Retiring early is difficult, no doubt about it. And if you're reading this article, I'm assuming that it's because you want to retire early too.
The internet is filled with articles of people who have managed to retire before the age of 50/60/70 etc.. But what makes their story so much different than yours?
Now don't get me wrong - I'm not saying they haven't worked hard for their money, but there are several factors that will be beneficial if you would like to retire at an earlier age than most people.
First off, forget all the money saving tips on Pinterest that tell you how to save £10 a month or whatever other rubbish they post up there frequently (heyyyy... wait a minute... I write a blog! Shhh). No, you need to work smart. And while saving money is important, there are many other ways people retire early that don't involve any sort of scrimping and saving whatsoever.
Without further ado, here are five reasons why YOU can retire early too:
1. Not spending money on wasteful things/not getting into debt
See this hot girl/guy who has been eyeing you up at the bar? You want to take them home BUT your credit card bill last month was over your budget.. what do you do?! Well if you're not a psychopath you probably turn away from them and spend time with a good book instead.
Similarly - quitting smoking, cutting back on drinking, eating out less often, not taking taxis etc. might seem like little things to do - but they can add up significantly over time.
2. Working hard at the right job (and getting paid well for it)
If you happen to have a good paying job, this will work in your favour when deciding how much money you spend each month/year etc.. If you are able to retire early on only one income, then that's even better! The more money you make, the more money you can save and retire with quickly.
3. Not being tied down by debt or expensive mortgages
When people are working towards retiring early - buying a house is usually something that comes last on their list of priorities. Why? Because a house is a liability. Not only will it cost you a lot of money each month, but if you retire early and can't work anymore - chances are you'll have to sell that house you got at such good price.. not so great now huh?!
Similarly - cars are another huge expense that people with financial freedom try to avoid as much as possible. A new car loses its value the very second you get out of the dealership doors. And believe me, if your aim is retire early; there's no point in wasting money on something like that! Sure, we all need transport - but when was the last time you thought your car had reached 'old age'? Exactly my point...
4. Investing wisely
I don't believe anyone who tells you it's easy to retire early - as much as I'd like it to be! But what I do know is that if you're willing to spend a little bit of your time learning about investing, then you can retire earlier than most people.
Personally, I'm very interested in stocks and the stock market. And every month or so when I get a pay check from my job, instead of going out for dinner or buying a new phone etc... I invest the money into shares. Since doing this consistently over time, my investments have been paying off really well. So by keeping your money invested rather than spending extravagantly on things that lose value quickly.. you'll see significant results after a few years.
5. Make wise financial decisions when it comes to money
When people retire early they usually retire knowing that their investments/savings will support them for the rest of their lives without much effort needed from them at all. In this sense - being smart with your savings is a really important step towards retiring early. Because if you retire and have not set yourself up well enough financially.. guess what? You'll probably find yourself working again pretty quickly, which defeats the whole purpose of retiring early in the first place!
Good Luck
