Have you ever thought about early retirement? Many of us have, but the question is – how do we get there? Just like planning for your business goals, finances run true in your personal lives as well. There are a few things that you can do to help accelerate your savings to the point in which you feel that you could comfortably retire.
Have a plan, start early, and know what you want to do when you retire. These things can dictate how and when you are able to retire. Having the answer to these questions may change how you live your life before retirement, and change the spending practices that you currently have.
The first step is to start early. Be sure to communicate intentions with your spouse and loved ones and agree on when you want to retire. It is often a struggle as one of you is ready to retire while the other one is not. Set a retirement goals and reach targeted savings goals together to help ensure that you will meet your retirement date.
What do you want to do when you retire? Having a plan on how much “fun” money you want to have, how much you want to travel or if there are any large purchases you want to make all can affect the amount of money you need to have set aside for retirement.
Pay yourself first.Usually people who retire sooner are able to do so because they saved more during their working years throughout their career. This may mean taking less extravagant vacations, or holding off on renovations to your house until you can save and pay cash. These are all decisions that you need to make with your spouse to ensure that everyone is in agreement on day-to-day spending.
Paying off your debt. Retirement is usually more stressful if you have a mortgage payment to worry about or large outstanding credit card debt. Eliminating these monthly debts can help to reduce the amount of outflow of cash needed each month, making your retirement less stressful.
If you are one of those people who want to get out of the workforce early, be sure to start saving early. Knowing what you want to do with your retirement can greatly affect the amount of time that you have to work in order to retire. Paying off your debts and saving as much as you can early on will all help to make your retirement enjoyable and stress free.