Got dreams of punching that time card for the last time? 😎 Wanna do it while you’re still young? Well, you can…as long as you don’t blow it! 💨
A little something called FIRE (Financial Independence, Retire Early) has become *quite* the trend in recent years. 🔥 In a nutshell, it’s all about socking as much of your income away as possible (50-75%) so you can retire sooner.
Here’s Five Fast Facts on what not to do to retire early:
- 🕰️ Time Keeps on Slippin’ - You know how much the current you spends. What about future you? It’s common to assume you’ll be the same, but that’s a big mistake that could cost you. When planning for early retirement, think about how much your life will change (i.e. having kids or relocating to a new place). The economy and markets will change, too. The key is to adjust your plans as you move through life…so you can afford it!
- 🧑⚕️ Health is Wealth - Sure, you might be young now, but yes, you will get old. Skimping out on health care coverage is a no-no. Medical debt can be crippling and will definitely take the wind out of your early retirement sails. If you retire early, make sure you pick up independent coverage or hop on a spouse or partner’s plan. It’s also not a bad idea to start up a health savings account (HSA).
- 🎢 Highs and Lows - When the stock market’s on a winning streak, it can make you even more jazzed to retire early. However, the market runs in cycles. What goes up must come down. To make sure your money weathers the storms, make sure your investments are a healthy mix. That could look like a combination of stocks, bonds, and real estate. Pro tip: find a financial advisor who can help you create a winning combo.
- 🗣️ Let’s Talk - A goal to retire early comes with its own unique expectations. If you’re in a relationship, it’s important to communicate clearly with your partner. Avoid money fights by getting on the same page in terms of savings, budgeting, and lifestyle choices.
- 😴 SnoozeFest - Did you know that many retirees complain of boredom? Yeah! Without all that water cooler gossip, what will you fill your days with? In addition to a financial plan, make sure to plan fulfilling activities. Pick up a new hobby, volunteer in your community, or head back to school. The world is your oyster.
🔥Bottom line: Retiring early will have you saying “YIPPEE” instead of “hip hip…replacement!” If you want a quicker way to retire early, there’s always a life of crime. J/K - please don’t commit any crimes (while we’re looking). Love saving at the grocery store but hate coupons? Check out these top tips.
On the path to an early retirement?
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