Have you ever thought of retiring early? Many people do wonder if this is possible. While you here doubt the possibility of such happening, people are already making moves to make it happen. Here are some of the ways you too can make it happen.
Delay gratification to invest
The most significant way to make retiring in your 30s a reality is to cut down your spending drastically and make informed investment decisions with your savings. By cutting down your spending, we are not saying you should cut your coupons and thrift expenses. Identify what takes the major chunk of your income and cut it down significantly. Housing, transportation and food are among the major culprits.
Live a cheap life
Living a cheap life comes with taking a lot of decisions that may hinder you from a lot of life’s exciting moments. City living is never going to ensure that you retire early because of the several money-grubbing side attractions that come with it. But if you can make up your mind to ditch the city with its insanely high cost of living, there is a high chance of retiring very early. By learning the art of extreme frugality while you are still in college, you are already preparing yourself to a life of early retirement.
Look for regions with low taxes
By the time you calculate just how much various taxes are eating form your income; you will come to understand that high taxes are great hindrances to retiring early. Tax payment differs from region to region. By identifying those regions that are tax-friendly, there is every possibility that you have hit a goldmine to retire early if you decide moving to such region. There is even some set of individual who have simply find ways of optimizing their tax to a level that they pay so little while their mates are coughing out a significant portion from their income as tax.
Reprogram your mindset
The most important thing you need to do in order for you to retire early is to break away from conventional programming that upholds the notion that you must work till you get old before you can retire. There is no law that says you must work till you are sixty-five before you can retire. Lean away from this mindset so that you don’t get stuck into the ideology of working till old age before thinking of retiring. You don’t just have to keep working simply because you are young. Retire early, if possible retire before your parents do.
Start saving early
While savings can assure you of a secured future, early savings will surely position you among the few people with the capacity to retire early. While you are still young and involved in a good-paying job, save as much as you can. Even, while in the college, try as much as possible not to rely on student loans if you want to achieve financial independence early.