While many people set their sights on retiring at 60 or 70, a growing number of people are feeling like there’s more to life and want to retire earlier. There are those that are skeptical, but according to experts at Gallagher Financial Group Dallas residents are already realizing this dream.
Pursuing Early Retirement
Experts say if you want to retire early, keep it simple. Many people reject consumerism as a start. In societies where consumerism is often more a source of stress than pleasure, many dream of selling everything they have and reducing their belongings to the bare minimum.
Many people say with fewer possessions, you can save a lot and live a frugal “glamourous” life of leisure. This delivers greater financial freedom and happiness, as well as a smaller environmental footprint. This thinking resonates with many people.
Nowadays, all the same options are open to everyone but there is more awareness and community support for this type of effortless, efficient living. Minimalism is not almost empty white rooms with little furniture, it’s just being smart about purchases. Experts say living a lifestyle about 50% less expensive than most of our peers will help you retire earlier than everyone else.
Embracing New Savings Strategies
There are key savings strategies that are necessary to retire early.
- Pay down your debt. Your number one priority should be paying down debt, like credit card bills and loans.
- Try to move closer to your employment. Cycling, walking or riding public transportation is cheaper than driving. For example, the further away from your job will drive car costs up.
- Honing your cooking skills. Just $50 every week at a restaurant translates into nearly $20,000 in 10 years.
- Stop buying stuff. Browsing shops can turn into an expensive habit and searching online doesn’t decrease the costs any.
- Cut your grocery bills. Purchase fresh foods instead of pre-packaged meals. Not only will you save almost 30 percent, but leftovers can also be tomorrow’s lunch
There are numerous ways to cut expenses and save more money but oftentimes, people are not willing to sacrifice.
How much do you really need to retire? It pays to visit a financial planner because most individual’s calculations are wrong. Start by taking your annual expenditure and multiply it by 25. But keep in mind, early retirees often live off their investment income, not spend down their capital. If you can live off a third of your income, and devote the other two-thirds to savings, you’re in better shape to retire early. Then if you continued to live that way, your nest egg would survive for the rest of your life.
Experts also point out that accommodations play a significant role in your retirement. You have to live somewhere, but if you choose a place that is tax-friendly, and requires minimal living expenses, your retirement fund will go a long way.
Saving is not an easy word but if you keep your sights set on early retirement, it becomes the most significant part of the plan.