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| Extracted from Sin Chew Jit Poh Fortune Investment Weekly dd 10th Feb 2020 Page 22 |
This Chinese article is sharing how an 30-year-old American accumulates $1 million at the age of 26. His secret is very simple: Live Frugally. He is a Youtuber cum real estate investor. He claims that he is not a big spender and saves 99% of his income. For example, he doesn't go to expensive cafe for coffee but buying coffee beans and make it at home; he doesn't go for branded outfit but go for cheaper alternatives; he compares prices when shopping etc.
Yes, indeed. By doing so, I able to retire early. I am also not a big spender and is having frugal lifestyle. I focus on fulfilling daily needs by searching for most valuable alternatives; I don't go for branded products but durable and worthy alternatives; instead of changing my 17-years-old car to a new one, I send it for regular maintenance and inspection to ensure it is at its tip-top condition etc.
By having low essential living expenses, you do not require high net worth before your retirement. The rule of thumb is keep your expenses low, keep your inflation rate low, make sure your backup is able to generate sufficient income to sustain your frugal lifestyle. This is it.
Hope all of you could get out from the rat race ASAP.
Agree with you on, 'By having low essential living expenses, do not require high net worth before retirement.' Keep sharing.
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