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Aim to save at least 30-50% of your income if you wish to retire early. Start saving early and let the compounding do its job.
Don’t just save or invest in anything; plan out your investment strategy to maximise your profits. Build a diversified portfolio and aim to avoid risk to grow your wealth.
If retiring early is your priority, make lifestyle changes in your daily expenses and overall spending to save more. Find and eliminate unnecessary expenses right away.
If you want to retire early, you must have more than one consistent income source that boosts your savings. Explore small businesses, freelancing, rental income, etc.
When your income increases, it doesn’t have to necessarily mean that your spending has to, too. Avoid lifestyle inflation when you can and save the extra money for the future.
Know exactly when you want to retire and how much you want to have saved till then. Make early targets and plan your savings and expenses accordingly.
Pay off the largest, high-interest debts first and avoid taking loans for depreciating assets (like cars). Further, avoid long-term EMIs until absolutely necessary.
Plan to retire in a low-cost area where you can make your savings last longer and still maintain a quality lifestyle. With a bigger purchasing power, you can enjoy your retirement.
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