There are only two types of assets to consider when thinking about possible early retirement. The first type is the asset that appreciates. Appreciating assets are those properties that have increasing value over time. These properties are vital for an early retirement.

Personal property or property that depreciates is actually detrimental to amassing assets that appreciate. Cars, clothing, and furniture are assets that depreciate. While it’s okay to invest in some, especially if you have a new home, repeatedly buying them is not a good idea.

Reduce consumption now

In the same way that “reduce your speed now” works, it’s time to reduce consumption. We are not referring here to food and other basic products. We are talking here about buying clothes that you don’t need, a new TV that you don’t need, etc.

Arjuna Higgins of the Inter-Alliance Group states:

“Clean house. If you want the best incentive to stop spending, clean your house. Go through every closet and cabinet and put everything on the counter. Take inventory. I don’t know about you, but I have a habit of buying things I already have.” at home”.

“You know what I mean. You think you’ve run out of something because there’s so much clutter in your house that you can’t find anything. Every time I take inventory, it immediately kills any urge to splurge. I realize that, I already have too many things”.

Appreciating assets

What types of assets would be good for your financial future?

Liquid assets are basic. These assets are easily convertible to cash and have appreciable values ​​as they are not used over time. Current accounts, savings accounts and money market accounts (in the UK) are considered liquid assets. Certificates of deposit are also a liquid asset. If you can’t invest in other appreciable assets, at least keep your liquid assets growing. “Invest in savings” is the way to go. If you’re having trouble saving on your own, ask someone to save for you.

If you have a regular monthly payroll account, have a certain percentage of your monthly income in an annuity account. You can start from a minimum of 3% to a maximum of 15%. It all depends on your current condition. Some people are able to save around 50% of their total income because they don’t have families. Some families are so thrifty that a 20% cut in their monthly budget doesn’t affect them.

Another type of appreciable asset is the investment asset. Investment assets include stocks and bonds. Putting money into a mutual fund is also considered an investment asset. The beauty of investing assets is that you can see your money grow on a daily basis.

Real estate is another type of appreciable asset. Invest in land, because land is inherently scarce. Although the rental price may drop from one period to another, the land will always remain expensive. Invest in land whenever you can, so in the future you will be safe. In the United States, real estate is the largest source of money and wealth for most families. The more real estate you own, the more financially secure you are.