Steps for Young Dreamers to ER (Part 1)
I thought I would share some qoutes from some finance pro's that if followed, could easily let someone ER.
I had to break it up into two parts because its kind of long (10 quotes).
1 - Flexo from Consumerism Commentary:
"Generally, I'm not the one giving advice. Why? Well, it took me a long time to learn what I already know in terms of finance, and frankly, it's not much. It took me a long time not because I'm dense and I don't understand the concepts; for most of my life I didn't realize there was such an area of thought called 'personal finance.' I knew I had to work to afford to live, but I never considered the fact that I had to make more money than I spend. As I realized this truism, I needed to find a way to make it work for me. My plan involved saving as much as I possibly could while minimizing my expenses, but most importantly, I had to keep track of my progress. The personal financial software I used to chart my expenses didn't matter so much as the fact that I was able to visualize my money. By 'visualize' I'm not talking about daydreaming about rolling around in gold coins like Scrooge McDuck; through the use of the software I was able to see my money grow over time. And that is exciting...and motivating. The motivation creates a feedback process -- the more you see you're able to save, the more you'll want to save.
This is my non-professional advice: use computer software to visualize your expenses. You'll find that saving money is more exciting and thus you'll be encouraged to perform better."
2 - Steve Mertz from In Cash Flow We Trust:
"If you were speaking to your best friend about your current financial prosperity, or lack of it, how would you finish this sentence ? 'I wish I would have done _____________.'
Whether it is buy rental properties, or build a portfolio that throws off $8,000 a month, state a specific desire. Then stop and brainstorm what you would have to do today to make that a reality. Who would you need to help you achieve your goal, what additional knowledge would be required of you? Draw out a timetable for your efforts and then ask yourself, 'Am I willing to start the work today?"
'All men dream, but not all equally. Those who dream by night, in the dusty recesses of their minds, wake to find it was all vanity. But the dreamers of the day are dangerous, for they may act their dreams with open eyes, and make things happen.' -T.E. Lawrence"
3 - Jim Mahar from Finance Professor:
"The best financial advice I can give is to think long-term. While this may seem simple to do, it is often very difficult to accomplish. Thinking long-term means you save more than you think you need to save and spend less than you want to spend. The best way that I have found to do this is with automatic investment plans. These plans, which are available through all major mutual funds and through many employers, invest money directly from your checking account on a regular basis. This forces you to invest regularly and has the added benefit of making it easier to cut back on spending since if you do not see the money, you are much less likely to spend the money."
4 - Michael from Retire Young and Wealthy:
"If you are serious about investing and personal finance, I believe you have to find something that you are interested in, something you enjoy learning about, and something you are happy to maintain without it feeling like a chore. It doesn't matter if it is art, stocks or property. Personally, I am interested in real estate and building web sites. Real estate can produce a good passive income source, and bunch of successful websites can produce multiple income streams with sometimes only a little bit of effort and only minimal start-up costs.
My final points of wisdom are to diversify, save, reinvest all of your profits/dividends and only borrow money for income producing assests."
5 - ante_up at Let's Make Cents:
"You need to recognize where you are now and what is important to you. Prioritize needs and wants. Just because ‘everyone else’ is still clamoring for more, doesn’t mean you have to. If your family is a priority, then you need to address issues of life, disability, and medical insurance, future retirement, college savings, and your personal finances. You can live for this week, or you can plan for your entire future. Take the basic advice of financial planners everywhere. Pay off debt, pay yourself first, save, and invest for the future."
The rest is continued in Part 2.