A very dear friend lost his job last month. Currently he is taking his wife and their two children on a trip around the world, instead of looking for a job. The truth is, he doesn’t really need to look for a job, he is financially very secure. He started working at the age of 15 and followed the 60:40 rule. Save 60% of the money he earns and spend only the 40%. By the time he finished his Engineering degree, he owned his own 2 bedroom house. He is 42 years old, owns a fully paid home and two investment properties that bring in a good rental income and he can live on the rent for ever without having to work. ( He didn’t take a single dime from his parents ever since he started going to Uni )
My mother’s aunt adviced my mother to save 100Rs/month from her salary the day she started working. If my mother had followed that advice, when she retired she would have been a millionaire.
I don’t have time to work it out, but quick maths shows, if you started with 100$ and invested 100$ every year and the interest is 10% ( bit high, but easy to work with) at the end of 5 years, you will have $639, 20 years $ 6500, 40 years it will be $ 58,827.
Financial independence is pretty easy if you are very careful working with the money you have in your hand.