You don't think you can wait until 65 to retire? Then you need to know that it's not necessary to wait that long! You only need to have a plan.
Although the standard retirement age is 65, it's not necessary to wait until then to actually retire. You just need a plan to save enough to reach the required portfolio for retirement.
With a plan and some simple steps you will be able to reach this requirements and begin to enjoy your early retirement!
1. Save & Invest
The first thing you should do is open a retirement account. Some employers offer this kind of accounts, but if that's not your case, then you should start analyzing your retirement account options to open your portfolio.
In some cases, you can invest up to $5,500 each year! Pay special attention to the condition of money withdrawal, as most companies do not let you do it before the age of 60.
If you are willing to retire before you can withdraw the money, then you should start making your money work for you. If you learn how to be a good investor, then you can retire earlier and live on those investments while you wait to withdraw your retirement pay.
There are some risk free options to invest and save your money, you just have to take into account the interest rates and the period in which you can access the money invested.
Some options are savings account, where you can access money easily but with lower interest rates, or a certificate of deposit, in which money will not be accessible for a short period of time but pays better interest.
2. Spend less
It may seem obvious, but it's not always easy to achieve.
You need to cut those luxurious expenses and identify your necessities. Just reduce the unnecessary spending and focus in what you really need to spend your money on.
For example, you can change your cell phone plan to a cheaper option, reduce your spending in clothes or try to avoid having huge credit card debts.
3. Earn some extra cash
Although the idea of extra work seems exhausting, you have to remember that you are doing this to retire earlier!
So, start checking if you have a hobby you could capitalize or if you can dedicate a few hours a day to add some freelance work.
You have many options available, like painting, delivering pizzas or writing in blogs. Choose the one you like the most and start working extra for an early retirement.