How To Retire Early
How to Retire Early
We all have dreams about our future. Maybe your dreams look like this: by the time you are middle aged, you are living comfortably but still working hard and smart. When you are older and have figured out how to retire early, you are living the good life without a care in the world. You’ve had great success and look back on your past with great pride.
Life has a way of getting ahead of us all before we know it. Sometimes our dreams get lost in the fact that time passes too quickly with too much to do, much less thinking about how to retire early. We struggle more than we ever thought we were going to. We tend not to focus on our retirement because we are so busy trying to be a success right where we are at. Most people are really good at living in illusion and ignoring the reality. Sometimes if people look at the future, they have to truly admit where they are. Too much of ignoring the reality leads to a life that is not very productive; as the road becomes harder to travel, the illusions begin to crumble in a very painful way.
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No matter what point in your life that you have come to begin to manage your money, you can always focus on having a carefree retirement.
There are several things you can do that will help you learn how to retire early:
- You can begin to put 15-25% of your annual income into a retirement savings. The older people become, the less they find they need. In fact, simplifying their life is often a breath of fresh air. Spending less means funneling more into savings is how to retire early.
- In your younger years, you can focus on growth stocks and then switch to mutual funds that are more conservative once you near the age of retirement.
- Take the proceeds from the sale of a house and buy another house outright as a way to save the excess of having a mortgage. In today’s market, it is not hard to find a great house at a great price. Saving the money you would spend on a mortgage allows you to put more money towards your retirement.
- Another technique is to figure out how much you are living off of right now and project that to your retirement. At retirement, you can comfortably live at 65% of your current lifestyle. Your goal will be to amass the amount that will allow you to live comfortably. Aggressive investing can help you grow your nest egg.
- Owning your own business allows you to continually increase your income because you are not tied to a base salary. The more you make, the more you can put towards investing.
- Look for alternate sources of income to increase your savings. You can even turn hobbies into cash.
Retiring early allows you to put greater value on living than on money. There are several ways that you can learn how to retire early and make your dreams a reality. No matter what you do, make sure you save aggressively so you can enjoy an early retirement.
Comment below and tell others how you save for retirement. Your suggestions may just help someone achieve their dream of early retirement.
An accountant and tax preparer by profession, Gust’s true passion lies in his company blog titled “HBS Financial Group, Ltd.”. Through this venue, he not only tries to teach individuals about budgeting, money management, and taxation but he writes the majority of the articles as well.