How To Retire Early
/Retiring Early
First Published Date: July 6, 2011 ADawnJournal.com
When you are thinking of retiring, there are many things you will want to do in order to retire early. Retiring early is very important because it gives you more time to enjoy your Golden Years, but you also need to make sure you have enough money for those Golden Years as well.
Naturally, the most important thing you can do is to start early in saving up for your retirement savings. You want to start early because not only will that help you weather any financial storms in life, it will allow you to save more money for a longer period of time. If you do not start early with saving for your retirement, there is little chance that you are going to be able to retire early.
Of course, starting early is only part of it, you need to also cut how much you spend. Remember, the less you spend, the more you save. The more you save, the earlier you can retire. It really is just that easy, so forget about getting that second car and look at getting some money into the bank instead. Do you need a big house? No, then go and put that money you would have spent on a large mortgage into the bank.
Start putting money into your retirement plans at work as soon as you can. Whether it is a Canada Pension Plan or IRA with the United States.
Investing is important if you want to retire early but it will do you no good to invest in risky ventures that could cost you all the money you have saved.
When you are younger, you can invest more aggressively because there is a greater amount of time to recoup any losses you suffer. However, as you age, make your investments safer and safer. Don’t be investing in junk bonds at the age of 50 because you may win big, but you could just as easily lose very big.
Mortgages cost a lot of money and the sooner you pay off your mortgage, the more money you can save each month. If your mortgage costs you $1,500 a month, paying it off will earn you $3,000 every two months, $30,000 every 20 months and by the time you reach five years, you will have saved $150,000.
Obviously, it is not always that easy to save for an early retirement but by starting sooner, spending less and being wise with your investments you could see yourself hitting your golden years at 50, instead of 65, giving you a lot of extra time to enjoy life before you have to slow things done because of old age.
Of course if you don’t do any of these things, you can always hope that you a rich uncle will pass away and leave you a vast fortune that you can retire on, but that is about as likely as winning the lottery.
