Tips about taking early retirement
Posted by : Premraj | Posted on : Wednesday, October 26, 2016
Sometimes the annual vacation just isn’t enough of a stress reliever, prompting people to consider early retirement. There are many reasons to consider retiring early, and many benefits that come with doing so. Read on to find out why some people retire early, and how it has affected their lives.
Who can retire early?
When you think of those that retire early, you probably imagine individuals that are very well off financially. While this is not completely inaccurate, it is certainly not the standard or limit. You don’t have to have a high annual income or a multitude of investments and properties to successfully retire early. People who have the foresight and the ability to save and manage money well can retire early, and financial skills are something everyone can acquire.
What are the benefits of early retirement?
There are a number of advantages with early retirement, such as less stress from frequent and/or intensive labor. The additional free time in the absence of work responsibilities allows individuals the opportunity to explore a variety of their interests and talents, and to spend more time with loved ones. Additionally, the extra free time will allow you to develop better habits, such as a better diet and regular exercise, that can help contribute to your improved physical and mental health.
When should I start to save for retirement?
Early retirees, and retirees in general, need to start saving as early as possible—right now is as good a time as any. When saving, there are two important factors to consider: how you should save and how much you should save. How much you need to save depends on your lifestyle, daily needs and more. After evaluating your regular habits and estimating how much or little they may change, you can utilize one of many online resources or compile a monthly and annual breakdown to determine a rough estimate of how much you might want to save. After you figure that out, it will be a bit easier to decide how to begin your saving process.
How (and how not) to save for retirement
It is never too late to start saving, and there are many ways to go about it. Many professionals all over the country have added their input on the topic, providing real stories and real news to encourage individuals to plan toward a successful retirement. Below, you will find a list of do’s and don’ts when saving for retirement:
Do: One of the basic ways to start saving for retirement is to start a pension plan as early as possible in your working life; the contributions should always be the maximum you can afford. Open savings accounts, invest in unit and investment trusts for long-term capital growth, and buy high-quality stocks that will grow in value over time.
Don’t: Many struggle to save money due to overspending. You can resist the urge to spend money you don’t have—although that Gucci bag may never be on such a good sale again—by opting for a certain amount of your checks to be withheld and/or transferred to a separate account (like your savings account).
Do: Spend less and save the rest. Compile lists totaling bills and necessities so that you know exactly how much to spend and save each month. You can minimize spending by couponing, buying generic and/or used products, and buying things in bulk when possible.
Don’t: Let others influence how you spend your money—whether it be friends who want to go out, family who wants to borrow money or just a persuasive commercial that makes you want to buy that new Calvin Klein fragrance. Use physical and digital reminders to keep your eye on the prize!
Retiring early has many benefits and there is no limit to how early you can plan to redeem yours. Making small efforts to save and spend less money can make a large impact. It’s never too early to start, so why waste time? Start saving, and start planning what you’ll do with your free time once you are retired!