Life Starts After Retirement
The Only Way To Find Out Is To Retire Early
If you want to retire well before you hit retirement age, you’d better start taking advantage of financial tips, tools and secrets used by young investors who are already retired.
You will need enough retirement income to last as long as you do. The following tips will help you retire early with enough retirement income.
#1 – Find Extra Money Fast
The fastest way to hit early retirement is find as much extra investment money as you can. You do that by living below your means. You save money by not spending it.
A financial habit followed by investors who achieve the financial goal of early retirement is living on less than what they earn. Hard habit to start, great habit to help you retire early.
The temptation to spend everything you earn can be hard to overcome. The choice is yours, you pay now or pay later. If you cut back on your spending and increase your investing, you can reap the financial rewards and retire early.
#2 – Take Advantage Of A Retirement Calculator
A retirement calculator sets your financial target, all you have to do after that is hit that target. The best part about a retirement calculator is the detail it gives you. It will tell you how much you need to invest to be able to afford retirement someday. It’s very basic, it’s very black and white.
# 3 – Pay Number One First
You are number one; before you spend one dime on anything else make your retirement plan contribution; that is paying yourself first. When you invest first and spend second you are paying forward your retirement.
Whatever money you have leftover after you make your contributions is what you get to spend. Adjust your spending; limit it to your leftover money. Hard to do, yes; but very powerful.
#4 – Make Compounding Your Best Friend
Compounding simply means your money earns money.
Time is the secret to compounding; time will make you rich. The longer your money is invested in the market, the more it will grow. It turns a little bit of your money into a lot with little effort on your part.
Start investing for retirement the day you start your first job. If your employer does not offer a retirement plan, invest in an Individual Retirement Account (IRA). Sock away as much money at the youngest age you possibly can.
You cannot invest money into a retirement plan unless it is earned income, with a W2 form. In other words, your child cannot invest money they earn from their lemonade stand.