DELICIOUS
SU
REDDITYou’ve probably thought about retiring. Who hasn’t? The sad truth is that while most people are told to start young, circumstances generally prevent this from happening. Of course, when you do start to think about retirement and the possibility of retiring early you’ll have a lot of ground to make up.
The good news is that it’s still possible!
Discipline
The traditional route is to eliminate debts and put as much money as you can spare into a saving scheme every month. This is an effective approach although you have to be willing to trade some luxuries today for the chance of an early and long retirement.
It’s worth noting that this is also a good approach to help cover against the unforeseen. Superannuation is the government-approved scheme to encourage financial accumulation for later life.
In effect, it’s the state pension but it can’t usually be reached until official retirement age.
However, if you need to take early retirement due to financial hardship, terminal illness, incapacity, or several other reasons, you can access these funds early, check out this guide to early access super. Effectively creating early but affordable retirement.
Multiple Incomes
A great way of building funds for early retirement is to build several different income streams.
Alongside your traditional job, you’ll need to look at ways of creating extra income, such as affiliate marketing. Over time you can build a lucrative business on the side.
This can create extra funds for your retirement pot or you can simply retire and rely on these earnings to live. There are many different opportunities available, most of which are web-based. But, the only real limit to your additional income is your imagination.
Of course, you should note this will take time, decreasing the amount of time you have available for leisure activities today.
Partial Retirement
A third option is to take partial early retirement. This means quitting your job and potentially selling your home to create a post of money for you to enjoy. You can then travel, staying in different places for short periods to experience the cultures.
Along the way, you can work full or part-time if necessary or you wish to, hence the partial retirement. This is a great way to have new experiences while you’re younger and still have your pension pot to fall back on later in life.
The amount of work you’ll have to do as you travel from place to place will depend on the size of your funds and your willingness to ‘slum it’.
Don’t forget that the key to successful early retirement is not getting the funds together, it’s ensuring you can live off those funds indefinitely. If you’re simply depleting the funds month after month then there may come a time when you have none left, and still need some. You don’t want to retire at 55 only to need to go back to work at 85!
It’s a good idea to talk to a financial planner before you finalize your plans.
