6 Crucial Steps You Need To Take If You Want Early Retirement
Perhaps you may be among one of those who doesn’t believe they can retire at 50. Maybe because you have not only read about it but have also seen many people literally being pushed out of employment because of advanced age. Your own dad’s employer retired him at 60. Even worse, is with those neighbors, including 65-year old Joe, who are still toiling. Yet, you can retire at 50 without ever winning a lottery jackpot.
It is, however, not a walk in the park to retire at 50. You need to take the following deliberate steps:-
Save, save, and save again
Saving is the alpha and omega for your quest to retire at 50. You need to start saving early, when you get your first job, say at age 25. If, however, you have not started saving and you are in your 30s, you need not worry about your age. For, you are neither too young nor too old to start saving for your retirement at 50. If you are 30 or 40, it means that you need to save much more than you could have done, if you had started early. This, however, does not mean you save everything and starve yourself and your family. Just be frugal.
Prepare a budget and stick to it
Review your monthly expenditure to identify any financial wastage. This may be in form of items you purchase but are not necessary or ones you can get cheaper alternatives. Then prepare a budget including items in order of priority without compromising on their quality and stick to it as much as humanly possible. On capital expenditure, such as motor vehicles and houses ensure that their cost does not entail you taking excessive loans.
You need to come up with a sound investment strategy. If you have the requisite skills, you can develop the strategy yourself. If not, consult an investment expert to assist you in coming up with one. This is because failure to do so would jeopardize your retirement. Many people have seen their hard-earned money go up in smoke after investing in Ponzi schemes or entrusting their investments in unscrupulous characters who defraud them. Your investment strategy will guide you on what class to invest, which will give you good earnings even in your retirement.
A monthly pay-cheque may not sufficient for you to meet your household budgetary needs and save adequately. A few dollars from a side hustle –a grocery store, corresponding for an online magazine, teaching part-time and entertaining patrons at a neighborhood establishment etc- can supplement your monthly earnings. This gives you room to build a nest egg for your retirement.
Choose when to retire
Set the date you will leave in six months to a year before you leave your employment and start preparing your departure. The preparation will entail clearing or be planning how to clear any loans you may have, arrange the company assets you may be assigned and replace any ones that you may have lost or spoilt and draft a hand over the report.
Plan your getaway
Retirement money stretches a lot further in some places than in others, and it’s also easier to retire quite early if you have moved to or settled in a place that has a low cost of living. In the United States, the most affordable cities to retire are mostly the smaller cities and towns, hidden away from the high tax rates and the edgy demand for housing. If that does not sound quite charming enough for your early retirement, then consider for heading abroad.
Places such as Vietnam, Costa Rica, and Belize offers you the outdoor adventure, temperate climates, and sandy beaches of your early retirement dream destinations at a very small cost of retiring in the Florida. An average household budget in such places is usually as low as $750 a month.
Putting together the money you need to retire at the age of 50 is quite challenging, which the average American consumer would find difficult, if not unpleasant. It demands a lot of delayed gratification from your hard work. However, at the same time, the pleasure of enjoying the freedom of early retirement while you are still in your prime period is an almost tempting proposition.
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