Labor Day 2024 is here in America. And while the day is a time for celebration, discounts, sales, and work breaks, it’s also important to know that Labor Day is a time to review your labor in America.
What is Labor Day?
Dating its origin back to 1882, Labor Day is full of history and stories that brought the present-day reforms to work culture in America.
This year labor day 2022 will be celebrated on Monday, the 5th of September, across America. The national holiday has great significance for employees around the world. Celebrated on the first Monday of September, it gives the people of America a long weekend off of work, popularizing the term Labor Day weekend.
Over the years Labor Day weekend has become synonymous with fun things like enjoying the end of summer, family barbecues, backyard parties, and of course, Labor Day sales.
Labor more or labor less?
Now, does the significance of Labor Day end with grilled burgers in the backyard and long waits for discounted rugs?
No, the most important significance of Labor Day is to remind you that something has to be done if you want to change the norms. A public revolution made it possible to have the eight-hour workday and work-life balance you have today. A personal upheaval is necessary to get the financial balance you seek in your future.
How to get this financial independence?
It’s almost everyone’s dream to work less and still be able to live a quality life or be able to retire early. This is how you can make that possible.
Debt management
Debt management is the one thing that gets everyone every time. There are so many questions. “Should I borrow?” “How much will I have to borrow?” “What is the acceptable limit?”, etc.
So many questions and doubts about something that was not good for your income from the beginning. When you borrow, you end up paying more than you borrowed from the person or the institution you borrowed from.
Paying interest to have money can only be justified if it is used to invest in something that is going to grow in worth by more than what you paid for it.
Make saving a priority
Saving does not mean saving at any cost. It only means saving by not compromising your quality of life. Big brands and names have had this conversation before and have admitted that they do not target the rich, they only target those who want to seem rich. This show of grandeur and extravaganza is not helping you in any way, rather is costing you an early retirement.
There are ways to do this right without having to compromise your way of living. Why pay big-name brands just for their name for something that can be bought for one-tenth of the price?
Start saving small
If you start saving small, a minimal amount can turn big after an interval. For example, saving $10 a day on coffee, cigarettes, and beer, by cutting just one of each daily and investing it at a rate of 5% compounded daily for the next 35 years can make you $ 341,593 richer at the end of it.
That’s just $10 a day, imagine what can be achieved by saving more. So start with less and let it compound, add more when you have more. Do not wait for more. Waiting can cost you something huge, you could have had if started early. And it’s never too late to start early, start today.
Set aside for emergency savings
One of the major constraints in your way of steady saving and retiring rich is emergency. Anything that you did not see coming is an emergency. It is always advised to be prepared for an emergency by having health and life insurance and keeping funds aside for other unforeseen emergencies.
Being frugal is good
Learn to bargain. Bargaining is something that the rich swear by. Ask for a lower price, there is nothing in asking, but if it gets you a good deal, what’s there to lose?
Some things should never be bought used (like a mattress or things for your newborn), and then some things are better bought used (like a phone or a car). Newer things cost more money, a second-hand product will cost substantially less. Where a second-hand product could perform the same task, buying a new one is simply a waste of money.
Conclusion
If you wish to labor less and retire early and with good money, having a budget and sticking to it could be everything. Saving, investing, and keeping away from debt are the key ingredients for a happy retirement. Let’s make a pact that this Labor Day 2022, you will focus on the above points to retire rich.
