Jasz
VIP Contributor
Retiring early isn't an impossible dream. it just takes a little bit of planning. Here are 4 things you can do to get yourself on the path to retiring early:
1. Figure out how much money you'll need. To retire early, you need to know how much money you'll need to cover all your expenses in retirement. Keep in mind that once you retire, you won't be getting a paycheck anymore, so you'll need to have enough money saved up to last you years and years (and maybe more if you live longer than expected).
2. Start saving as early as possible. The earlier you start saving for retirement, the better, because compound interest will work its magic and make your money grow faster over time. If your employer offers a 401(k), contribute at least enough to get your full employer match, because that's free money! You can also open your own Roth or traditional IRA and contribute annually up to the limit, but remember that IRAs have contribution limits that are lower than 401(k)s.
3. Cut back on unnecessary spending. Do some serious budgeting and figure out what expenses are dragging down your retirement savings goals, then cut them out of your life ASAP.
1. Figure out how much money you'll need. To retire early, you need to know how much money you'll need to cover all your expenses in retirement. Keep in mind that once you retire, you won't be getting a paycheck anymore, so you'll need to have enough money saved up to last you years and years (and maybe more if you live longer than expected).
2. Start saving as early as possible. The earlier you start saving for retirement, the better, because compound interest will work its magic and make your money grow faster over time. If your employer offers a 401(k), contribute at least enough to get your full employer match, because that's free money! You can also open your own Roth or traditional IRA and contribute annually up to the limit, but remember that IRAs have contribution limits that are lower than 401(k)s.
3. Cut back on unnecessary spending. Do some serious budgeting and figure out what expenses are dragging down your retirement savings goals, then cut them out of your life ASAP.