Going for an early retirement in the present economic condition is not at all easy. You’ll have to put some extra effort in order to retire early. You’ll have to work hard and plan wisely to achieve your goal. Glance through the article to get acquainted with some effective strategies you can adopt to retire early.
Strategies that can help you retire early
Believe it or not, it is not easy to take up an early retirement. Rather, the situation is such that some people are compelled to work even after retirement. So, if you really want to work hard and party harder after taking up an early retirement, then you need to take each step very carefully. You need to be financially disciplined, and can’t afford to make a single retirement mistake. Check out some effective strategies that can assist you to retire early.
1. Take advantage of part-time job opportunities: You may be appalled with the thought of taking up part-time jobs. After all, who wants to work for another couple of hours after exhausting body and mind in his primary job? However, if you make extra effort and do a part-time job, then you’ll earn some additional dollars. You can earn as much as $15 by working an hour. If you can devote few evenings or weekends to do part-time jobs, then you can earn around $5000 in a year.
This will help you build financial cushion subsequently. You can contribute the total wage you’re earning from the part-time job to the retirement savings account. Once you have saved sufficient amount in the retirement account, you can leave both the part-time and the full-time job.
2. Lead a frugal lifestyle: If you want to retire early and want to spend the retirement years in comfort, then maintain a frugal lifestyle in your youth. Your main aim should be to build your retirement fund without making a drastic change in your lifestyle. If you plan little carefully and spend cautiously, then it will not be very difficult to boost your retirement funds quickly.
If you wish to visit various places after retirement, then there is no point in retaining a palatial house. You can sell the house and dwell in a mobile home. If the fair market value of your house is quite good, then you can sell it at a good price. Use a portion of the sale proceeds to buy a mobile home and contribute the remaining amount to the retirement savings account.
3. Contribute more to your retirement plans: If you make a minimal contribution to the retirement accounts, then you need to change the habit soon. Research on all the retirement plans and take the maximum benefit of all them. Sit with your financial planner and discuss about the retirement plans in detail. If you get a promotion or win a lottery, then contribute the extra funds to the retirement saving accounts such as 401(k), Roth IRA or traditional IRA. Increase your contribution amount every year. If you have reached your highest contribution limit in a given year, then invest extra money in annuities to get a steady flow of income during your retirement years.
It is predicted that a large section of the future retirees will have to reduce their expenditures if the country’s economic scenario does not change for the better. If you want to lead your retirement years in luxury, then find out if you can really afford to retire early. More importantly, ask yourself if you really want to retire early. Once you get the answers, you’ll be able to decide upon the future course of action.