Are you currently taking college courses? Do you ever wonder what your future will be like when you graduate?
Most college students don’t even think far enough ahead to picture what their lives will be like when they start working.
Still fewer yet even think far enough ahead to consider where they will be in their 30’s and 40’s. And, virtually no students are saving for retirement while they are still in college. Yet, if they did, they might be able to retire far before any of their peers. And I’m not talking four or five years before, I’m talking about 30 or 40 years before! It is all possible, but only if you start planning now.
Living as if you have no money in college is really easy….because you literally don’t have any money. However, when you graduate and begin your careers, you begin making major purchases like a nicer car, fancy furniture, and a large glorious house. Typically, these purchases come in the first couple years of your career, but they can stymie your retirement for more than 30 years. However, nobody thinks this is a big deal because people don’t retire until they are 65 years old anyway….right? Wrong.
Believe it or not, there are people in this world that retire at the age of 30. They come out of college living simply, save up their cash, and then peace out incredibly early because they don’t mind living simply and can easily live off their pile of cash for the rest of their lives.
So what does this mean, living simply? Let’s say a couple gets married right out of college. They have worked hard while in college and were both able to get their degrees without taking on any debt. Between the two of them, they land jobs that are earning a total of $100,000 a year ($70,000 after taxes). They rent a small apartment that is close to both of their jobs so that they only need one car, and they both ride bicycles whenever they can. Instead of paying $200 a month for cell phones with an unlimited data plan, they each have a dumb phone and only pay $30 a month in total. By living simply, they are able to get through each year on only $20,000 and therefore save $50,000 every year.
By continuing to have no debt and by investing their money, they are able to amass $600,000 after only 8 years of work. Since they only need $20,000 a year to live, this $600k is more than enough to live off of for the next 50 years if they want to (and they can of course earn additional money on their own if they want – they do not have to sit inside and just stare at each other every day).
Retirement Has Nothing to Do With Age
Does the plan above sound good to you? If it does then go for it, and realize that retirement has nothing to do with age. You just need an adequate amount of money in the bank and the mental preparedness to handle not working a traditional job.
Once you can wrap your head around the fact that such extreme saving is possible, and that you can still have a ton of fun on $20,000 a year! You can travel, enjoy your hobbies, spend time with family, and most importantly, you can slow life down and enjoy every minute! You do not have to earn $100,000 a year to make the most out of life. No sir, the quest for a large salary can actually decrease your quality of life. Check yourself and question what you would like out of your life.
Are you ready to start planning for retirement? If you are not a student anymore, when did you start saving?