Want to Retire Early? It’s Entirely Possible and Here’s How…
You might think of retirement as a lot of hard work and early retirement as straight up fantasy. It seems hard enough to start saving money right now, so why would early retirement be feasible? Well, it turns out there’s more than one way.
I’ve said this before but whatever age you’re at right now is the time to start thinking about retirement, if you haven’t started already. Start off by deciding what age you want to retire and go then consider the following…
Write Down Your Goals, Naturally
Obviously, everything starts off with you setting goals and creating a plan that will help you stick to them. Goals should be realistic and achievable. You should be able to create smaller goals as milestones along the way.
Your goals should highlight the income you should have each year leading up to retirement. That means how much you should save, spend, and earn. There are online retirement calculators that help you determine how much you need to withdraw every year, as well as how much you need to save up.
Start Living On a Budget Now
While you’re still earning an income, it might be wise to take it easy with the spending for when you aren’t regularly working. This means cutting out the things you don’t need. This is a win-win, as it helps you save up for retirement while developing budgeting skills for when you do retire, allowing your funds to last even longer.
Consider making a little extra money on the side as well. Maybe you can rent a room out or start selling some of your stuff. Which brings me to the next point…
Along with putting money away in savings, putting money away into your investment portfolio will help you generate a decent amount of money for retirement. Some experts believe that you should be investing half of your income if you want to retire early. Don’t get me wrong, this will generate a lot of money (if you’re smart about investing), but you should be careful not to overextend yourself.
Even investing a little bit at a time won’t hurt!
So if you want to retire early, start saving now and start preparing right away. It’s entirely possible!