For those of us not married to our jobs, retiring early seems to be an attractive and elusive life goal. So what are creative ways to retire early? These may not sound creative, but they warrant the description because they are not necessarily the easiest options for people to stomach. Nevertheless, if retiring early is your number one goal, here are some ways to achieve it.
Open your account today, if you haven’t already
This tip is the easiest one to follow and the most highly recommended. If you want to retire early, you have to start saving early. Open an account today and start funding it with as much money as you can put away. Choose an investing service that won’t charge you high fees. For help calculating how much money you may want to start allocating for retirement.
Pay off your debts
This option will require a lot of short term sacrifices, but will pay off immensely when it’s time to retire early. Make it a priority to pay off your debts as soon as possible and free yourself from the interests rates that are getting in the way of your financial independence. This means becoming diligent about budgeting. Make spreadsheets, track your spending religiously and get into a routine of smart purchasing.
Live well below your means
For most people, this is the hardest sacrifice to make, but is usually a key component if you want to retire a great deal in advance. People go about this differently. Some couples will live off one spouse’s salary and put all of the other spouse’s salary in a retirement fund. Others will live on about a third of the money they make. If you’re attempting to retire in your thirties and maybe even forties, chances are you’re going to be living extremely simply. Be prepared to curb your consumption in a dramatic way on a daily basis.
In confusion to creative ways to retire early …
So now you’re probably left with a few questions. What about children? Do these options factor in raising a family? Or are these measures a bit too severe? What about life enjoyment? As with all things in life, it boils down to attitude. Living way below your means may not work for your family and that’s okay. For others, they can become quite comfortable and find happiness in a very simple and inexpensive lifestyle. That’s why these are creative options, not necessarily built for the average individual. Only you can determine where your priorities lie and what works for you!
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