Steps to Make Early Retirement Possible
Steps to Make Early Retirement Possible
There's no magic number when it comes to how much you should have saved up for retirement, but there are some general guidelines you can follow. For example, if you're aiming to retire at age 65, you'll need to have saved enough money to cover at least 20 years' worth of living expenses. Just how much depends on you and your current needs. You can check out Inlife's retirement calculator to help you determine how much you should have saved up.
Making early retirement in the Philippines possible isn't as difficult as it may seem. With a little bit of planning and some lifestyle changes, you can make your dream of retiring early a reality.
Here is our early retirement guide to help you make it possible.
What Do I Need to Retire Early?
1. Save, save, save
The most important step to retire early is to start saving for it now. The sooner you start saving, the more time you'll have to let your money grow. Try to put away at least 10% of your income each month into a savings or investment account.
2. Invest wisely
Another key to making early retirement possible is to invest your money wisely. This means choosing investments that have the potential to grow over time. Consider investing in stocks, mutual funds, and bonds. For a more secure option, you can take out a retirement plan in the Philippines. These types of insurance plans enable you to build up your retirement fund while allowing you to invest in secure vehicles so you can reach your goals faster.
3. Find a passive income source
Passive income sources are things that generate additional money without having to exert effort to do so. A popular example of a passive income source is a rental property. When you have a spare condo, home, or even room rented out, you get to earn additional money monthly without needing to put in hours of effort to do so.
4. Live below your means
If you want to make early retirement possible, you'll need to be mindful of your spending. Try to live below your means so that you can save more money each month. This may mean making some lifestyle changes, such as eating out less or driving a less expensive car.
5. Make a plan
It's important to have a retirement plan in place if you want to make early retirement possible. This plan should include how much money you'll need to save and where you'll get the income during retirement. Without a plan, it will be difficult to make early retirement possible.
Another way to make early retirement possible is to reduce your living expenses so that you need less money in retirement. One way to do this is by downsizing. Downsizing refers to simplifying your way of living, reducing your home maintenance and utility costs, and is something many empty-nesters and retirees should look into. This might mean moving to a smaller home, getting rid of unnecessary expenses, or even relocating to a cheaper area.
7. Stay disciplined
Making early retirement possible takes discipline. You'll need to be disciplined with your spending and saving habits if you want to retire early. This means sticking to your budget and not letting your lifestyle creep up.
No matter what approach you take, making early retirement possible will require dedication and discipline. But if you're willing to put in the work, it can be an incredibly rewarding experience. With a little bit of planning and some lifestyle changes, you can make your dream of retiring early a reality. Follow these steps and you'll be on your way to early retirement!
InLife details the differences between saving and investing in terms of goals, returns, rewards, liquidity, and which option is better for you. Read it here.
Planning to get a life insurance plan? Make sure you understand the basics of insurance first before you buy. Read our beginners's guide to get started.
Women, regardless of their marital status, need insurance. Learn why this is the case and find out how they can obtain the right coverage or policy.
As tuition fees increase, you'll need a solid plan to secure your child's education. InLife shares 5 things to look for in an education insurance plan.
Mutual and stock insurers have their own strengths and disadvantages. InLife explains how the two differ and how this difference affects you as a policyholder.