Do you dream of giving up the corporate rat race at 35 and jumping straight into your hobbies of travelling and organic farming? Well, we do! The dream of early retirement is what keeps many of us going through the motions, day after day, week after week.
For most, ‘early retirement’ remains a dream. However, with a bit of smart retirement planning, you can make this dream come true and enjoy it to the fullest in your youth.
Here are a few simple strategies you can easily implement right away.
- Plan, Plan To The Last Detail
While hard work is a must to retire early, what’s equally important is planning. A smart retirement plan is what you need. From the amount of savings you have, the savings you need to retire, how will you reach that figure, and what are the best ways to do it. These questions should figure in the list.
Set out a clear roadmap and stick to it no matter what. After all, nobody ever said that retiring early was simple and easy.
- Save More and More
The less money you spend, the more you will save, the more you can invest, and retire more early. An easy mantra, isn’t it? It is important that you lower your cost of living.
Utilise public transport instead of taking out your cars or go carpooling. Cook more than eating out every alternate day. Go for Netflix or Amazon Prime Video than buying that expensive cable plan. Buy Items you need and no more.
Such measures are cost-effective, help in your retirement plan, and prevent your home from filling up with clutter as well.
- Get A Side Gig, Now!
We live in the ‘gig economy’ after all. Not only are they a failsafe against layoffs in these uncertain economic times, they provide you with that extra income that plays a major role in your retirement planning roadmap. You need to recognise your skill-set and use them.
Are you a coder? You can program websites or apps for start-ups as a freelancer or teach online. Are you a writer? There are many websites which can use your writing skills. Are you a good marketer? Freelance marketers are the rage these days and will remain so in the coming years.
Side gigs give you that much required break from monotonous office work and help with increased income too.
- Don’t Store, Invest The Money
To retire early, you will need a certain amount of wealth. You can reach that amount only if you invest your money.
Invest the money from side gigs and the savings from your regular salary in places where you get high returns. Mutual Funds and Equity markets are your best, while you face the risk of market volatility, you also stand to get superior returns.
Another superb option is a pension plan. The plan will ensure you continue to get a guaranteed sum based on the annuity option you choose. Invest wisely now and reap the benefits later.
- Concentrate On Your Health
While you take strong steps to retire early, do not forget it will, without a doubt, involve long nights, lack of sleep, disagreements with friends and family, feeling of loneliness, and no little amount of stress.
You will need a fit body and mind to get through this. To get fit is not rocket science, all you need is a disciplined diet and exercise regime. It helps to be in your best shape possible.
Early retirement is a cocktail whose ingredients are a smart retirement plan, hard work, and the dedication to see it through to the end. While it will not be easy, it is certainly doable and these five tips will help you do it.