Fast-forwarding Your Retirement Saving
There are many reasons why you may find yourself (and your finances) ready for retirement sooner than you thought. A dramatic medical emergency, job loss, or even the death of a spouse can leave you one emergency away from financial disaster. You’ll need to be prepared.
That can seem daunting. How do you retire early if you’re still in your 20s or early 30s? Well, even if you’re just starting to save for retirement, you’re not too late.
Build a Solid Emergency Fund and Start Investing
Quick quiz: What’s the best way to prepare for an unexpected financial crisis?
An emergency savings fund!
We’re talking about more than just a few hundred dollars for an emergency – this is your savings fund for the big one. Something that will cover your rent or mortgage for a couple of months or more. Unless you really, really hate debt, put debt repayment on hold and start building this fund. In fact, even with the debt issue, you’re better off saving first and paying off the loans later.
Let’s do a case comparison to demonstrate the point.
Preparing for a Future Career Change
If you are planning to retire from your job early and it’s something you’ve been dreaming about for awhile, then you’re likely putting a lot of thought into the type of life you’ll have when the time comes. Financial stability, healthy lifestyle and daily activities, high quality of life, time with your family and friends … the list goes on.
In the back of your mind, you may be feeling like things are a little uncertain since you have yet to make it official. It’s easy to assume you’ll get there soon enough or when that awesome new job comes open. It’s likely how you’re viewing any other goals you may have – you’re just a few steps away from getting there.
But what happens when you wake up one morning, turn over, and realize that the alarm clock isn’t going to go off? If retirement is something you’ve been planning for, then it’s easy to take those years for granted.
Preparing for Involuntary Early Retirement
Having a Plan B in Case the Long Predicted Social Security Crash-and-Burn Actually Happens
You Might Decide That You Want to Retire Early After All!
There comes a time in everyone’s life, when they may want to retire early. Most people think that the age that you can start drawing social security from the government, which is currently the age of 65, is the time you will retire, and most people start drawing their money then. However, I think you should start preparing for retirement now.
Here are four reasons why you should prepare for early retirement:
You may want to retire early.
This is the most common reason why people want to retire early. People realize that they are not getting any younger, and that they have worked long enough for their companies.
If you are 60 years old and still working, I would do everything and anything I can to make sure that I don’t make it to retirement. There is no need to be working more than a person needs to, and if you can find a better job somewhere else, I would seriously look into the situation and see if I could get a transfer to that other company.
I actually like the people who are working for me, and I think that I provide a quality product or service. But I don’t need to be pounding my head against a brick wall until I am 70 years old.
Creating More Options Overall
Why early retirement? To improve your overall quality of life
Get Started Now
Early retirement is not usually a goal that young people set out to achieve. They are more likely to be concerned with finding jobs that pay decent wages, getting married, and starting a family. Not much thought is given to the possibility that you might have to retire early.
So – why should you start thinking about early retirement now, before you are even close to that age?
Consider these reasons:
You Never Know What Might Happen
You can never predict what is going to happen in life. If you think about it, you can never predict anything. That’s why it’s best to be prepared.
For example, if you have planned an early retirement, you can dabble in a little part-time work at some point, knowing that you can walk away from it all completely at any time. An early retirement doesn’t have to cost a lot, either. It just has to work for you.