Thursday, January 11, 2007
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As promised, here’s the Tips
1.You don't have to be rich to retire early. Such a sad fallacy. You simply have to reduce your expenses without really reducing your quality of life. Hence, if you can get along very well on say $1,000, you really don't have to be a millionaire.
2.To be totally retired can be boring and costly. So, it's best to have some work to do. If your work brings in say, $400 a month, you only need $600 from your savings or investments.
3.Decide which are the things you value most, and which give you the greatest pleasure. Go for what is most necessary to you and allocate money to these first, for example, a home, food, transport etc.
4.Be creative. If you are a sociable person, then share a home with someone. Or if you have your own place, rent out your rooms. If not, rent a room. Cook your own meals - that saves heaps.
5.Enjoyment. Very necessary. Otherwise what would life be? If you want to retire on very little, you probably wouldn't have much money here. Well, I decided to be radical. Sold off the TV. No more plays and theatre. But there are many cheap and enjoyable things to do. I've gone on $200 trips to Chiangmai, and $1,000 holidays to Australia. And a one-month trip to France and Spain for less than $2,500. Including delicious food, ballet performances, the Louvre (free first Sunday of the month), many other museums, the French Alps, Gaudi's Holy Family Church, Euro Disney, etc.
6.Cheap enjoyment? The credit card 1-for-1 offers are great.
7.It is also best to keep your careful ways to yourself. Most people don't seem to appreciate that you don't have to work while they do. They'd rather that you were mortgaged to the hilt. Don't let them know your careful ways or they'll use it against you.
8.So, look rich. But don't spend much. Do a bit of research. Take the Crystal Jade restaurants, for example. If you're just having dimsum, go to Crystal Jade Palace. The dimsum there costs about 15 per cent more than the dimsum at Crystal Jade Kitchen. But the service and ambience and general good feeling you get is more than worth it.
9.Oh yeah. a bit about cutting down. Clothes. Fifty years ago, people used clothes till they were worn. Nowadays, people seem to throw away brand new clothes. Well, I have items which are 15 years old. And people compliment me on them. Another thing, if you can do something yourself, then do so. I cut my own hair. So, I only go to the barber once or, at most, twice a year. But make sure doing it yourself doesn't cost you more in the long run, for example, buying all sorts of ingredients just to make a cake that can be bought more cheaply.
10.One more. Turn a hobby into a money maker. I happen to know Thai. And I enjoy teaching. I've been teaching Thai at various community centres - mainly for the fun of it.
My take.
I would probably follow certain tips given, so as to enjoy the maximum while spending much less. Point 9 is possibly the hardest, while Point 10 is what we all aim to achieve in our career.
However, i still dun quite get Point 7. The only understanding of it, is that people do often somehow expect you to want for yourself what they want for themselves.
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小强's File |
24. (but acts 14)
Multi tasker / Multiple Personality.
Free Spirit.
Many preferences, Few dislikes.
One Weakness.
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