Grab a couple of dollars and fly into Zimbabwe. Voila! you become a millionaire. This perhaps is easiest way to become a millionaire today. But sometimes it better not to take the easy route. The challenge is to retire as one and that too in dollars term. Till yesterday Zimbabwe and its millions has been a party joke. Now with recession staring at our faces it is not easy any more to laugh at others. The relatively younger generation with lot of determination and a bit of prudence can still work out a plan to end up in a comfortable situation at their retirement. Though the big question is how? Lets try to think together how that can be achieved. The bigger question is what does people who are nearing retirement do. I still havn't found an answer.
Now lets find out what a person presently going through mid-life crisis do to secure a comfortable retired life. All will agree taht every one dreams to be a millionaire before they hang the boots. But it is not easy and it requires a lot of hard work and perseverance to get any where near that goal. Here is an attempt to put together a few important points....
The first and the most important mantra is the one that has been told and retold by your insurance agent over and over again. Nobody plans to fail, but plenty of people fail to plan. No matter how commonplace it might sound, it is the most important formula that works for all walks of life with a exception of maybe gambling.
The second important thing is to take chances in life but never gamble. There is a thin line which might get blurred at your convenience. So steer out of that.
Third comes setting up of the target. Be realistic about the inflation that is going to happen over the coming years. To get an idea of how money devaluates speak to your dad and find out what was the living expenses 20 -25 years back. I can assure you that the cost will move northwards , so factor in your safety quotient.
Start saving immediately. The needs no further illustration. Do today what you thought could be put back to tomorrow.
Get aggressive and allocate part of the investments in calculative risky asset. Fixed income generating vehicle will not let your wealth grow much as the inflation is going to bite into the chunk of that income
Try to invest in income generating assets. This will give you more freedom to think and act freely.
Set milestones along the entire period of your investment tenure. Monitor that you are not deviating from your target. Modify the path if and when necessary.
Differentiate between asset and liability. Investing with borrowed funds could well turn to be a liability rather than an asset.
Watch your spending. Restrict your impulsive buying habits and go for things that you need rather than that you want. Wait for discount sale to pick up those branded stuff you have been looking for.
Try to supplement your income by letting your hobbies and passions generate some extra income for you. Let your writing or painting or crafts get some extra revenue into your kitty.
Keep your cool. There is no shortcut to making money... any such thing simply does not exist
And finally try to save more than you had targeted........... when time come you will only be too happy to have those extra bucks.........