How to Retire Young
Being able to retire young is the new American dream. There's something liberating about saying goodbye to your desk and office at age 40 or 50, as opposed to 65 or 70. The key to being able to retire young lies in the here and now. If you deal with your money wisely today, you can have enough saved up down the road to live a comfortable life.
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Instructions
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Spend less now. For many people who have trouble making ends meet despite a medium to large salary, the problem isn't their pay scale; it's their taste for finer things. The sooner your realize that more expensive cars, vacations, clothes and homes don't really make your life any better, the closer you'll get to retiring young. Begin with a budget and cut out the things that aren't necessary. No one needs 400 cable channels. Check out a book from the library or go for a walk instead.
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Save more. This goes with the previous step. If you spend less on your monthly expenses, you have more to put aside for retirement. Ask your employer about depositing part of your paycheck automatically into a 401K or savings account so that you never see it. Stash away bonuses, tax refunds and gifts of money.
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Learn to invest. Keeping your money under your mattress for 30 years isn't a smart choice. Think about stocks, bonds and other investment opportunities instead. You may want to enlist the help of a financial adviser to help you weed through the terminology and come up with a program that's right for your situation.
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Pay off the house. If you plan to stay in your home once you retire, consider sending in an extra payment or two a year to go toward the principle balance. Doing so can shave years off your mortgage, and allow you to retire without having a monthly mortgage hanging over your head.
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Comments
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taskeinc
Aug 06, 2008
That's one goal that most people have - to retire early .. thanks for sharing -
felinedesign
Jun 27, 2008
I think for every person it is different. Some need millions, while some can make it on $500,000. I think the idea is to establish good habits at a young age.
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rayscraggs
Mar 04, 2008
I've retired at 50 and this is nothing like the detail of what is required.....for example how much money does a person need to retire at 50? All you say in your article is save money which is pretty obvious....
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rayscraggs
Mar 04, 2008
I've retired at 50 and this is nothing like the detail of what is required.....for example how much money does a person need to retire at 50? All you say in your article is save money which is pretty obvious....
