How to Retire Early
Retirement is something that requires a solid plan and smart strategies, executed over a number of years. However, one third of Americans aren’t saving for retirement, and a sizable percentage of workers say they have virtually no money in savings and investments. And almost a third say they have less than $1,000 in savings.
Most people work their entire life, and then retire at 65, but here are some ideas to retire early:
Get a good paying job. Also make sure you know the salary range of your position, and negotiate to the higher end of it. Saving is easier when you have a higher income, as long as you don’t let your spending habits get the better of you.
Find a financial planner you can work with and who can steer you in the right direction. Start early, and follow a plan over time. The earlier you start planning and investing for retirement, the better.
Most people will recommend saving 10% of your income, but if you plan to retire early, you’ll need to put away a higher percentage of your paycheck each month. Again, this has a lot to do with how you spend your money and what bills you are obligated to pay, so keep spending down and save more.
One other thing to keep in mind is that if you retire early, your retirement years and your kids’ college may coincide, so saving for both might add some pressure to make smarter, more frugal spending choices over the years.
Cost of Living
Quality of life doesn’t mean expensive. Your cost of living can be remarkably lowered by making some smart decisions on how you spend your money and eliminating wasteful spending habits.
If you and your spouse are both planning for retirement, consider staggering the dates so that one of you can retire while the other still has a salary and benefits. Another thing to consider is keeping part-time employment as an option, so that you aren’t relying entirely on your savings.
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