| There are unlimited ways to retire young. I am going | | | | Property can be purchased using negative gearing. |
| to advise you of just some of them. I am assuming | | | | This is when the loan and holding costs are greater |
| that you have not been lucky enough to have | | | | than the income. This can be used to your advantage |
| received a reasonable inheritance and that you are | | | | if you have a good income from a job or business. |
| starting from the beginning. I will include job/working | | | | Eventually the rents will catch up to the costs and |
| business, automatic savings in some form, budgeting | | | | you will receive a positive income. The alternative |
| below your income level, use of personal debt, | | | | way is to buy positive income property from the |
| automatic savings in some form and buying cash | | | | outset. This can be more difficult as these properties |
| producing assets such as real estate and shares. As | | | | may break the rule which I mentioned earlier; of |
| you "grow" your equity, that part which you actually | | | | buying "real estate in high demand areas". Therefore, |
| own, I feel sure that if you are focused, you will find | | | | capital appreciation can be much slower and will limit |
| many other ways to add to this figure. The first | | | | your ability to buy more assets. |
| hurdle to overcome is to decide on your goals and | | | | Shares are another way to accumulate wealth. There |
| set down on paper the quantities that you would like | | | | are many ways to prosper from them, but there are |
| to reach and by which year. | | | | also as many ways to lose your money. Shares tend |
| The highest rewards from "a working life" will be | | | | to have a higher risk factor than real estate. The |
| gained by working in an area in which you are | | | | average person usually has more knowledge of real |
| passionate. The best rewards in terms of dollars may | | | | estate. Without a lot of knowledge of shares, the |
| come from your own business, as in this regime you | | | | safest way will be to buy blue chip shares which pay |
| have the chance of paying the lowest amount of | | | | dividends of at least 5%. You should hold these |
| tax. The greater your income, the easier it may be | | | | through the "ups and downs" of the business, |
| to save, but you must organise this to be automatic, | | | | economic and share market index cycles to |
| and not rely on saving from what is left over at the | | | | eventually have an income. You will accumulate the |
| end of the pay period. | | | | highest number of shares by using dividend |
| Have a definite figure deducted into a bank account | | | | reinvestment, rather than taking cash. This will also |
| each pay period. Make it a high interest savings | | | | then provide you with an income. It is possible to |
| account (maybe online). Also, have automatic | | | | increase your returns by having a Margin Loan. This is |
| salary-sacrifice into superannuation. This will save tax | | | | similar to "gearing" for property. Due to the greater |
| and ensures that you are automatically setting aside | | | | risk with shares, institutions will not usually loan as |
| money for the future. | | | | high a "loan to value" percentage as with property. |
| To assist with saving the highest amount, resist | | | | The balance between borrowing funds to buy |
| taking on personal debt. This is debt for cars, | | | | appreciating assets requires you to be vigilant. It is |
| furniture, clothes and anything which decreases in | | | | easy to buy them and find that your cash flow is |
| value over time. It can be in the form of personal | | | | very poor. Your cash flow must always be such that |
| loans, higher purchase and probably the worst culprit, | | | | it allows you to retain the appreciating assets. It can |
| credit cards. The only debt that you should ever use | | | | be a backward step to have to sell off an |
| is for appreciating assets such as real estate, shares | | | | appreciating asset, although occasionally it is |
| and for business. Cars often require the highest loan | | | | necessary. This was the case for many in the recent |
| next to that of your home. Cars also have the | | | | World economic crisis. |
| greatest and fastest decline in value. Always spend | | | | There are so many other ways of investing for the |
| the minimum possible on them. A lot of the money | | | | future. The greater the return gained on your |
| which we spend is on items that we do not require, | | | | invested capital, the greater the risk of losing your |
| and can easily do without. We often purchase them | | | | investment capital. Alternatively, you must be mindful |
| because of the challenge and from boredom. | | | | of "nothing ventured, nothing gained". |
| After you have saved a deposit, buy real estate in | | | | I have advised you of just some of the ways of |
| high demand areas. This does not need to be the | | | | "How to Retire Young". There are unlimited other |
| home you live in, but it can help to increase your | | | | ways. To guarantee this result, you must write down |
| equity and could be the most practical way. When | | | | on paper or on your computer the income and asset |
| you have some equity, use this to borrow to buy | | | | figures that you wish to achieve, and particularly |
| investment properties. Buy properties which require | | | | have written down your target age. Read this each |
| renovating or lend themselves to some form of | | | | and every day and write down a plan of how you |
| improvement such as adding a garage, bedroom or | | | | are going to achieve it using my suggestions of job |
| bathroom. The more appreciating assets that you | | | | working/business, budgeting below your income level, |
| own, the younger you may retire. You must try to | | | | limiting your use of personal debt, automatic savings |
| accumulate these as early in your life as possible. | | | | in some form and buying cash producing assets such |
| Obviously, to get started, you must have some form | | | | as real estate and shares. Anyone on any income |
| of savings or equity to make you attractive for the | | | | level can "retire young", but you must make this |
| banks to grant loans to you. Do not be afraid to | | | | uppermost in your mind and never waver from your |
| borrow money for appreciating assets, as it is not | | | | resolve to achieve it. I feel sure that by instigating |
| possible to save these amounts of money. This will | | | | these measures you will "Retire Young". |
| also provide you with the best tax claiming situation. | | | | |