It doesn’t matter whether you’re a go-getting business owner or climbing that corporate ladder: we’re sure that you don’t want to keep grinding away at your job forever. In the best case scenario, you’d have a fulfilling career, and then retire young enough where you still have the energy to dedicate your time to all the other things you want to do during your time on earth. Of course, whether it’s traveling, setting up charitable organizations, or anything else, you’re going to need money to fund your lifestyle of leisure.
Figure Out How Much You Need
When it comes to retirement, how much do you think you need to have? It all depends on how much you want to be paying yourself each year. If you want a $50,000 a year income, then you’re going to need more than if you could get by on $30,000, for example. Once you’ve figured out how much you need per each year of your retirement, you can get to saving. As an example, if you wanted to retire at 45 with a $75,000 annual income, you’d need $2.9 million in the bank.
Get Serious About Saving
You can read a million blogs about how to save money, which include advice such ‘take your lunch to work’ and ‘cut out happy hour.’ These will save you for money, but it’ll get you nowhere close to your goal. When it comes to saving, you have to be serious about it. Instead of putting aside 10% of your income into a savings pot, make it more like 30-50%. You don’t have as much time to save money as somebody who’s happy to work into their sixties, so you need to get a jump start to make up the numbers.
Cut the Showboating
It is always tempting to spend as much as our income allows. Everybody does it, to varying degrees. If you’re earning big money, then things like a nice car or a bigger house will suddenly be attainable, and why not buy them if you can? However, if you’re upscale your lifestyle every time you get a bumper pay rise, then you’re not going to have much left over when it comes to saving. You don’t have to live frugally, but don’t buy things purely because you can afford it.
Talk to the Pros
Money is a complicated business, and it gets even more challenging when you’re trying to figure out how you can retire early and still afford a comfortable lifestyle; if it were easy, everybody would do. You’ll need to have a trusted investment advisor, ideally one backed by the operational tools offered by ChangePath from Corey Lagerstrom. If you have a lump sum of cash, they’ll be able to advise how and where you can invest your money to get the best return.
Look at Work
You want to retire, but it’s worth considering taking on some paid employment. This could be a part-time, advisory role that takes up little of your time but which brings in a healthy cash injection each year to top up your bank balance.