So how exactly can you find 5 ways to retire early? Official retirement ages don't really begin until 65 when you can actually get Medicare. Of course, at 62 you can begin taking social security, but you will be penalized and might not have access to health care, which makes retirement a far-fetched dream at that point. How can you manage this Herculean task when there seems to be so much working against you? Here are 5 ways you can create the right financial climate for early retirement.
- Save money. Duh! This is obviously the cornerstone to any retirement plan, but it is especially important to those individuals who plan to retire early. You simply must save as much money as possible or there is no way you are heading into early retirement.
- Stop upgrading your electronics. People buy new televisions, new computers, new laptops and new electronic gadgets every day. If you look at your spending for the past few years, you will see that you have probably spent thousands of dollars on these items without even batting an eyelash. stop doing this if you want to retire early. Use an old television set, go back to using your walkman, and go to the library to use the free computers when yours stops working.
- Don't buy a new car. Instead of buying a new car as soon as you run into mechanical difficulties in your existing model, get it fixed. If it is beyond repairing, then you should consider buying an inexpensive used car that has been checked out by your mechanic. The interest you'll pay on a new car as well as the ridiculous profit margin will cut thousands or tens of thousands out of your retirement savings plan.
- Bank your raise. Every time you get a raise at work, bank the additional income and save it for retirement. Do not increase your spending to match your raise. Save it.
- Don't mortgage your home to pay for your children's college education. If you were not able to save enough to cover your children's education costs, then they may need to supplement your contribution with working, loans or scholarships. If you take out loans or a second mortgage to help them, then you could ruin your chances to retire early.