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.

 

 

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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!