Retire from a job – Not from Life!

“Its more important to grow your income than to cut your expenses. Its more important to grow your spirit that cut your dreams.”

-Robert Kiyosaki, American Author and Businessman

Robert Kiyosaki, the author or famous books like “Rich Dad, Poor Dad” and “Cashflow quadrant – Guide to financial freedom” in no uncertain terms shares this principle of getting financially independent. The right focus should be on growing the income, rather than only cutting your expenses. Simply means that you enjoy every beautiful thing that life has to offer like vacations, spending precious time with your family and even every other worldly pleasure. So, how do you do that? Precious little question, isn’t it?

The secret lies in the title of our small writeup here. Its not about getting tied up to the mundane routine job that you perform, or even when you are businessman its not about getting stuck into the day-to-day transactions, but rather find the right balance of investment and income growth, so that you can relax as grow further in your professional as well as personal life. The key is very simple: Planning for your retirement from the day one of your professional life. It is never too early to plan for Retirement, as it gives you freedom and choices, to do what you want and not what you have to do. The later you start the tougher it gets!

It’s not to scare anyone who has already crossed 40 of their age, but early investors who have started in their 20s, are already on their way to financial freedom near their age 40. A sound financial strategy (with or without an advisor) and willingness to execute it for long periods of time with fine tune-ups every few months, would get you set to retire early and enjoy the riches that life has to provide. You don’t have to wait till age of 60 to retire just like any other professionals do.

Our world-famous friend Albert Einstein once said: “Compound interest is the 8th wonder of the world. He, who understands it, earns it; he who doesn't, pays it.” Coming from a man who is famous for his brilliance in physics and especially his tremendous work on philosophy of science, this quote makes even more sense! For a man who also understood the importance of being financially free, which would give him time and space to enjoy and follow his passion in life. Isn’t it something that we all can learn and adapt?!

Haven’t you heard the story of a Chinese bamboo tree? It’s like any other plant or tree with roots, stem, leaves and still its special! Why is that so? Like any other three, the growth of the Chinese Bamboo Tree requires initial nurturing. It requires water, fertile soil, sunshine. In its first year, we see no visible signs of activity. In the second year, again, no growth above the soil… The third, the fourth, still nothing. Our patience is tested and we begin to wonder if our efforts (caring, water, etc.) will ever be rewarded.

And finally in the fifth year – behold… a miracle! We experience growth. And what a growth it is!

The Chinese Bamboo Tree grows 80 feet in just six weeks!

But let’s be serious, does the Chinese Bamboo Tree really grow 80 feet in six weeks? Did the Chinese Bamboo Tree lie dormant for four years only to grow exponentially in the fifth? Or, was the little tree growing underground, developing a root system strong enough to support its potential for outward growth in the fifth year and beyond? The answer is, of course, obvious. Had the tree not developed a strong unseen foundation it could not have sustained its life as it grew. The same principle is true for people and their financial freedom goals. People, who patiently toil towards worthwhile dreams and goals, building strong corpus slowly through conscious efforts by investing regularly; while overcoming challenges and sacrificing a few wants in early career years, grow the strong financial foundation. They reap the rewards and can “Retire” early, while the spectrum of lottery winners, get-rich-quick schemers and lavish spenders usually are unable to sustain the same wealth and same lifestyle.

Compounding takes time, its all about building the initial strong foundation. It’s all about being very patient in first few initial years, where the principal building takes in own course. Though the compounding and growing money to become financially independent makes a lot of sense, this “Magic of Compounding” has to be accompanied by “Logic of Investing”. The basic principles like inflation, depreciation; or even considerations like lifestyle wants becoming needs in future (e.g. in recent past, everything running on internet has changed the communication gadgets becoming a need rather than a want) have to considered in your “Retirement Planning”. You cannot simply go through motions and do like “other people” do!

Finally, to re-iterate the fact again: "PAY YOURSELF FIRST” or in very simple words: pay in your retirement fund first. Rather than thinking as retirement funds becoming a “liability” every month, it’s very easy to visualize now that it pays for your dreams, allows you to follow your passion and makes you financially independent. I guess you never imagined that The Chinese Bamboo tree will teach you such a wonderful life lesson!