If you are in your 20 something and if retirement seems like a faraway dream, then there is a dramatic change needed. And no, this is not some exaggerated statement. This is very much possible. Are you wondering what the secret sauce is? Here, is the list.
- The magic is not in tackling the expenditure but to invest wise. Saving is a habit that you got to develop as early as possible. Clarity of how you spend money and where you can alter the ways to save more is crucial. Once you retire, this religious practice will take care of the mathematics of your finances automatically.
- No compromise on the happiness quotient. It is necessary for you to firstly define your retirement. What does that mean to you? Whether you want to break away from the 9-5 routine, or want to take up a different stream of work or want to pursue the passion that you have hid behind. Defining this will be the key to like the early retirement and what follows suit.
- The number game is what you have to play. Now it is time for you to replace 80% of your pre-retirement income and the remaining part of it is the taxes or the other savings. It simply indicates that you have to be saving more, at least half of what you are earning right now, to retire early.
- Plan it all. It is tough to go big on saving especially if you are used to lavish spending. Prioritise your expenditure and know how much of it is irrelevant. It is time to be tough on yourself if you want to relax later.
- Seek help. If at any point in time, you feel stuck, ask for the expert’s advice. In fact, you can connect with a financial advisor who will help you manage your wealth accordingly and guide you with the right set of investments. Go for it.
So, by now if you still think that early retirement is a myth, then allow us to burst it. Go ahead, spend right, save more and follow your dreams as early as possible.