Tips to help you retire early
Most workers aspire to retire early and continue leading the kind of life they had while working and many times a better one. However, giving up work before retirement remains one of the hardest decisions to make. To many, leaving work for early retirement can only happen when they have won the lottery or have saved and invested enough so that they can live comfortably.
One does not have to win the lottery to make this move; all it requires is sound planning. Planning will make it appear easy, make things promising and even push you to leave your current job.
First, you need to come up with a savings plan, start saving early and do it regularly. This is an important aspect when it comes to wealth creation. Most people argue that they need to have a large income for them to be able to save, but that’s just a perception. One doesn’t need to be earning a huge income to save. All you have to do is set some of your income to save for retirement. For example if you start saving fifty dollars per paycheque from your first job, in ten years’ time you will have saved six thousand dollars exclusive of interest earned.
Assuming that you will be getting a raise and even moving from one job to another, this amount is bound to increase as the years pass. Remember that these are just part of your savings, so you will also have saved a substantial amount and started your own investments. With a regular income from investments and saving regularly for some years, you can now retire early and live comfortably.
Taxation can take a great toll on your saving plans, they reduce your income. However, you can take advantage of tax allowances to increase the amount available for saving. With such, you’ll be in a position to increase the amount saved, increasing your retirement package and also the amount available for investment.
When investing, you should think of long term investments, buy shares and bonds, a portfolio which will grow over the years, tripling the amount invested and that keeps accumulating over the years. You’ll be assured of enough to allow you live comfortably during your retirement years.