Experts have told us that in order to maintain or do better on current standards, we need to have about 80% of your annual income at hand. Crunch the numbers: 805 of your current annual salary multiplied by the number of years you anticipate to live in retirement.
Cut down on expenses
Live as frugally as you can now in order to be comfortable in the future. Look at what you spend now, throw out the luxuries you can definitely survive without.
With extra resources, identify the investments that will bring you solid returns over time such as real estate or a sound business venture and diversify your investment selection so you can ensure financial security.
The investments you make influence the level of comfort of your retirement. For early retirement, you ideally require to have invested in income generating assets such as real estate or a business venture. Real estate is generally quite reliable as it keeps appreciating in value. Diversify your investment portfolio, having investments in a number of different areas so as to ensure financial security.
Work down your debt. Have open conversations with those that are owed to have plans to make sure debt is reduced and doesn’t become a feature for payment in your retirement years.
Get Passive Income
Maximize options to acquire income that you don’t have to actively work for. Monetize some of the things you like to do for fun to ensure a steady, reliable additional income stream.
Take care of insurance
Health challenges will come as you get older. Getting insurance in place so that you will not drain savings on health issues that are bound to crop up later on in life, is a priority.
Contribute to a retirement fund
Align your pension account and make sure that you are saving at least 10% of your annual income through the years you are actively working. If you want to retire early, work smarter and save more today.