How to Retire Sooner Than Later
Cut back on spending. Most Americans spend more money than they actually make. This equation most likely equals debt, which will eventually result in an excessive pile of bills to pay. The majority of people want to retire as early as possible, which is especially the case for the millions of baby boomers beginning their retirement now. Saving money is critical in retiring early. For many people living in today’s materialistic culture, saving and not spending is extremely difficult to do.
Retiring early generally means making sacrifices beforehand that may not lead to the most glamorous lifestyle in the beginning. For instance, work a second job. No one ever said retiring early was going to be easy. More income now means more income later for retirement. This is, of course, easier for people with no children, spouses, or family commitments. As MSNBC states, “Millions of Americans are finding they need two jobs to make ends meet. But the percentage of workers holding two or more jobs varies wildly depending on where you live…In Arizona, which had a 9.6 percent unemployment rate in July, just 3.8 percent of workers held more than one job in 2009, the most recent data available from the
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Bureau of Labor Statistics.” Especially in a weak economy, people need to save as much money as they can while still being able to afford the essentials like food, rent, any type of vehicle payments, and other necessary bills.
Finish off the car payments. Some households are able to become a single car family. Although it is not always convenient or easy, especially when there are kids involved, people operating a vehicle have many costs involved, even when the car is paid off. These costs include gas (not to mention the rising prices), insurance, maintenance, and repairs. As US News mentioned, “Getting rid of the second vehicle can save you thousands of dollars for retirement. Commute with others, take public transit, share a ride with your spouse, or ride a bike instead. It can be done with careful planning.”
If there are kids involved, cut them off at an appropriate age. Many parents now hold onto this generation of “boomerang children,” who still live off of their parents, even when they are settled into their first (real) full time job. As many people know, kids are expensive and having them, at a minimum, pay for their own cell phone bill and /or car insurance can help put more money towards retirement plans.
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Going on diets does the same. Most Americans eat too much and therefore spend too much of their income on food. Eating out all of the time is a huge cost, not to mention a generally unhealthy habit. Also, quit running to the nearest Starbucks every morning; use your own coffee maker collecting dust on the kitchen counter.
Financial discipline is key to an early retirement. Living within your means is the healthiest and most financially responsible way to live. Although this can mean different things for different people, everything is relative. As Yahoo! News stated in the article 6 Excuses for Not Saving for Retirement, “The 2010 survey, released in March, found that 54 percent of workers have less than $25,000 saved, excluding the value of their home and any defined benefit plans.” Saving for retirement in today’s unstable world can reduce stress and lead to a happier life after work.
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