Early retirement may seem like a pipe dream for many people. It sounds pretty great, but how in the world do you make it happen? About 20 percent of workers think retirement in general just isn’t possible.
Another 54 percent have no idea how much money they’ll need to retire. I can definitely see why early retirement doesn’t seem possible.
After doing some research, I was happily surprised with what I found. It’s possible for people to retire in their 30’s, 40’s, and 50’s. And you don’t have to be a millionaire to make it happen. The main factors are planning, researching, and investing. Below you’ll find 12 tips to retire early to help you get started.
1. Review Your Current Monthly Expenses
Reviewing your current monthly expenses is crucial whether you retire in 10 years or 40 years. Of course, it’s a top priority if you want to retire early. There are a few very helpful tools you can use to calculate your spending. I like the Quicken budget calculator because it’s easy to use, but a simple spreadsheet works just fine.
You likely know your main expenses off the top of your head – car payments, rent/mortgage, and so on. But don’t forget things like toiletries, your Netflix bill, and other small things. These really add up! Consider writing down everything you spend money on over the course of 30 days, too.
This step is essential in order to move on to the 2nd tip. Once you know your exact monthly expenses, you can start lowering them. That may not sound easy, especially if your budget is already tight.
But I’ll offer up some examples of ways you can cut costs here and there. Every cent you save for early retirement is important.