Early retirement. It seems like just about everyone has the dream of retiring early, finding their passions, and spending their time the way they want to spend it, but very few people actually achieve this goal. It’s a very difficult thing, but it can be done if you are able to plan correctly. The road to early retirement starts with having a relatively high income (realistically you will need this) and having the discipline to save a lot of money.
If you’re going to retire early, obviously you have to save up for more years where you’re not earning any income, which can be challenging. Instead of living for 20-30 years in retirement, retiring early may lead to 40-50 years of retirement. If you choose to retire at age 50 rather than a more conventional retirement age, such as age 65, that’s 15 more years that you must plan to make your money last. You go through a lot of money in 15 years.
So first, you need a good income. Why? Because you have to pay for whatever expenses you have now PLUS saving a large part of that money for when you retire. If you make an average salary this is going to be difficult. Whatever you make, it’s vital to save a large percentage of your salary. The more the better.
There are things you can do to make the transition easier. For example, if there was something you always wanted to do but never had the time for it, you might be able to take a part-time job to earn a little bit of income. If you have always wanted to coach youth sports, or write, or do some other small job like that which you never had the time for, retirement is the perfect time to do this type of thing. You’ll keep busy, and you might even be able to early a little bit of money. Maybe not a lot, but every little bit helps on the road to early retirement.
So, the road to early retirement starts with a good income and a lot of saving. It’s definitely not an easy path to take, and you’ll have to make a lot more sacrifices early in life, but if you’re disciplined enough, it’s a dream that you can make into reality. Early retirement is not just the pipe dream that it may seem to be.