Although the most common age in most countries to retire is 62 years old, using a smart investing and saving strategies you can retire years earlier. Who wouldn’t want to get off work sooner? Have more free time to spend with your kids and family, get new exciting hobbies, travel the world and get all the things that you would not otherwise have time for done. You and only you will be responsible for your schedule and deciding what things you need to get done. For sure, retirement comes with great benefits but equal responsibilities as you and only you will be in charge of sponsoring all of your wants and needs. All these fun activities and leisure time don’t come at an easy price. First, you need to get all the things done, put in some hard work and make your saving plan goals. So are you considering early retirement? Here are some steps you can take to make it possible.
Set your retirement schedule right
First of all, you should be realistic and honest about your future plans. What does early retirement mean for you? When do you want to retire? What amount of savings should you have by the time? How many years do you still have until that date? Knowing that you should set your annual and monthly goals. Will you be able to achieve these goals?
Determine your retirement savings goal
You might brainstorm on some plans for your retirement to determine how much money you will need to have in savings to be able to make all of those things you want. Most experts recommend that you have at least 30 times your annual income in either investments or savings before retiring from your job. This will allow you to live comfortably for the next 30 years without the need to save for the future. Want to have more than that? Work for it but include it in your goal.
Pay off all your debt before retiring early
You know the ground rule - you can’t start saving until you have debts. So actually the first thing you should do for your early retirement is to pay off all your debts whether it is student loans or a mortgage. Put all your extra money there so that then you can focus on retirement savings.
Save up for retirement
After you have paid off your debt your next step is to start making savings for your retirement. This will only be possible if you don’t spend all of your money right immediately but set aside a portion of it. You know your goal and your schedule, break it down and determine how much money you need to put in your retirement deposit each month. Not buying a thing or two that you really want is a needed sacrifice for future carefree life.
Earn more and invest to retire early
Apart from focusing on saving up and not having over the edge spendings, you should consider increasing your income. With more money earned it will be easier to set aside the same amount but have more to spend. Or if you want to make the process even quicker you can start setting aside more or investing it in retirement accounts.