If you dream of early retirement so that you can live comfortably, go on vacation when the mood strikes, and spend more and more time with your loved ones without stress, I admire your courage and creativity. If these traits weren’t present, you wouldn’t be reading “Early Retirement for Dummies”. Without insightful guidance, unlimited encouragement, and just a little bit of courage, you could never achieve the life you desire to live.
I myself also took early retirement to fulfill those desires that I discussed above, so I can understand what you are feeling now. But early retirement is not for all. Some who retire early are proud of their decision, while others struggle and face challenges. In this article, “Early Retirement for Dummies”, I will share some tips for early retirement from my personal experience.
But before I dig in on the tips for retiring early, I want to let you know what early retirement means, who it is for, or who it is not for.
What does Early Retirement mean?
When a person stops working before the normal statutory retirement age, they are said to be taking early retirement.
It is generally understood that early retirement means retiring before the age of 65, at which point you are eligible for Medicare. Currently, the average retiring age for men is 64, while the average retiring age for women is 62.
Depending on your circumstances, you may be forced to retire early from your job at a certain age, opt for retiring early, or be laid off. In any case, there can be an element of excitement and anticipation when retiring before the traditional age of 65.
Recently very prominent bloggers on this very topic are retiring much earlier than their sixties: they retire in their forties and even thirties. Some keep blogging and doing other things while “retired”, but this is something for the “retirement police” (retirement police are people that criticize bloggers that make money from their blog while claiming they have retired early… oh well, a topic for a different post.)
Who is Retiring Early for?
Considering the question of who should take early retirement, I like to think it is for those who rationally plan for it before they do so. If you want to retire early, you must think, plan your life and work accordingly to survive.
All that planning should include the financial part that will make retirement possible: cutting costs, saving, investing, call it quits.
But the planning should also include all that will make retirement work: a plan for a new life of fulfillment, traveling, hobbies, leisure, and blogging for money (haha).
Who is Early Retirement NOT for?
Early retirement is not for those people who do not make plans for it. For both parts above.
Suppose you want to enjoy skydiving, for that you become well-prepared so that you enjoy that without harming your life. And you really enjoy that fantastic adventure too!
But think if you go to a high place and simply jump from that place without taking safety measures. What will happen? Certainly, you will fall and may have injured yourself, or even death may occur, Right? Likewise, it becomes hard and challenging to survive when you retire early without any plan.
Let my “Early Retirement for Dummies” article now move towards some tips for retiring early from my personal experience.
Early Retirement for Dummies – tips
Define your retirement:
It is not too early to start thinking about what you would like to do during retirement. Is there anything you would like to do part-time? Play with your children/nephews/grandchildren more? Do charity work? Take some time to figure out what “your thing” is, as now is the time to live your life according to your own rules.
I myself work part-time doing something I really enjoy. I not only enjoy it, but I earn money with it, and when I get an appreciation for my work, it calms my soul too!
Make a financial plan:
There is no better time to start a financial plan on your own or to work with a financial planner if you do not have one already. Prepare a retirement plan now if you do not already have one.
I myself made a financial plan for my early retirement so that I may not face any financial problems.
The best time to start planning was years ago… the second best time is today.
Communicate with your spouse:
Take the time to discuss your options and ideas with your spouse. When you define retirement and the next phase of your life, be sure you both are on the same page. Take the journey together!
Final thoughts
In some cases, pursuing your dream, like retiring early, can be challenging, and if you do not plan for it, it will become a nightmare. But if you plan for it, it will become a sweet reality of a charming dream! So be prepared if you dream of early retirement.
Read many other posts on Early Retirement and the very related “Financial Independence”, tagged as FIRE.
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