Early Retirement: The 7-Step Checklist

Retirement is something that shouldn’t be ignored no matter how old you are. In fact, the younger you are when you begin preparing and saving for retirement, the better off you will be. There’s a lot of things to consider and if your goal is early retirement, it’s definitely time to get on the good foot. Journeytobillions has the early retirement checklist that could change your future.

1. Set a Date

Giving yourself a deadline is very useful. It doesn’t have to be set in stone, but having a target date to retire by helps give you something to shoot for. It creates a sense of urgency. Just keep in mind that time waits for no one and can fly past before you know it.

2. Work Less

Some workplaces have something called phased retirement. It allows employees to ease into retirement while still generating steady income. Alternatively, you could go part-time. This gives you the ability to have a foot in both worlds and have more time for yourself.

3. Create Passive Income

Passive income is integral to retirement and even more so with early retirement. Passive income can come from rental properties, online courses, dividend portfolios and plenty more. The beauty in passive income is in its set it and forget nature. You put forth the effort once and it continues to pay you after that.

4. Pay Off Debts

One of the last things you want to have to worry about is debt when you’re retired. Part of your plan needs to include paying off your current debts (and not creating avoidable new ones). Carrying unnecessary debt into retirement is a sure way to deplete your income and bring you back into the workforce.

5. Review Your Budget

Track your monthly cash flow now so that you can have an idea of what it needs to be later. You can play around with the numbers to see how and where to allocate your funds and to see how much you’ll need to have coming in each month. Be sure to account for increased healthcare and other things that will be a big part of your life, like travel or charity.

6. Relocate

Downsizing is a popular and helpful thing to do. You probably won’t need a five bedroom home when you’re retired, and you may not need one now. It’s a good idea to live in a home that saves you the most money.

7. Have a Plan B and C

A back up plan is always in order. Sometimes things don’t go according to plan or unforeseen circumstances present themselves. That’s when you’ll be grateful that you thought about alternatives. Have several backup plans. Don’t let your early retirement plans get derailed.

 

Quitting your job is an easy thing to do, but quitting and still sustaining your family and lifestyle requires a little more finesse. You’ll need to be committed to early retirement and disciplined enough to stick to your plan. Everything on this checklist may not be for you, but many of these suggestions can set you square on the path to a successful and happy retirement, no matter your age.

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