7 Things You Should Start Doing Now If You Want to Retire Early
When you are young, it may be difficult to think of your retirement plan as a top priority, especially for today’s generation of millennials who are only beginning to build their careers.
However, as any finance expert will tell you, the earlier you start sorting out your personal finances and planning for your future, the faster you will be able to achieve your pension goals and reward yourself. As daunting as it seems, tackling this financial aspect of your adult life early can also help you achieve your dreams of early retirement.
Here are five things you can start doing today if you want to retire early.
Settle all your debts
Whether it is student loans from university or credit card bills, paying your debts is the first step.
Picture yourself during your target retirement age.
How do you see yourself living in early retirement? For instance, at the age of 50. Do you see yourself jet-setting to exotic holiday destinations around the world all year or sipping a cup of tea in your home while reading a good book? These are merely sample illustrations but the contrast gives you an idea of your goal and how much you actually need to save in order to live up to that expectation and sustain that retirement lifestyle.
Make saving a portion of your monthly salary a habit. Even if you start with a small amount, you will be amazed at how much it will add up over the years. Make sure you have a separate emergency fund worth three to six months of your monthly income. It is money that you do not spend in case of unexpected life events. In the event of unemployment, this should cover your basic expenses, such as food, rent, and energy bills while you are job hunting.
Spend less than your average earnings.
There are a lot of things you mindlessly spend on every day, which could be making a dent on your potential savings. Make it a conscious effort to cut down on all your expenses. This could be as simple as cancelling existing magazine subscriptions and gym memberships and opting to visit the library and home or outdoor workouts instead, or making that artisanal coffee indulgence a weekly treat instead of a daily habit.
Take care of your health.
Many people make retirement plans in the hope of enjoying their life when they grow old. But this will be for nothing if you find yourself frail and plagued with a chronic, debilitating illness, which would not only impede your physical abilities but will also siphon money out of your savings that you have worked so hard for all your life.
Start pension contributions now.
Consider yourself fortunate if your employer offers a pension package. On the other hand, if this is note granted in your current company, do not hesitate to make the necessary arrangements for your private pension contributions.
Work with a personal financial expert now.
A personal financial expert can work to your advantage to get the most out of every effort you exert in your savings project. Foxgrove Associates can make an evaluation of your current financial status and provide you a clear strategic plan as to the available paths you can take to reach your personal financial goals and make your dreams of early retirement become reality. We can also advise you when it comes to managing your savings, assets, investments and for diversifying your portfolio.
Foxgrove Associates Limited can help you with all your personal financial planning and retirement needs. For more information regarding this matter, we encourage you to give us a call on 01732 746188 or send us an email at email@example.com.