Financial Tips

Early Retirement and How to Make it Happen

Many people dream about retiring early, but if that’s your goal, you’ll need to save enough money to make it happen.

To find out if you have enough saved, you’ll need to do some math.

  1. Add up all the expenses that you’ll need to cover. This includes a place to live, food, utilities, health care, and any other costs you might have. You should also consider things like hobbies and travel.
  2. Once you have an annual estimate, with some left over for unplanned expenses, multiply that amount by the number of years you might be retired. This number depends on several factors, including when you want to retire, and how long you expect to be retired. Since it’s not uncommon for people to live into their 80s, you’ll want to be sure you have enough saved. If your goal is to retire at 45, you’ll probably want to plan for about 40 years of retirement.
  3. Now think about how you’re going to fund your retirement. Do you have an IRA, 401k, or other investments that you’re contributing to regularly? Do you have a pension plan, or expect any Social Security income?
  4. Add up the value of your savings or other income sources, and compare it to your expected expenses. How do they line up? If your expenses are less than your income, you’re good to go.
  5. If your expenses are higher, then you’re going to need to make some adjustments to your plans. Consider ways to boost your savings, or look for places to trim your budget.

You should also revisit your numbers every year to make sure you’re on track and adjust accordingly. That way, you can reach your retirement goal with enough to live comfortably.

If you’re serious about planning for the future, you should ensure that you have a savings account that supports future savings. Check out our savings accounts today!

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