Why Do You Want to Retire Early?

In order to be motivated for the long term to take care of your financial freedom and retire early, you should know exactly why you want it and what advantages this has for you.

For many people, finance is badly neglected and they do not care about their finances at all. Hardly anyone knows how much he spends on a monthly basis. Almost no one has the right strategy. When the account has been overdrawn again, people may be motivated to change things in the short term, but this motivation quickly disappears.

For this reason, it is very important to ask what are your own motives for being able to retire early, or generally for a more intense study of the topic of money. Everyone has to find out for themselves, because everyone has their own individual motivation for it. Often this is particularly difficult if you have not dealt with the issue of finance at all. That’s why I’d like to explain to you why I find financial freedom so worthwhile as a goal.

Self-determination and freedom

For me, the biggest motivation for Financial Freedom is the self-determination and freedom I get from it. So I am no longer dependent on working to earn money. Of course that does not mean that once I’m financially free, I’ll never work again. The only difference is that I can stop working at any time if it’s not fun anymore or if I want to do something different. What do you think, how big the impact on your satisfaction will be, if you work, but know exactly that you can quit anytime, if you have no more motivation?

There are far too many people in our society who do not like or even hate their work, but are dependent on money and therefore go to work in a bad mood every day. I do not want to be so heavily dependent on money that I can not even stop doing a hated job to find something else. You do not necessarily have to be financially free, but you should have at least a little financial protection to bridge the transition.

In addition, I would like to have the freedom to decide for myself if and when I retire and how much money I will have at my disposal. If I rely solely on the pension from the state, then I do not know exactly when I may go into retirement and if this pension then comes to life. There are already massive problems today and they will continue to increase in the future. Maybe then when I meet the criteria there is the pension at 70 or even later, from which nobody can live reasonably. Here, too, I know enough people who are just waiting for them to finally be able to retire and, for example, have to wait “only” four years. I never want to get into this situation, because of my financial situation I have to do something I do not want.

In addition, there are other areas outside of work, but I find that these ideals are best understood in this broad area.

Would you like to be financially free and if so, what are your motives? To retire early, or something else?

Why saving is so important?

Before we think about why saving is so important, we should first define what saving is all about.

Many will probably think that there is not much to define because it is obvious. The fundamental meaning is that money is not spent now but later repealed for a specific purpose. There are different ones:

Consumption savings

This is probably the most common and for many people the only way to understand what the purpose of “saving” is all about. Here, money is covered to buy something later, often more expensive items such as a camera, a vacation or a car. In the process, part of the purchase price is often saved money and sometimes also a loan is taken out for the remaining balance. Here it is already apparent that the saving of consumption does not help one to become financially successful.

Renounce savings

This type of saving is usually found with people in a financially tense situation. So, it may be that the situation is aggravated by a larger bill, the situation asks for things that must be renounced to to pay already existing bills. But this way of saving money is not completely detached. When saving, people often focus on things they no longer have. Both ways are always of a short-lived nature, since focusing on abandonment only makes them unhappy.

Save as your own wage

This way of saving is long term, because you will be motivated to save more by saving for yourself. The idea behind it is not the renunciation of something, but at the beginning of the month the most important person in your life is you who should receive your money. This way of saving means that you have to decide who is most important to you, your landlord, your insurance, or yourself. It is often advised that the money that is still in the account at the end of the month is then really saved. Of course, this never works. Saving money means deciding who is more important to you. Is it myself or is it the landlord, the insurance company or who else? It is enough if you start with a small amount monthly. Once the habit is first installed, the amount automatically increases.

Of course, only the third kind makes sense, because it is the only way that works long term. Only by regular saving it becomes possible to invest. As a result, net wealth will grow more and more and you will be able to scale further levels of financial freedom. At first, it is not important how big the amounts are, because they will get bigger over time. The important thing is to start at all, because before you can start to walk, you have to get up from the chair first. Right?

I would appreciate a comment here below from you.

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