Do You Dream Of Early Retirement? It May Be More Possible Than You Think
For many the dream of early retirement stays, as
just a dream. This is not surprising as to retire at around 50 years old you
need around 40 years of savings behind you. People do it though, what is their
secret? Imagine being able to retire early enough so that you are still in good
health to enjoy life to the max. A lot of people choose to travel in their 50’s
and this age group is catching up fast to the traditional gap year student in
travelling the world.
In this
article we aim to look at steps that can be taken to make early retirement a
reality rather than a dream. Of course there are many people who love their
career and wish to continue working into a ripe old age, that’s fine and
following these steps will help to improve finances for when you finally decide
to retire.
Save, save and save
A very
simple concept, you need to save as much money
as possible to be able to retire early. To save enough money you really need to
start saving as early as possible. It is very tempting to have the mindset when
you’re young that it will be ages before you retire, this may be true, but life
has a habit of running at a rate of knots and before you know it the dream of
retiring early is not a feasible option. It doesn’t matter how much or how
little you earn, you just need to keep track of your spending habits and make
savings where you can. When you retire you won’t need as much money to live on,
your commuting costs will be eliminated and you will no longer need to put
money aside each month into savings. For those who have children, by the time
you retire your children may be financially independent of you.
Invest
Investing
your savings may at first seem a risky option, however investing in stocks and
shares have the potential to be extremely lucrative. The internet has brought
with it a plethora of easy to use trading platforms, which makes financial
trading accessible to everyone. Before you embark on investing your money you
should take advice to ensure you are best prepared for the ins-and-out of
investment. You can read more at: https://commodity.com/ so that you
are guided through the process.
There are
also many financial products available to invest your savings. For independent
financial advice it would be a good idea to consult a financial advisor on the
best products available for your circumstances.
Property
If you
have a mortgage it is advisable to have paid it off by the time you reach
retirement. This will have the benefit of reducing your housing costs
considerably. The equity in your home
can then be used to fund part of your retirement by downsizing. If you rent
your home you could also look at downsizing as well as move to a cheaper area.
It may have been necessary to live in an expensive suburb of a city when you
were working, but once retired you could move further away if you wish.
Keep the
vision of early retirement at the forefront of your mind and you may just
achieve it!
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