53-year-old early retiree: "I wasted too much time and effort trying to be exceptionally original," one of my three things from my 20s.
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In 2015, Alex Trias and his spouse Noki purchased an apartment in Lisbon, Portugal. They are retired now and enjoy the laid-back Portuguese way of life while living off the stock income.Joo Esteves for CNBC Make It photo Since you're trying to reach a specific net worth on a short timeframe if you wish to retire early, there isn't much space for financial errors. Your accomplishments and your aspirations to stop working could be derailed by a significant unwise investment or purchase. On his path to retiring at age 41, Alex Trias avoided such a setback with cautious planning. To keep his costs down before retirement, he kept home furniture to a minimum. He could have learnt some financial lessons sooner, though. Here are three things Trias wishes he hadn't done in his 20s, along with some tips for staying away from them. |
1. Making an exceptional effort to be original
Trias discovered that trying to deviate from the standard wasn't always worthwhile in both his professional life and his personal financial situation.
He claims that he spent far too much time and energy in his 20s attempting to be unusually creative rather than incredibly competent.
It was a mentor who used the analogy of shucking oysters to teach Trias this lesson early in his legal career: "It'll be a hell of a lot easier for you to just concentrate on shucking those goddamn oysters," the mentor said. Trias' job is to shuck as many oysters as possible.
that has a purpose. He believed that the only way to advance in your job was to stand out or attempt to rethink tried-and-true strategies. But more often than you might imagine, the saying "if it ain't broke, don't fix it" holds true.
2. Believing consistency is less important than timing
My biggest financial mistake, according to Trias, wasn't spending; it was thinking. "I used to constantly consider buying at a cheap price, holding onto it, and then selling at a higher price. I'm at a loss for words when it comes to the stress and waste this kind of thinking produced.
Trias advises making investing and saving a habit rather than trying to time the market.
"One of the things that works really well is an almost mindless habit of repetitiously saving and investing every [time] you get your paycheck, irrespective of what might be happening in the world economy or whether you think stocks are overvalued," he claims.
According to Trias, it's not worth the time for regular investors.
and anxiety from constantly monitoring and worrying about your money.
"I think trying to pay attention [to your net worth] month to month or even year to year is probably counterproductive," adds Trias. "Pay more attention to the habits you're forming than the end result," was the advice.
3. Exaggerating his requirements
Trias claims he was shocked to discover how little his family truly required to get by when they first moved abroad, both in terms of personal possessions and spending money.
"I always thought that to be happy, we would need four bedrooms, or fill in the blank — I had a laundry list of needs," he claims.
Fortunately, he quickly realized that he could get by with less.
We had to live much more simply for about six months before we realized we didn't just don't need that, but it turns out we don't want it. We don't even require a fraction of what we believed we required to retire, he claims.
You could be unique. Maybe having a personal chef or having the means to eat out every meal is how you envision a pleasant retirement.
Discover what you genuinely want your retirement to look like while you are still young, and then consider how to get there. It can be simpler than you anticipate.
