Slave to the grind? That is so 80's. Plan wisely, pay attention to investment tips and there's no reason you can't spend your days lounging by the pool, chilling with a piña colada or sailing the Mediterranean well before the ripe old age of 65. Retiring early is totally doable. But unless you're making serious bank, you're going to have to make like Scrooge and live below your means. Listen up and you'll be seeing your golden years sooner than later.
How Soon Can I Retire?
If you plan on retiring early, time is of the essence, and you'll need to be aggressive about it! You're never going to get rich playing it safe. Consider allocating at least 75% of your portfolio to mutual funds and start switching to a higher percentage of bonds as you get older. Early retirement is possible!
While your money is busy accumulating, you'll need to figure out when you want to retire and approximately how long you may live. Multiply that by your current salary (or what you think you need to live off), and you're talking some serious cash money if you want to retire early.
Everyday Ways to Save for Retirement
You're going to have to forget about splurging on the latest designer threads and newest flat screen, and focus on keeping your money in the bank. Delayed gratification? Perhaps, but it will be worth it if you can escape the rat race sooner. Consider setting up an automatic savings plan so that a percentage of your paycheck automatically goes to your savings account. Once there, make sure you know how to invest your money wisely.
What to Do About the Debt Monster
On the flip side, you'll need to forget about acquiring debt. Debt is only going to hamper early retirement. Your money needs to go towards saving not towards your credit card bill. You might be tempted to live in a fancy house and drive the newest car, but what's that compared to living footloose and fancy free while your friends are still working?
Lastly, think about what you might want to do post-retirement. You might be able to work part time doing something you really love which will bring in a little extra income and make early retirement a more tangible reality. Once you know how to retire early, you can start putting your plan to work.
Rachel Khona has written for Inked, Ask Men, Treats and Vaga, where she is a contributing editor. When not writing, she can be seen performing some of her work for Inner Monologues, Speakeasy Stories, and Stories from the Creek. She attended Rutgers University where she graduated with a Bachelor of Arts in history, specializing in American pop culture.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on your taxes, your investments, the law or any other business and professional matters that affect you and/or your business.