Here is my entry for Problogger’s “How to” competition, hopefull I am not too late.
How to retire young and wealthy:
I started my blog with this title nearly two years ago. Although, I am not quite there yet, I am fairly well done the path from where I was two years ago. Here are some of the principles I follow and have done pretty well for me:
– Save a part of your income every month. It sounds obvious, but often people kid themselves that by not buying cafe lattes everyday they will have this surplus income every month. Commit to a certain amount of money and put it away where you cannot touch it, at the start of every month.
– Invest your savings in quality investments that cannot easily converted back to cash. Personally I have done well investing in property – steady income, nice capital gains.
– Create multiple sources of passive income. With a little bit of effort, this can be done while you are still working, so you are not totally reliant on investment income. Ebooks, affiliate income and Adsense are all good potential sources.
– Only use a credit card to pay for web hosting and emergency purchases. Wait at least a week before buying any new gadget to think over if you actually need the item.
– Live a relatively frugal life, but don’t skimp on self-education, hobbies, books, socializing with people with similar goals and travel!