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Freeman's Blog


September 17, 2014

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A fair number of people, it seems, believe that “early retirement” is an unachievable financial goal for most Americans, or that it isn’t worth doing because retirement is akin to having no purpose in life.

But, if you’re longing for retirement, you’ll quickly see that it takes serious dedication. Here are some things to consider before you decide to “pack up” and retire:

1.  Track your spending

Start writing down (or entering into a computer) every dollar you spend. After a month or two, you will discover where to reduce expenses. Within a year, you’ll be in control of future spending. Also keep a running total that includes the previous year, such that Jan. 1 of the second year is day number 366 (so they divide the day’s total by 366). This will give you an average of how much you are spending per day.

2. Save, and then save more

Once you’ve started to take control of your spending, it should be easier to see how to reduce outlays and add to your nest egg. A general rule of thumb is to save 10% to 15% of your gross income each year, but the precise figure will vary depending on your age, current retirement dollars and goals.

3. Put peer pressure into perspective

Early retirees have to resist pressure to spend. With pre-determined limitations on cash flow, you must be disciplined to keep your budget in check. Ignore what others have to say about your decision. Stay focused on why you decided to retire early.

4. Choose simplicity

Make a point of keeping a low-cost lifestyle. That doesn’t mean denying yourself things. But, it does mean you will need to find happiness in experiences rather than “stuff”.

Source:
Marketwatch.com Feb 6, 2014  – 8 secrets for success from early retirees

Freeman Owen, Jr - Host of "Safe Money Talk" on CBS Radio The Big Talker 1580AM I want to help you reach you retirement goals.  Early planning is the key to an early retirement. Let’s review your retirement strategy together.  Toll Free: 1-866-471-7233 | MD, VA & DC.