Stop Dreaming About Early Retirement|Just Do It

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Early retirement

Make Early Retirement More Than A Day Dream

When you find yourself daydreaming about the day you will be able to retire is it because work is a drag or is it because you worry about not having enough money to retire early?

If work is a drag, find a new job.  But if you are serious about having enough money to retire early, there is so little time, so much money to save.   To retire early you need enough money to support yourself for at least thirty years.

That financial goal is achievable but only if you know what steps to take and then actually focus on working those steps.

Step #1 – It”s All About Your Habits

  • Achieve early retirement, adjust financial habits
Making early retirement into reality
Image by Vicki & Chuck Rogers via Flickr

How you spend your money is such a critical financial habit.   If you spend more money than you earn, then you will never retire early.

Adjust your living expenses to live on less than what you earn and invest that extra money into your retirement plans, it”s the only way to achieve your financial goal of early retirement.

Easier said than done, not really.  Nothing is impossible.  If you seriously live below your means, you can achieve early retirement.

Step #2 – Review Your Type Of Spending

  • Are you a need or want spender

Take a critical look at what you are spending your money on: needs or wants.

If your retirement goal is to retire early and you are buying stuff that you want vs need, you are sabotaging your efforts.  Curtail your “want” type of spending and you will find some extra investment money.

You want a $300  purse but only need a $30 one.   You may like running through drive-thru every morning on the way to work for a cup of coffee because it”s more convenient, but do you need to, can”t you make coffee at home?

Step #3 – Go To War With Your Credit Cards

  • Credit cards lead to debt, debt is a waste of money

You need to understand that your credit cards are a detriment to early retirement.   If you carry credit card balances, you are living beyond your means not below them.

early retirement and managing credit cardsCredit cards have made it too phpaide.com easy for you to spend beyond your income but to not feel like it.   You only feel the financial pinch a month after your purchase when you get your credit card bill.

Credit cards are expensive if you don”t pay the balance off on a monthly basis.  If you carry credit card balances you waste investment money on interest charges and fees.   You also risk jeopardizing your credit scores.  Credit card balances lower your credit scores; a low credit score increases what you pay for goods and services, again wasted investment money.

Only make purchases on your credit cards that you can pay off every money.

Step #4 – Find Money|Create A Budget

  • Follow your money

A budget sounds so restrictive, but it”s not, it”s just a way of tracking where your money goes.  A budget helps you cut out wasteful spending and find that extra money.

Think about it, if you do not know where you are spending your money, how can you make any adjustments, such as cutting back on wasteful spending or living beyond your means?  Living paycheck to paycheck is stressful and can get expensive; following a budget will help.

Just Do It

Stop daydreaming about moving your retirement age up and retiring early.   Focus, focus, focus.   Make it a reality.  You can do it by taking the necessary steps to make it happen.    It”s your money, your habits.   Keep doing what you always did and you will get the same results.

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