Early retirement planning can be as simple as reworking your budget to fit a frugal lifestyle in hopes of reaching certain goals before the age of 45. In fact, when planning early retirement, implementing a solid strategy is well worth the investment if you want to enjoy yourself when you get older. Looking to a future filled with fun rather than the drudgery of daily work isn’t difficult if you know what to do. Here are three strategies to help you with early retirement plans.
1. Discipline Yourself to Save and Invest
Before you can retire, you have to know how much money it will take to live each month, year, decade for the rest of your life if you want to quit working. This will take a sizable amount of money and hopefully, you’ll be able to implement a program that not only using a savings account, but also will grow. If you’re in your 30s and want to retire at 50, you may be able to start with $10,000, investing $1000 every month for 20 years with an interest rate of 6.5% and have a little over half a million dollars. However, thinking about a million dollars in today’s world, that’s not a lot. In fact, calculating a person’s average income times the number of years of an average life spans, is a little over $2 million dollars for the overall picture if you’re only making $35,000 per year. Talk to an investment professional on how to grow your money and budget it so you’ll be able to have enough funds to enjoy your life in the style you’re accustomed.
2. Use Multiple Streams of Income
Most people who are considered “rich” have various avenues to make money. Instead of relying on just one way to invest, they spread the money around. Paying down debt is a great way to increase your ability to save and invest. Getting rid of all the obligations you can as soon as possible will free up money so you can make it crow in other areas. Looking for things that bring in good interest and are low risk are great ways to save money for retirement. Planning for retirement means you may have to tighten your belt, but doubling up on mortgage payments when possible can give you tax breaks and lower the principle amount.
One very low risk way to invest is to buy other people’s tax bills they owe the government through tax sales. City and county governments sell property at tax sales and when you buy the property, your money sits in the fund for a while until the person either pays the taxes or you get the property. If the person pays the taxes, you get the interest that accumulated during the time they didn’t pay. Either way, you make money on the property and usually the tax rate is more than it would be if it was in a savings account.
3. Semi Retire Now or Take Mini-Retirements
Some people aren’t really worried about working for the rest of their lives and could care less where they live. Life for them is an adventure and moving isn’t a big deal. These people still make money periodically and have investments, but are mobile. They move south in the winter and north in the summer or have jobs they can do from any location.
Freelancing is a great way to work when you want and vacation the rest of the time. Instead of going to work everyday at an office, most freelance workers use home offices, work online or travel from one job to the next. Working on residual income, such as writing online for a site like Yahoo! Contributor Network is a great way to build a portfolio which will make you money from any location and continues to accumulate every day as long as you post. Within a few years, a disciplined person could have an accumulation of work that will generate an income as long as the Internet is viable.
There are many paths to planning early retirement and combining several methods, researching and building a portfolio of work can save you from difficult times when you’re older.For early retirement planning insights ask professional financial advisers, scour the Internet for ideas and make a strategic plan fitting your own needs and lifestyle.
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