For many of us, retirement is like the pot of gold at the end of the rainbow: alluring, but seemingly out of reach.
Once you get into your fifties, with the lure of retirement closer than before, you’re probably even keener for the life change.
You don’t have to hate your job to want to retire early.
Perhaps you’ve started making plans for retirement, and the things you have in mind are simply much more enjoyable than what you’re doing right now.
Maybe you want to work part-time, or volunteer with your favorite charity, or put some of your savings towards a trip around the world.
But retirement is a huge expense – arguably the biggest one you’ll ever face.
Most people think that retiring early is something they’d never be able to do. But, while it’s certainly not something to rush into, accelerating your retirement is definitely possible.
If you’re keen to learn more, check out the steps below for advice on how to retire faster.
Option 1: Increase Your Income
To be able to enjoy an early retirement, you need to save money at a faster pace. You should have a goal figure in mind – usually around $600,000 to $800,000, but this depends on your lifestyle. If you want to achieve this figure faster, one way to do this is to increase your income.
Invest in your career skills or simply ask for a promotion or pay rise at your workplace. If you can prove that you’re a committed employee, your employers should recognize this and agree to your request. You could also boost your income by taking on another job – but don’t overwork yourself.
Option 2: Decrease Your Expenses
If you’re unable to bring in any more income, the alternative is to simply decrease your expenses. Take a look at your spending habits and see if there’s anything you can cut down on for the sake of leading a more enjoyable retirement.
This doesn’t mean cutting all the fun out of your life, but there are lots of small changes that can make big differences. Take a look at your phone bill, your car insurance and other recurring bills. Is there anything you could find a better deal on? Even saving an extra few hundred dollars per month can be helpful.
Option 3: Optimize How You Manage Your Money
There are plenty of ways you can optimize your money management. Aside from managing your income and expenses, it’s worth setting up a number of investment accounts if you haven’t already. Try to check in with your finances every day, and make a plan to pay off your debts faster, if you haven’t already.
Big houses and fancy cars might give you a desirable appearance, but if you can learn to find luxury in the smaller things, you’ll have much more spare cash to save for retirement. If you do need to make any big purchases, be sure to shop around to find the best long-term investments. Impulse purchases might end up in regret.
Accelerating your retirement is certainly possible with the right plans in place.
Remember, if you’re unsure about anything, there’s plenty more advice online. For further reading, I would recommend checking out the resources at the bottom of this article by Can I Retire Yet.
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