How would you like to retire early? Maybe 62 is a good age or maybe you’d like to retire at 60 or even 55.
But unless you’ve won the lottery, have a government pension, or are the favorite niece or nephew of a rich uncle, you may find it difficult to achieve your goal. If can still be done, though. You have two options: cut your expenses or increase your retirement savings. Better yet, do both.
More specifically, you should be able to take that job and shove it at an age earlier than 65 if you do the following:
Cut back on your expenses. Even people who think they’re living frugally usually aren’t. How often do you dine out? Do you stop for coffee on your way to work? What do you spend on hair stylists, clothing, manicures and pedicures? Do you do your own landscaping and mow your own lawn?
Non-essential expenses add up. Review everything you spend and make a cost-benefit analysis. Determine whether the convenience and pleasure you derive from your expenses is worth the investment. Maybe Two-Buck Chuck is no substitute for your favorite Côtes du Rhône, but would you rather drink good wine or retire early? You may not be able to do both. (more…)