Someone at 40 years does not have a retirement time horizon of 20/25 years.
Retiring at 65 is completely redundant, people at the age of 80 still ran a country like France 30-40 years ago. Joe Biden is over 70, so the same with many other world leaders although recently a few young leaders have stepped up but hopefully I make my point. Retirement is a financial milestone, not an age milestone.
Retiring early is a dream we all share. But it doesn’t have to be just a dream! Whether you want to retire at 55 or even earlier, you need to have a retirement plan in place that’ll get you there.
The best retirement plans look at the secrets others who have achieved this before you used to get there. And when it comes to retiring early, there are a few traits of early retirees you should consider adopting:
Save a lot
Very few people who have been successful at retiring early inherit a vast amount of money or win the lottery. Instead, they spend years saving to increase their stash, plugging away towards their goal until they’ve saved enough to buy their freedom. So, make the types of life changes that can significantly lift your salary trajectory for the rest of your life – things like getting another degree and changing jobs can help.
Understand your spending habits
Most of us don’t realise how much those small, unnecessary spends add up to every month. But speak to someone who has achieved financial independence or managed to retire early, and they can tell you where EVERY cent they earn is spent. Start tracking your expenses. You will soon discover tonnes of small areas in your life that you can stop spending on, without changing the way you live.
Have an investment plan
There is no way you are going to live off your life-savings for the next 30 years. Inflation will mean this money is worth next to nothing. To retire early and live-in comfort, your money needs to work for you. By learning about investing, you will be able to increase your wealth much faster than if you just stick everything in a savings account thinking that it is the safest place to put your money. So, pay attention to these three factors in your retirement planning.
So, there you have it. If you want to retire early – remember these tips. While simple, they could be the difference between retiring at 55 or working till you are 70!