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5 Effective Habits That Will Help You Retire Early

Ah, early retirement. Not many Filipinos are aware of this concept, due to the fact that many prefer to work all throughout their lives, only stopping right after attaining their own house and personal properties. You’d think that this is just a new concept that came out of nowhere, but retiring early has been somewhat of a big decision amongst Americans in the past few years, more so some good-earning Filipinos. You might ask, “How on earth could I attain this, given that the current economy doesn’t agree to such way of life?” Well, simply put, there are a few effective habits when it comes to saving. If you begin to develop these habits now, you’re in for a treat in the upcoming years. Here are just a few important factors to follow:


1) Sticking to your budget.

You have your monthly salary, you’d create a list of all your expenditures, you stick to that list with no compromise, and then save a few amounts in the process. Rinse and repeat. This may seem easy and very procedural, but remember that there will always be temptations when it comes to spending. Fight them off! Resist! Even when it seems that you’re only able to save a few change per month, let that accumulate for a year until you get used to it. You’d be surprised at how far sticking to your monthly budget can help you.


2) Needs, needs, and needs.

New cellphone models, new flat screen TVs, new car, new Frappuccino latte in your local coffee shop, these are all temporary fillers in your otherwise long-term savings plan. Do not be fooled by them. Only buy what you need. This is somewhat similar to the first pointer, with the slight difference of the first one focusing on your monthly utility expenses (bills) while this one focuses on your monthly needs (food, water, electricity, etc.). Do not sacrifice your needs for wants and you’d be able to save a significant amount monthly, well enough for an early retirement in the future.


3) Declutter

“What does this have to do with saving for my early retirement?” you may ask. Well, if you organize and declutter your home, not only would you achieve a very productive personal space, you’d also find a few of your belongings which you thought might have been long gone. Going through your clutter, you might find important stuff which you can still use, thus, avoiding the need to repurchase them again, resulting into you saving more. Your favorite shirt, that beautiful mug you got for Christmas, that well-written novel your best friend gave you, all of it are filled with sentimental value, and you definitely wouldn’t want to buy a duplicate again just so you can satisfyingly utilize them to their fullest.

4) Avoiding interest.

A great habit to keep in mind is to never pay for interest. This would mean that you shouldn’t avail anything that may result in you paying for a high interest rate. Such may be found in credit cards and loans. If you plan to make a loan to buy “wants” versus “needs”, you may want to think twice. If you’re not careful, you may end up losing more in the consecutive years to come, rather than saving up for an early retirement. Interest rates are like prison chains, you can never be free of them until you’ve paid your dues. Never make this critical mistake. If you really need to buy something (an integral need), make sure you can afford it first.

5) Set aside an amount for both savings and emergency funds.

If you want to effectively save for an early retirement, take it from us, set aside a separate fund for your emergency expenditures. This may seem like you’d have to double down on your savings, but think about this, would you rather have a separate fund or would you rather use up all your savings in case of an emergency. A good emergency fund should cover up to 6 months of your living expenses. Strategize an effective savings plan and segregate every peso or centavo. At least, when something unexpected comes up, your personal savings are still safe.

With all of that being said, you’re probably looking for a way to keep your life’s worth of savings safe. Look no further than Cebuana Lhuillier Micro Savings. Initially offered in our Rural Bank branches, it is now available through our entire Cebuana Lhuillier branch networks. Simply put, you can use your 24K Card to open a micro savings account at any of our close to 2,500 branches in order to deposit or withdraw your savings. With a minimum deposit amount of only P50 and no minimum maintaining balance, it’s incredibly easy to apply for one. Only 1 valid ID is needed. You can even check your savings amount via our SMS service, reliable and ready to serve you 24/7. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.