There’s no denying the fact that everyone wants to retire sooner. The real challenge is actually making it happen…
You can fantasize about expediting your retirement date all you want, but it won’t do much good unless you take the necessary actions.
If you’re interested in retiring before you’re halfway through your sixties then you’ve come to the right place.
Whether you realize it or not, you can retire sooner than you think. With that said, here are a few effective measures for getting you where you want to be in terms of an early retirement.
Arguably the most important step you can take towards retiring sooner is based off the 30/20/50 ratio.
Don’t let these numbers scare you away!
This ratio is simply used to demonstrate how you should split up the income that you receive from each paycheck.
Here’s how these numbers come into play…
30% of this revenue should be set aside for taxes, 20% should be reserved for savings and the remaining 50% should be used for basic lifestyle expenses, such as housing, food, and fun.
I know you’re thinking that these percentages aren’t necessarily the easiest numbers to stick to, but they’re crucial if you’re serious about escaping your full-time job at an earlier date.
Experts recognize this system as one of the most productive ways to prepare and speed up that long awaited retirement.
No, this doesn’t mean you have pinch pennies to accel this date; however, a certain degree of budgeting won’t hurt.
The individuals who fall short of their retirement goals and fail to close-up shop when they originally intended to are those who simply aren’t saving enough or are spending too much.
This isn’t rocket science here. It really is as simple as that.
Apart from abiding by the 30/20/50 ratio, another way you can kick-start your retirement is by setting up passive income streams.
Sure, this is something you can get around to DURING your retirement years, but it tends to work out better if you get the ball rolling prior to this date.
People grow accustomed to the big river of income that goes hand-in-hand with a lifelong career, but it’s smart to set up other moneymaking streams that can flow extra cash towards your savings or expenses.
This additional income often takes the form of real estate or stock market investments and can act as a financial cushion both before and after retirement.
As the saying goes, it’s always better to be safe than sorry.
Another shortcut towards retirement is to regularly schedule meetings with a financial advisor. By regularly, I don’t mean every few days, weeks or even months.
The idea is to stay on top of your progress and ensure that you’re sufficiently prepared for your post-career years, which you can easily accomplish by meeting with an advisor just a couple times per year. That’s all it takes!
Simple enough, right?
You’ve already made a habit of visiting the doctor for the sake of your health. So, why not do the same for the sake of your retirement? It only makes sense.
Well there you have it. It may sound basic, but each of these three factors are essential for advancing your retirement date.
All you have to do is remember the 30/20/50 ratio, set up at least one passive income source and schedule checkups with your financial advisor about twice a year.
With those three factors checked off the list, you can sit back, confident in your ability to retire sooner.