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How to Develop Financial Discipline and Retire Early

Today there are more opportunities than ever before to achieve wealth and prosperity.Achieving financial stability should be a primary goal.

how-to-develop-financial-discipline-and-retire-early

What is Financial Discipline

Financial discipline means managing your savings and spending in conformity with the goals that you have set. Depending on the plan that you have, whether it is buying a house, education, or early retirement, you have to make a budget and start saving from an early age. We live in an age of conspicuous lifestyles and it is very difficult to maintain financial discipline. But if our goal is to be financially stable, we need to curb the urge to spend on things that we have not planned on in our budget. We should practice living within our means or under our means and saving a maximum part of our earnings and invest smartly, to achieve financial stability in later life.

how-to-develop-financial-discipline-and-retire-early

Tips to Achieve Financial Discipline

  1. Unnecessary spending: Don’t spend on things you don’t need. Avoid going to discount sales because we end up buying things we don’t need most of the time at these sales. Buy only what you need.
  2. Minimalist Living: Millennials today are going for minimalistic living with a goal of retiring early or buying a house. They try to lead a simpler, uncluttered life and save big time.
  3. Set up your financial goals: Set up goals on the amount of money you want to save over a particular period of time and for what purpose.
  4. Automatic transfers: Enable automatic transfers from the primary account to deposit or saving accounts every month so that you may not be tempted to skip the payment.
  5. Budgeting: Create a budget of the income the expenses that you may incur and the amount you can save. Be realistic and start with small amounts and recognize the areas you can save in.
  6. Buy wholesale: Buying wholesale can cut costs as there would be quite a difference in the wholesale and retail prices. Make a list of all the items that you need for the particular month and purchase them from a wholesale store.
  7. Transportation: Take public transport than your own vehicle as you can save a lot of fuel in the long run. Walking small distances is a good idea as it is good for your health and saves the fare too.
  8. Unsubscribe emails and notifications: emails and advertisements from marketers may tempt you to buy something that you really don’t need. So it is best not to subscribe to such emails and notifications.
  9. Avoid medical bills: By avoiding unhealthy lifestyles like not exercising, eating junk food, addictions to alcohol, cigarettes, and other substances you can save on the medical expenses on account of lifestyle diseases.
  10. Visualize your financial goals: By visualizing yourself achieving your financial goals, and following good financial principles you can envision a stable future that motivates you to save more.
  11. Avoid using a credit card: It is very easy to spend unnecessarily using a credit card, as we don’t have to pay immediately. A debit card is better as you will have to spend only the amount that you have in your account.
  12. Always upgrade your skills and learn new things: Upgrading your skills and learning new things related to your profession will help boost your career and enable you to progress upwards in your career and earn more.
  13. Save in systematic investment plans: Long term systematic investment plans earn well. Even small amounts, when saved for long periods, can yield good returns.
  14. Learn on financial matters: with free courses and free e-books. There are a lot of on-line courses which can help you learn a lot.
  15. Avoid status symbols: People waste a lot of money for maintaining their status and look well off like a big car, costly watch, and costly, branded clothes that cause a huge dent in your earnings. By avoiding these you can save a lot.

Habits to Build Financial Discipline

  • Write down your thoughts on long term goals of building wealth: It helps with clarity on the strategies needed and direction you plan.
  • Utilize free time constructively: During the time that you get on weekends, after work, focus on building skills instead of consuming content. Practice reading a book instead of watching TV. Limit spending time on social media and do something constructive and useful.
  • Take a step back and focus on life goals: Going on long walks helps to clear the cobwebs in the brain.
  • Fill out a calendar with things to be done: Stick to a routine, time to wake up, time to spend with family, time to work. Meditate, or exercise to clear your mind.
  • Networking to succeed: Connect with people who are driven to achieve goals and found success with their hard work. Take tips from people with financial discipline.
  • Make resolutions to achieve your financial goals: By making them a part of your discipline goals you can ensure that you follow them.
  • For more tips on building discipline, follow my hub: https://hubpages.com/health/How-To-Be-More-Disciplined-In-Life
Retire Early And Explore the World

Retire Early And Explore the World

Early Retirement-Advantages

Nowadays the Millennials plan for early retirement. The advantages of early retirement are you get to enjoy life and live your dreams while still young and healthy. You can travel around the globe and pursue your passions without the fear of expenses. For this, you need to build up a retirement corpus so that you can live comfortably and with the same standard that you used to when you had a steady income, at the same time have a surplus to be able to travel and enjoy life the way you had planned. So here are some tips to save for your early retirement:

Tips to Save for your Retirement Fund

  • Plan the savings and investment goals early, right after you start earning.
  • Keep track of your financial goals and monitor the progress.
  • By living below your means you save a lot.
  • Living near the workplace and in areas that cost less can help save a lot.
  • Calculate the expenses and check the areas where you can reduce the expenditure.
  • Invest the savings every month in Stocks, bonds, retirement accounts and real estate that yield income.
  • Avoid eating out and going to parties as they can affect your health and cost you a lot in medical bills.
  • Try out parallel jobs like consulting and coaching to enhance your income.
  • Taking the help of a financial advisor will be very useful to plan the finances.
  • Do not touch the accounts meant for retirement savings. Early withdrawal can lead to heavy loss.
  • Have a back-up plan of self-employment options or other business schemes so that it will provide secure income in case the retirement savings are not sufficient and also to keep you occupied in the spare time.

