6 steps for an early retirement


The value of being able to skip the 9-5 workday has been emphasised by living through a global pandemic. Early retirement does not imply that you will never work again. Rather, it entails having more options and possibilities.

Your super is accessible starting at the age of 60. But what if you plan on retiring before then? Here’s a list of advice for you to take right now to put yourself in a position to retire sooner.


Know Your Living Expenses

What amount of money do you require to cover your annual living expenses? You won't be able to leave your present job without a careful examination of your cost of living.

Ask yourself how much money you need per year. If your goal is to generate $30,000 per year from your investments, you’ll need approximately $750,000.

You can reorganize your numbers once you've determined how much you plan on making on a yearly basis. You'll be able to retire sooner if you cut your spending and live comfortably on far less money.


Try saving more  

After outlining how much money you need to earn to cover your living expenses, you can now set targets for saving more money. To do so, compare your current spending to your current income.

Is there a monthly surplus? If not, how can you save more money for retirement by cutting back on certain expenses? This is called cash flow management, and it can help you retire early.


Call a Create and Protect Financial Planning expert for guidance on cash flow management.


Capitalize on your future

Putting the extra cash, you earn in your bank account isn't going to help you considerably to retire early.  You should instead put more effort into making your money work for you.

When it comes to investing, there are several questions to consider:

When are you planning on retiring?

Is it possible to benefit from debt?

What strategies will you use to diversify your assets?

Are you willing to take a chance on a riskier investment if it means retiring later if the market tanks?

Make the most out of your surplus money by putting it to work for you and capitalizing on your future.


Reach out to a Create and Protect Financial adviser to make sure you select the most appropriate investments according to your objectives.


Try downsizing your home

Some people downsize their homes or relocate to a less expensive area to retire early. You would feel immediate financial independence if you could pay off your mortgage by downsizing your living space.

Most people's budgets frequently emphasize mortgage and rent payments. Without having to worry about mortgage or rent to pay, you can put your money to work by paying off other bills or investing in your future.


Elevate your Super 

A strong retirement fund provides security for your future, even if you can't access it right away. Think of extra contributions to your super as costs to your future self. You could sacrifice a bit more of your salary on a monthly basis, or you could contribute lump sums when you receive bonuses.


Grow your earnings

Increasing your income early on is another way to ensure an early retirement. You could have more money to invest and save for the future if you take on another job, work overtime, or switch to a more lucrative and profitable field.

Just make sure you don't waste any of your excess cash. When you make more money, it's tempting to spend more. You may be able to accelerate your retirement by being disciplined and keeping your expenditures in check.


Prepare for your early retirement

Retiring from your career does not imply that you are giving up on life. Early retirement may allow you to pursue interests you've only hoped for or dreamt about in the past.

Your financial advisor offers you additional advice on how to prepare for early retirement. Get in contact with us to set up a consultation. Create and Protect Financial Planning can help you design a strategy to achieve financial independence. The sooner you begin saving, the sooner you can begin enjoying a worry-free early retirement!


Disclaimer:The information included in all of our blog content is of general nature only. Any general advice included in this information has been prepared without taking into account your objectives, financial situation or needs.
Because of this, you should consider the appropriateness of the general advice to your objectives, financial situation and needs and obtain professional advice before acting on any general advice that we have provided to you.


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