.
Put your money to work for you: You may need to work tirelessly early on to amass enough money to start investing. But once you do, make investments that will provide you with supplemental income. For instance, if you opt to invest in stocks, aim for companies that pay shareholder dividends. If you’re going to invest in real-estate, consider a multi-family unit or in-law apartment that you can rent to cover your own mortgage.
If you’re interested in owning your own home but aren’t interested in making it part of your investment strategy, consider joining the tiny house movement. Ranging from 100-400 square feet, tiny houses provide many of the creature comforts of a home—but on a much smaller scale. Ideal for those who simply need a place to hang their hat at the end of a busy day, tiny houses are optimal for anyone willing to go to unusual lengths to achieve financial independence.
Transform passion projects into side jobs: How would you spend your time if you didn’t have to work? If you love to create art, there’s likely a market for your work. If you like to travel, consider becoming a contributor for a travel blog. No matter what your passion project happens to be, there’s likely a way you can capitalize on the hobbies you’re already enjoying.
Live below your means: This is ultimately the lynchpin of financial independence. No matter how much income you have coming in, you’ve got to be willing to keep growing your savings. You never know when an unexpected expense might arise. If you remain disciplined about your spending, you won’t have to start filling out job applications every time you need to bring your car into the mechanic or buy a new hot water heater.
To set out on your own path to financial independence, stop in to a Milford Bank branch location and speak with one of our team members about setting up a strategy that will work for you.