How To Retire Early
Most of the time, we are so tired of our jobs. We get frustrated that it even makes us cry when we are too stressed. There are times that we get so burned out that we just want to quit and forget about everything. You don’t want to get out of the bed; you just want to curl up, and then go back to sleep. However, this kind of scenario can only happen in a dream because reality will wake us up and we need to face it. We need to go do our job because we have bills to pay and family that we need to take care of. It seems like the list of our responsibilities that involves money is endless. Therefore, most of us are dreading our retirement.
Nobody wants to get stuck working with an 8-to-5 job until the age of 60. Can you just imagine all the stressful times that you will have to suffer and endure before being able to quit? How about those people who are working for 3 to 4 jobs? It seems like an endless suffering so that they can provide a comfortable life for their family. However, you can retire early if you are going to follow these tips:
Plan your retirement
First, you need to know how much money you will need during your retirement. Calculate your future expenses, such as food, clothes, home, traveling, and you can also include college so you can help your children. You can add a small amount in your total expenses so that you will have excess money in case you need it. The next step is calculating the amount that you need to save. It will depend on you if it’s going to be weekly, monthly, or every payday. If you are having a hard time saving up, you can choose an automatic transfer to your savings account.
Track and reduce your expenses
List down all of the things you spend your money like clothes, groceries, makeup, gas or transportation fare, and monthly bills. After you completed it, you can arrange it based on your needs. The top will definitely consist of food, transportation, and groceries. You can cut back your expenses from your shopping and monthly plans that you pay. You don’t always need to have new clothes but it is important that you have at least a pair for different occasions. Therefore, you won’t have to allot a budget for clothes in case you need to attend a special event. For your monthly bills, the utility services it important but you can cut some of it like your cable television subscription and postpaid phone plan. Furthermore, you should stop yourself from buying too many gadgets or travel all the time. It is not bad to want to have some reward for yourself or be able to take a break but remember that your long-term plan is more important rather than the short one.
Save while you are young
The best time to save is ‘now’, especially while you are young. The earlier you start, the earlier you can retire. However, it is not too late to start now. Take for example Carl and Mindy who was able to save $1 million in 4 years. They are the proof that you can have a happy retirement as long as you are determined to do it.
After you finishing your retirement plan, you already know how much money you need to save. If you are not used in saving, it can be a challenge in the beginning. However, once it becomes a habit then saving up will be easier. One option that you can do to help you save is through automatic bank transfer. From your salary account, you can set up a weekly or monthly transfer towards your savings.
Aside from saving up, it is also important to invest some of it and earn money. There are several investments that you can do like the stock market, buying properties, and getting insurance policies. Nowadays, it is easy to buy stocks from different companies because there are websites that offer services to manage it. Furthermore, you can learn how it works and you can choose to manage your stocks by yourself or employ the help of a broker. After investing in the stock market, you can also buy properties. It is the best option since the price of properties increases every year. You might be confused why included insurance as an investment. It is another form of investment in terms of protecting yourself, family, and properties from unforeseen danger. In case that you suffer damages then you can still be at peace because you know that you have protection from the repercussions involving money.
Search for an alternative income
Retiring doesn’t necessarily mean sitting in your home 24/7, watching TV all day, traveling around the world, or letting each day pass without too much work. It will definitely be boring and your savings can be exhausted. Therefore, having an alternative income or side job is important. Moreover, you can do it while working on a full-time job. It will be easier to save up if you have more source of income.
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