Hey there readers! Let’s talk about retirement. I know, I know—it sounds like a topic meant for our parents or grandparents, not us. But hear me out. As a 20-something navigating the twists and turns of adulting, I’ve realized the importance of taking charge of my financial future early on. So today, I’m sharing one of my older mentors’ personal journey and the seven smart ways I’ve adopted from their story that I’m using to save for retirement in my 40s. Trust me, it’s never too early to start planning for the future!
Ben Mulwa( not his real name) , who’s now in his 50s, is a very successful entrepreneur with a renowned chain of Hotels and Rental property. A quick backstory of Ben’s journey:
Ben didn’t just wake up as an entrepreneur one morning and have things smooth sailing for him, he started in corporate, just like most of us.
He landed his first job when he was 24, which was not really the ‘six-figure salary’ kind of job but at least it put food on the table and ensured he had a roof over his head.So how did Ben move from a middle-class earner to a tycoon retired in his 40s?
1. Setting Clear Financial Goals from the Start
Ben’s journey to early retirement began with a clear vision and concrete financial goals. From a young age, he knew he wanted to achieve financial independence and retire early, and he wasted no time in putting his plan into action. By setting specific, achievable and realistic goals, Ben was able to stay focused and motivated throughout his journey.
2. Living Below His Means and Saving Aggressively
One of the cornerstones of Ben’s early retirement strategy was living below his means and saving aggressively. He made a conscious effort to cut unnecessary expenses, prioritize his financial goals, and save as much of his income as possible.He would save on house rent;he stayed in a budget-friendly bedsitter that didn’t even amount to a third of his earnings, cut down on ‘Sherehe’; only going out when he was sure it would benefit him, that is, if it was a networking event and did away with impulse spending. By adopting an economical lifestyle and prioritizing saving, Ben was able to build a substantial nest egg in a relatively short amount of time.
3. Investing Wisely for Long-Term Growth
Ben understood the importance of investing for long-term growth, so he made sure to educate himself about different investment options and strategies. He diversified his investment portfolio, focusing on stocks and bonds, money market funds, saccos and rental properties to maximize his returns while minimizing risk. By staying disciplined and sticking to his investment plan, Ben was able to achieve consistent growth in his wealth over the years.
4. Generating Passive Income Streams
In addition to traditional investments, Ben focused on building passive income streams to supplement his savings and accelerate his path to early retirement. He invested in rental properties, dividend-paying stocks, and peer-to-peer lending platforms, allowing him to generate steady income streams that would support him in retirement. By diversifying his income sources, Ben ensured he would have multiple streams of income to rely on in retirement.
5. Minimizing Debt and Avoiding Lifestyle Inflation
Debt can be a major roadblock on the path to early retirement, so Ben made it a priority to minimize debt and avoid lifestyle inflation. He would take up fast and affordable loans that he would use in investment,such as the Logbook Loans,paid on time to avoid incurring extra charges, and resisted the temptation to inflate his lifestyle as his income grew. By keeping his expenses low and living within his means, Ben was able to accelerate his savings and reach his retirement goals ahead of schedule.
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6. Continuously Educating Himself and Staying Flexible
Throughout his journey to early retirement, Ben made a point to continuously educate himself about personal finance, investing, and retirement planning. He stayed up-to-date on the latest financial trends and research, sought advice from trusted experts, and remained open to adjusting his strategy as needed. By staying informed and flexible, Ben was able to navigate market fluctuations and unexpected challenges with confidence.
7.Enjoying Life and Finding Fulfillment Beyond Work
Finally, Ben understood that early retirement wasn’t just about reaching a financial milestone—it was about creating a life of fulfillment and purpose. He made sure to prioritize his health, relationships, and hobbies along the way, finding joy and fulfillment in activities outside of work. By focusing on what truly mattered to him and living life on his own terms, Ben achieved not only financial freedom but also a deep sense of happiness and contentment.
Should you wish to get some more financial guidance , we’re here for you at Springboard Capital. We’ve had years of hands-on experience in the financial space and can offer insightful tips on how to navigate said space. We also offer various loan products such as Logbook Loan, Business Loan, Emergency Loan, Asset Financing, Landlord Loans,Salaried Loan, Import Duty Financing or Title Deed Loan, to help grow and manage all operations. Contact us today at 07000 94 444 or WhatsApp us through the button below, or email us at info@springboardcapital.co.ke.
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Article written by Daniella Aswani.- Daniella is a Marketing professional with a Bachelor’s Degree in Marketing ,and has an interest in Brand Marketing, Social Media Marketing and Public relations. She enjoys innovation and coming up with new creative ideas.
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