7 Tips To Make Early Retirement Attainable
Some people are real workaholics that just can’t imagine their lives without going to work or spending time on business meetings, calls and other sorts of business-related gatherings. Others, on the other side, can’t wait to retire and lead a much stressless life surrounded by the people they love. If you resonate more with the latter ones, you might want to consider retiring early if your situation permits you to.
However, even if it looks like you won’t be able to retire early, there are some adjustments and modifications you can do that will shorten the time you have to wait until you can finally enjoy Mondays from your well-earned home. Here are some things you can do right away to maximize your chances of retiring early.
1. Get Rid Of Your Debts
The last thing you want to do is to spend money on your debts when you start having a lower monthly income. Instead of always choosing the minimum amount to cover your debt, save up money and start paying off more than you normally would.
You might have to cut on other expenses, but this step will eventually relieve you from unnecessary stress. And besides, not having debts any longer will feel so good.
2. Move To A Less Expensive Area
If you’re renting a place, or have means and will to rent your own home instead of living there, you might want to consider moving to a less expensive area for a couple of years. It will indeed be a sacrifice in terms of comfort, surroundings, and so on, but switching your neighborhood for a location where rent costs much less, will help you save a lot more money than counting every penny when you go to buy groceries or shopping.
Usually where the rent is lower, the utility bills are also cheaper.
3. Invest Early
When you want to retire early, you have to think in long terms. Early retirement doesn’t have much sense if you’re going to be broke and become a burden to your children.
In order to avoid situations like these, start learning about investing or hire a financial advisor that will be able to advise you where you should invest in order to get a long-term return and eventually make profit. Remember that investing takes time, be patient and follow what is going on the market.
When you start investing, don’t go for investments that could get you fast, but smaller money, rather, have a strategy that will get you a lot of money through a longer period of times.
4. Spend Less
If you’re not good in saving money, look up for easy ways to always a percentage of your income. This way you will be financially stable, and you will be able to be relaxed once you reach your desired retirement age.
This also means that you should earn more than you can spend, and this can be achieved by two things: spending less than you do, or increasing your income.
Choose whichever is more attainable to you, and make your early retirement more likely to happen.
5. Think About Ways To Generate Passive or Creative Income
In case you don’t want to stop working entirely but still don’t want to have another day job, you might want to think about other ways to earn money.
Luckily, today they are different ways you can start a side hussle and earn money without working nine to five. You can start blogging about your hobbies, or you can start doing something creative and sell it on different online platforms.
6. Team Up With Your Partner
If you’re taking early retirement seriously, you have to think it through with your partner. If you don’t work as a team, chances are things could get out of control causing your plans to fall apart.
First, define your own financial goals and discuss whether you’re both on the same page. Don’t let financial matters create problems in your marriage later on. It is crucial that you both talk everything through and plan out what will each of you do in order to contribute to your future financial stability.
7. Plan Your Savings
Raising a child, having to pay for medical bills or sanitizing damage in your home, are one of the biggest reasons of becoming financially unstable. For instance, if you want to have a kid, raising him will cost you about $233,620 (without college or private school costs).
If you are planning to have children in future, start saving immediately. Also, make a special “emergency fund” that will cover all the unpredictable expenses that may occur.