Some may have the goal of retiring early in order to enjoy life when they are still young and energetic. But many different factors, like fluctuating house prices or tumultuous stock markets, can make those planning for early retirement uneasy. Feeling financially insecure, most don’t dare to take the plunge and retire early. However, early retirement is easier than you think. Coming up with a solid game plan is key. Want to retire before the age of 65? Here are 3 tips to follow to help actualize your dreams of early retirement.
Live Below Your Means: Save and Downsize
Your social security benefits can only be accessed when you’re 62, so you can’t rely on those funds if you’d like to retire early. In this case, retiring early means relying on your savings. The recommended saving amount for those in their 20s and 30s is around 10 to 15 percent of total income. But if you’re planning to retire early, it’s time to get more ambitious with these saving goals and spend less. Start off by reserving 20 percent of your income for retirement savings. Then adjust your expenses accordingly, such that you don’t land yourself in more debt. Another way to retire early is to downsize. Once your children are grown and gone, it’s possible to move somewhere smaller – since you now need to accommodate fewer people. Finding a less expensive property is possible in the less pricey parts of town. Downsizing also implies lower utility bills, fewer repair and maintenance costs, which all add up to save you valuable time and money.
Take Up Freelance Work
If you’ve spent your days at a rigid 9-5, taking up a part-time job that gives you some element of freedom and flexibility could be ideal for you. Freelance work allows you to work on your own terms and build up on your savings so that you can live comfortably even in retirement. It can be as simple as turning your hobbies into a source of income. If you enjoy garden work, get involved with local nurseries for paid plant care, or help other homeowners with their gardens.
Budget Your Retirement
Before you retire early, you’ll have to pay off your mortgage, but also a variety of other bills. Household bills can range from car payments, insurance, personal expenses and groceries. To get a realistic understanding of whether early retirement is possible for you, map out what your current monthly expenses are and compare them against your income and projected social security benefits. Sitting down to create a monthly budget will be an incredibly beneficial exercise. It’ll help you understand whether your current levels of income can responsibly finance your current spending habits, and you can make adjustments accordingly!
Keep Retirement Affordable With Blue Ridge
Retirement communities are more affordable than most people expect. The costs of everything ranging from meals to transport are neatly summed up in a monthly fee. Cut out monthly stresses about your utility bills and grocery budgets, or unexpected car repairs, making budgeting for retirement a little easier. Life at Blue Ridge’s senior living community remains especially stress-free, with our lifetime rent-lock that ensures our residents will never have to pay increasing rental prices.