So many people are thrown into a life of managing corporate strife, struggling to make ends meet, attempting to balance work and family, trying to earn enough to see the kids through school and provide food on the table, whilst waiting for that day when they could finally make enough to retire. The question on their minds is always, “When can I retire?”
Yet, early retirement is not uncommon. There are some people who choose to plan their finances early, grow their investments efficiently, and manage their expenses prudently in such a way that they could choose to retire earlier than planned.
Many think that retiring early would mean having to eat simple food at home, go out less, work multiple jobs, save more money, and spend less.
There are also people who think that being single would mean less liability, less spending, and the ability to have more savings, and more disposable income, which could make early retirement for them a possibility.
Whatever you do to achieve early retirement, it would be wise to take a step back and re-evaluate how you could get the most out of life, and live it to the fullest whist making an early retirement a reality.
The most important thing is to change your mindset about work. Work is not meant to just help you earn money for your daily expenses, pay the bills, and grow your savings so that you can retire one day. Work should be seen as a way you can add value with your skills and talents, grow your knowledge, and enrich your experience in a way that will help you lead a more fulfilling life.
Secondly, a fulfilling life can only be had when you make the right work-life choices. Know your priorities, spend time with the people who matter, do what brings you joy, and make time for self-care.
Together with the right mindset about work, and the wisdom to make the right work-life choices, the next piece of the puzzle to support your goal to retire earlier is prudent financial planning.
Here are some tips to consider.
- Evaluate your financial situation. Have a view of how much you have in the bank currently, what your assets are, and what expenses are necessary and not.
- Set aside some savings. The amount of savings can never be too much or too little. As long as you have the discipline to set aside some savings every month, you are already taking a step in the right direction. Some people swear by the method of having different bank accounts, one for expenditure, and another for monthly savings.
- Grow your savings. There is no point in just keeping your savings in the bank, where they will earn very little interest. Think about making your savings work harder for you. And that means setting aside a portion of those savings to invest prudently according to your risk profile. If you are unsure about where to invest your money, consult the expertise of a professional financial advisor.
- Seek the advice of a professional financial advisor. In fact, don’t wait until you are ready to invest some money to seek help from a professional financial advisor. Right from the start, the professional financial advisor serves to:
- First, understand your overall financial portfolio.
Understanding your overall financial portfolio is crucial for financial success. It involves analyzing your assets, liabilities, investments, and income sources. By gaining this comprehensive view, you can make informed decisions, identify areas for improvement, and effectively plan for your financial goals.
- Second, how it is being managed currently, for the mid-term and long-term
Assessing how your financial portfolio is being managed currently, as well as for the mid-term and long-term, is essential for financial stability. By evaluating your current management strategies, you can identify any gaps, risks, or areas for improvement. Planning for the mid-term and long-term helps ensure that you are aligning your investments, savings, and financial decisions with your future goals and aspirations.
- Third, listen to what are your future career, lifestyle, family, relationships, and financial goals
Listening to your future career, lifestyle, family, relationships, and financial goals is crucial for personal growth and success. By actively understanding and acknowledging your aspirations in these areas, you can align your actions and decisions with your desired outcomes. This awareness enables you to make strategic choices, develop effective plans, and work towards a fulfilling and well-rounded life.
- Fourth, provide holistic advice on how to manage them and live life to the fullest at the same time
Set clear objectives, create a realistic timeline, and allocate dedicated time and resources to each aspect of your life. Regularly reassess and adjust your priorities, practice effective time management, seek support from loved ones, and maintain a healthy work-life balance to ensure overall well-being and fulfillment. Remember that self-care, mindfulness, and embracing experiences outside of work are essential for a well-rounded and enjoyable life.
5. Start a side gig. It could be a small home-based business, a hobby-based business, or a consultancy. It doesn’t matter how much money it makes, as long as it provides you with something you could continue to keep active while earning some money when you retire. If you could continue to generate a stream of income during your retirement in the future, it is not only financially productive, but it also keeps you mentally and physically fit and socially engaged
If you have enjoyed this article, do connect with the Vastus Wealth team at enquiry@vastuswealth.com and do follow us on our IG accounts, @vastuswealth and @optimalwealthness. If you are aiming for a life of optimal wealthness, get more tips here at the Optimal Wealthness Medium Blog.
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