8 Tips To Achieving Early Retirement

Early retirement is the dream. You get to finish working with plenty of ‘good years’ left and plenty of money to enjoy them. However, saving enough to retire early isn’t easy. This guide will show you 8 tips for achieving early retirement.

Create focused goals for your retirement

Figure out how much you need to retire and where that money is going to come from. How long will the savings last? Is it possible with your current income? What are some of your best options for maximizing your savings? If you want to, write down a list of all of your goals. Being able to look at them can help keep you motivated on your journey to financial independence.

Decrease expenses, increase income

Is there anything simple you can cut from your budget? Can you reduce expenses by X% each month? Do some research into what other people are doing with their finances. Find out where they are cutting back, and then do the same thing yourself. These simple life hacks can help you save more money without feeling like you are making sacrifices.

Take advantage of employer-sponsored plans

If you have access to employer-sponsored plans such as a 401(k) or an HSA, take advantage of them. These programs offer tax benefits, and they can help you save money on these things. However, it’s not really ‘early retirement’ unless you are put in a position where you don’t have to work for money anymore.

Automate & diversify your investments

Don’t make the mistake of keeping all of your investments in one place. You might lose money or miss out on gains if you do this. Instead, make sure that your investments are diversified and secure with low fees. In addition, automating deposits can help you save more money for retirement by making it automatic, rather than whenever you physically have time to do it.

Pay off your debt

This is a no-brainer. Debt creates stress, and it costs money in interest payments. Paying off debt can take a lot of pressure off your financial situation, which will help you to feel more at ease when it comes to saving for early retirement. If you have debt spread out in different places, you could get a debt consolidation loan from OneMain Financial to consolidate your debt into one easy payment, freeing up your time and potentially your money. While a debt consolidation loan can make your payments more manageable, it’s also important to consider any origination fees and the repayment length of the loan, which may offset savings or increase the total amount you repay over the life of the loan.

Start a side hustle

This is a brilliant way to bring in extra money. If you already have a career, consider starting your own home-based business alongside everything else you are doing. The extra income can make all of the difference in reaching financial independence or early retirement.

Ask for a raise

If you are already working a job, why not ask for a raise? What’s the worst that can happen? It gives you more money to put toward your retirement savings. If you don’t want to go through the stress of approaching your manager and asking for a raise, just do it anyway. You’ll only benefit from the experience.

Find an affordable retirement destination

It is easy to get caught up in the destination when it comes to early retirement. You want to go somewhere exotic, but you don’t have all of the money in the world. The truth is that it doesn’t matter where you go when you retire early as long as you can afford your expenses.