- October 20, 2018
- Posted by: Ethica Private Wealth
- Category: Blog
For many, the prospect of early retirement can seem like an unachievable goal, but it is something that a lot of hard-working people long for.
The truth is, it is possible to retire early and take advantage of everything that life has to offer. However, as with most good things in life, it takes a fair amount more of planning and preparation to get yourself to a position where you can retire earlier than you had originally expected.
Early retirement can be a great opportunity to make the most out of your 40s and 50s and try something you haven’t done before. If this is something you’re keen to do, there are a number of things to do that may help to turn your dreams into a reality, which we’ve outlined below.
1. Work Hard, Save Harder
This is an obvious point to make, but it’s often something that many of us overlook. During your working life, there is usually a lot more potential to earn than most of us take advantage of. If you are really keen to meet a savings target, there are always more hours in the day, more days in the week, and more ways you can cut down on spending. It just requires some perseverance and sometimes a little ingenuity to increase your saving capabilities.
If you feel you can manage it, look into part-time working opportunities on top of your regular job, try monetizing a hobby, or take on board the overtime that your boss is always offering. Of course, this should always be done under careful consideration as you don’t want to burn out or have any negative health effects.
As well as this, there are usually a lot of ways we can tighten our purse strings a little more, too. Re-evaluate your budget, cut down on any unnecessary expenses, and watch those monthly savings begin to pile up.
Read More – How to Build Your Retirement Savings Quickly
2. Consider Investments
Investment can be a great way of multiplying what savings you already have in order to reach your retirement goal faster. Whilst investment can be a really smart decision, it’s also very easy to fall victim to scams, or lose money on bad investments.
It’s usually a good idea to consult a professional when you begin looking into making investments so that they can help you get to grips with what you can gain from investing and how you can tailor your investments to suit your needs.
It’s not the easiest thing to do by yourself but, with the right support and research, good investments can produce healthy returns which could help you get that bit closer to retirement, faster.
3. Think About Developing a Passive Income
A passive income is a way of earning money without having to do an awful lot to maintain or manage your business. There are hundreds of different options for passive incomes that can earn you a little – or in some cases, a lot – of money.
Smaller scale passive income options include getting cash back on your shopping or renting out a room in your house, whilst more lucrative choices can include making a YouTube channel, writing a book, or getting into an online marketing business.
Online passive incomes are an increasingly popular way of earning and also offer a great opportunity to become location independent when you retire.
The important thing to note about passive incomes is that you can continue to earn from them when you are retired so, if you retire early, you can still receive an income each month whilst doing very little to earn it.
4. Set a Date and Plan Thoroughly
The key to successfully retiring early is to set the date you want to retire and plan accordingly. Thorough planning will help you to meet your goals more effectively and ensure that you are completely aware of how much savings you will need.
Retirement planning can be quite difficult, but there are a lot of ways to get help and support. You can speak to a financial advisor who can help you to efficiently plan and make predictions for the future. You can also try using popular retirement apps to help you stay on track and get information from blogs and articles online.
If you can create a plan that is rational and achievable, it’s really just a case of sticking to the plan, and you will be handing in your resignation at work before you know it. Discussing dates and maintaining a plan can also act as an exciting talisman to keep you motivated to reach your savings goals.
Read More: Retirement Savings Apps
5. Start Your Savings As Early As You Can
The longer you have to save, the more money you will accrue for your retirement. If you’ve been considering early retirement for a while, it might be a good idea to make a definitive decision and begin planning and saving as soon as possible.
That way, you will be able to save up what you need to retire at the age you are hoping for, and if you change your mind in the future, it will only mean that you have more cash saved up to help you when you do retire.
Making Up Your Mind is the First Step On the Road to Early Retirement
Retiring early can feel like an important and daunting decision, but if you are realistic about making the most of your retirement years, then there is no time like the present to start making it happen.
Need some support to get started with your retirement planning? Get in touch with a retirement planning specialist like the team at Ethica Private Wealth Specialists on the Sunshine Coast to help you take the first step in your retirement journey.