Retiring early is a common goal for a lot of people. Some want to retire early so that they can start traveling more, others just want to have the time off. Whatever the reason, it’s often easier said than done. It’s hard enough to retire on time, let alone early. But if you can make some smart choices now, this dream becomes a lot more likely. Below, we’ll outline 5 tips you can use starting now to help you retire early.
Create a Plan
The first thing you’ll want to do, and perhaps the most important, is to create a plan. You’ll want to sit down and really think about the details and what it will take to retire early. How much money will you need to fund your ideal lifestyle? How early do you want to retire? It’s important to think not only about your goals but the steps you’ll need to take to get there. For example, how much money would you need to save each month in order to reach your early retirement goal?
It’s a good idea to create this plan someplace where you can easily access and modify it when needed. A simple option is to type it up on your computer, then store it somewhere on the cloud so that you can access it via any of your devices. You can even use some financial planning templates to help make the planning process easier.
Adjust Your Current Lifestyle
The next thing you’ll want to focus on is adjusting your current lifestyle. Chances are, in order to meet your early retirement goal, you’ll need to make some changes starting now. For example, you may need to cut back on your expenses or start putting more of your paycheck into a retirement savings account.
Start by examining how you currently spend your money. Look for areas where you could cut back, even if it’s just a little. For example, maybe instead of buying lunch each day, you could pack a lunch. Or maybe you could cut back on the number of streaming services you subscribe to. Everyone has different expenses so see which of yours you can afford to scale back. Then, once you have a little more room in your budget, you’ll want to start putting that extra money towards your retirement fund, even if it’s just a few dollars more.
Make Use of Available Financial Options
There are some financial options out there that may help you retire early. It’s a good idea to acquaint yourself with these options so that you can see if any of them are right for you. For example, there are different types of retirement funds, some of which may benefit you more if you plan to retire early. If you’re a home owner, you may want to explore the different reverse mortgage pros and cons, as a reverse mortgage is one way to get funds out of the value of your home. Research all the different options available to you, then assess which ones make the most sense for your situation.
Work With a Financial Advisor
Often, a great investment is to hire a financial advisor. A financial advisor can assess your specific financial situation and help you create a detailed plan based on the fact that you want to retire early. They can help advise you on where to save your money, what investments to make, or how you can start cutting your expenses. Another way financial advisors can help is if you’re in debt, which is something you’ll definitely want to work down if you want to retire early. Look around for financial advisors in your area and be sure you read some previous customer reviews before deciding on which to hire.
Finally, once you have a plan, it’s important that you stay committed to it. Of course, unforeseen circumstances happen and you may need to adjust along the way. For example, you may lose a job or have some medical bills you need to pay. But whenever possible, do your best to stick to your plan. It’s often helpful to have a reminder of your ultimate goal – retiring early – somewhere you can always see it. That way, when you’re tempted to spend money on something frivolous, you’ll be reminded of your goal and hopefully, avoid making a poor financial decision.
Get Started on Your Early Retirement Plan Today
The best time to start planning for early retirement is today. The sooner you get started, the bigger the benefits you’ll receive in the end. The tips above are a great place to start but only you can take the steps necessary to put your early retirement plan into action.