Extreme Early Retirement – Ways To Early Retirement
After all, early retirement may not be as challenging as it seems to most. The factors that matter the most for realizing that dream of retiring early in life are your savings and the accompanied adjustments in your lifestyle. The sooner you can accumulate and invest your savings wisely, the earlier you can retire. Take stock of your current financial status and incorporate necessary changes that help retiring early.
1. Start saving early
Of course, you need to spend a good part of your income from your job to have a comfortable living, but you should always set apart a reasonably good amount towards your future requirements. Ideally, you should put aside your savings and spend the rest. On doing it the other way round, you are most likely to use more as you keep having the wrong impression that you have a lot of money in hand. The early you start saving, the better would your retirement be. If you really want to realize your dreams of retiring early, plan your expenses and stick to those plans. Another effective way to enhance your savings is to look for an additional job. You may earn money even by working as a freelancer. All this extra money that you generate should be diverted to your retirement fund.
Modify your lifestyle
Another way for increasing your savings and thus retirement money is to bring slight changes to your lifestyle. Marketers are here to prompt you to buying expensive cars, big houses and a lot more, but you need to act smart and buy only products that are budgeted for. Don’t get caught in the whirlpool of consumerism. Explore the idea of shifting from a big luxurious house to a smaller more practical house in a no-so-expensive place. That helps saving taxes and insurance towards home. Plan to use your car more effectively for the entire family. Unnecessary trips to supermarkets help saving fuel and some cash too. Reduce the number of weekend outings. Consider buying a used car. Plan your holidays and avoid going to distant places, restricting the duration of your vacation. This is not to suggest that you stop enjoying. Instead, learn to enjoy simpler things of life.
Evaluate your retirement benefits
Most companies have some kind of retirement package. Evaluate such program offered by your company and find ways of enhancing your contribution to that. Contribute the maximum possible amount to the retirement account offered by the company. Many jobs in government and public sector have pension schemes that could help your early retirement plan. Certain jobs allow you to retire after having completed a specified number of years, irrespective of your age and claim your retirement benefits, including pension.
Go Part Time
Rather than giving up working totally, it may be a smarter choice to get a part time job after your formal retirement. Apart from keeping you in touch with your field of specialization, it helps generating cash for more comfortable living without spending so much of time. You could even consider having a small business venture on your own. Once it becomes beneficial, you could even hire people to keep it running and you spend some time just to oversee its operations and keep the company running.