Final Thoughts

The tendency of youngsters is to spend all the money they earn and enjoy life now. But given the uncertainty of life, we may not get the chance to enjoy and live our dreams being stuck in the daily grind of life. If invested properly money can grow and help in the long run than if you spend it. So with proper planning, frugal living, saving and investing wisely from an early age, the millennials can plan early retirement and enjoy life and live their dreams when they are still young and healthy.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 VIDYA D SAGAR

Comments

VIDYA D SAGAR (author) on October 05, 2020:

Dear Shridhar, thank you for the visit and the insightful comments. What you said is so true of youngsters today. They lead a status-oriented lifestyle and indiscreet spending aided by attractive offers and discounts. They believe in enjoying life now and here rather than save about an unknown future. Fiscal discipline is necessary for a worry-free future as you have mentioned because we cannot predict when the need arises due to the uncertain times that we live in. Abraham Lincoln's quote is so relevant today.

Shridhar Kaikini on October 05, 2020:

Your erudite article is a great resource for learning about the much needed aspects of financial discipline, and more so, the article resonantly echoes the early-retirement sentiment of the millennials today and the guiding tips to build up a good retirement corpus. But I dare say, today's youth may frown on these tips with the widening gap between income and outgoings, thanks to status oriented lifestyle and indiscreet spends, tempted by discount offers and online shopping, happening just with the click of a mouse! But, I strongly feel that your enlightening and erudite article can have a good learning impact on them to achieve their goals.

Through this article, I for one, imbibed the essence that the cost of fiscal discipline will always be less than the price of regret of indiscreet overspends. Thus, fiscal discipline is the biggest investment for a happy and worry-free life!

The punch line that I gather from your article is that the distance between 'what you want now' & 'what you want most' is "ENOUGH"...... and " Enough is a decision, not an amount! " (Quote by Alison Faulkner).

Once Enough means, you draw the firm line, to ensure that you don't go overboard!

All in all, your article is written in a holistic manner, covering all details aspects inherent to financial discipline and planning, with proper guidance for those seeking early retirement!!!

Hats off Vidya, a great learning experience in one go through your article here!

Pray continue to write so and enlighten us!

VIDYA D SAGAR (author) on September 08, 2020:

Hi Indra Prasad, thanks for visiting and for your kind comments. I am happy you liked the article. Youngsters today need to plan and save from an young age. There is so much uncertainty and risk today. One should be prepared for any eventuality that life may throw at us.

Indra from India on September 07, 2020:

Really a good article and have a lot of lessons

VIDYA D SAGAR (author) on March 11, 2020:

Thanks Flourish. I am so happy that you followed many of the tips mentioned in my article and were able to retire early. Now you are able to follow your passion of writing. Many of the youngsters do not realize this today. Have a great day.

FlourishAnyway from USA on March 11, 2020:

I retired at 42 following many of these pointers. I’m very happy.

VIDYA D SAGAR (author) on January 15, 2020:

Hi Hemant, thanks for the comment. Yes today's generation earns well and spends big. They believe in enjoying life today and now, so this is sort of a gentle reminder for them to think of the future as well.

Hemant on January 15, 2020:

Very precise Vidya.

But, there's a lot of gap between reading this article and actually putting it in practice, especially for the younger generation.

Today's generation earns big and spend much more than what our generation did.

Keep it up Vidya, continue writing.

VIDYA D SAGAR (author) on January 14, 2020:

Thanks Smita, Chitra, Smriti for the comments. What you said is correct Chitra, it is tough to continue working till retirement given the stress levels in today's work culture. Retiring early may be a voluntary choice, but sometimes may be necessary for health reasons.

VIDYA D SAGAR (author) on January 14, 2020:

Thanks Geeta, I appreciate your positive feedback. It inspires me to write. I hope the tips motivate the younger generation to save from an early age.

Geeta on January 14, 2020:

Very well written article about job, savings,investment health and retirement,younger generation can make best use of these tips beautifully explained by you Vidya.

Keep writing

Smriti on January 14, 2020:

Very beautiful written. This will help me a lot.

Chitra on January 14, 2020:

Very good article which youngsters should read and give a thought of budgeting, saving. Looking at the stress level in jobs now one cannot pull on till retirement. So for early retirement should follow the tips given by you. Thanks

VIDYA D SAGAR (author) on January 14, 2020:

Thanks Jyotsna, I am glad you liked the article, yes I now wish someone had guided us when we were younger about Minimalist living and saving for the retirement years

Jyotsna Nadkarni on January 14, 2020:

Very good enlightening article. Hope maximum youngsters read & heed ur tips. V much needed in today's scenario where youngsters do not think of their financial future & want to just live & enjoy in the present. Thank u !

Smita Ugrankar on January 14, 2020:

You have explained very nicely Vidya. Hope the younger generation will read and make use of the points you have explained and will have a better future.

VIDYA D SAGAR (author) on January 12, 2020:

Thanks Deepak, I appreciate your comments, yes I hope some of the youngsters will get inspired by my article and start saving early.

Deepak on January 12, 2020:

A very good article on financial discipline. You have given very good tips on saving for early retirement which today's youngsters should follow.

VIDYA D SAGAR (author) on January 12, 2020:

Hi Liz, thanks for the comment. From one point of view it is good if the retirement age is increased, as people who are genuinely interested can continue to work but on the other hand it seems not fair that the younger generation be deprived of job opportunities. So it is quite a tough situation and difficult to decide.

Liz Westwood from UK on January 12, 2020:

Early retirement is the goal of many, but in the UK state retirement age has been raised. In France there have been strikes opposed to raising the age of retirement. This article has many helpful tips.