How to Retire Early and Why You Should

How to Retire Early and Why You Should

Does your current job make you leap out of bed every morning with enthusiasm? If not, why not retire early?

Is the career that you’re currently building your personal definition of passion? If it doesn’t get you excited and light you on fire with physical and mental energy, then you should be focusing on early retirement just as much as you focus on advancing that career. Retirement allows you the freedom to do things that will give you that magical enthusiasm for life.

Yes, there are people who leap out of bed with that vigour for life. No, they aren’t the rich and famous, and they haven’t all had piles of money handed to them. They watch their pension pot build just like you. Many once worried that they would never have enough in that pot to retire. The catch is that they found a way to make early retirement work so that they could take that whirlwind cruise with someone special or spend their days hitting golf balls and sipping drinks on the beach.

Ways to Retire Early

How does one make early retirement happen? Many people think of retirement solely as an accounting of the money that they have accumulated in their pension pot and the minimum age that they’re allowed to collect that money without financial penalty. It often comes down to one sad reality: most cannot afford to take that money until they’re 60 or even older because they simply haven’t saved enough to produce a reasonable retirement income.

Planning to retire

The solution is to stop thinking solely in terms of the pension pot scheme. Start thinking of ways that you can move toward retirement without touching that pot. This is when you really develop the mind of an entrepreneur who can legitimately retire early without sacrificing a comfortable quality of life.

Here are some plans that have successfully helped many other people retire early:

  • Become a part-timer. If you’re getting up there in age but can’t afford to retire, consider working a part-time job or finding a seasonal position. This keeps some income flowing into your pocketbook while giving you more time to travel, to make art, or to explore other hobbies that light you on fire.
  • Increase your contributions to your retirement pension so that you have more money available when you do reach retirement age. If you can sacrifice more of your income now in order to push more money into your retirement pot, then you may have the means to retire at the earliest possible age. That’s probably no earlier than 55, and many still don’t consider this early retirement. Yet, it is much earlier than many others are able to retire.
  • Start a business that gives you the freedom that comes with retirement. You work for yourself and can take your work anywhere in the world, allowing you to spend time with loved ones and travel well before retirement. If you build a business that generates more money than you can earn through your current job, you can accumulate the wealth needed to officially retire early.

The best strategy is perhaps a combination of all three options. Start by cutting down your expenses and living frugally so that you can afford to contribute a bit more to your retirement pot. Start a business that gives you more flexibility and that allows you to work on your own terms. When your business starts to bring in a little money, consider working part-time so that you have more time to grow that business. Perhaps you can move into a seasonal position that gives you longer blocks of time to work on your business.

The key to a plan like this is to start a business that gives you more freedom. If you take action in that direction, you may be surprised at how fast you start earning more money, saving more money, and spending more time doing the things that you love. It won’t happen unless you take action. The earlier you start, the earlier you can live the dream of early retirement.  

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