Early retirement is what most people daydream about while working at their office desk. To most, retiring early seems out of reach but others are realizing that it is possible. When deciding you want financial freedom and to retire early there are many things you need to think about. Gaining financial freedom takes a lot of work but when you plan and budget right it is obtainable. Here are some things you need to think about when planning your early retirement.
Social Security Checks
Although when you retire you will receive social security and pensions, they may not pay as much as you need. Social security checks are based on your working income and the age when you begin claiming benefits. Therefore, you may not get the same amount as someone else and you have to be prepared for that. Expenses may increase and it is likely your social security checks will not be able to cover all of them.
When some people retire, they notice that they begin to feel down. This can be for many different reasons. Some people begin to get antsy without their job to keep them preoccupied. Others begin looking back at their life and get upset thinking about all of their regrets. If you are not at peace with your life when you retire it may cause doubt and disappointment. This is why it is important if you plan on retiring early that you decide your plan for when you retire. If you are the type that wants to just relax and do nothing that is fine. If you are someone who needs to be doing something try finding a hobby or interest you can get involved in when you retire.
Before you begin working to financial freedom and retirement you need to figure out your budget. In order to know how much you should be saving you need to know how much you plan on spending. Figure out your monthly and then year budget this will help you figure out how much you will most likely be spending once you retire. Add 10%-20% to this amount to give you wiggle room in case an emergency or unplanned expense comes up.
In life you are told to never settle and although for most things you shouldn’t, but when it comes to your spending, you should. When trying to save money it helps to decide what things are important to you and cut out what is not. Although there may be things you want to buy you have to settle on only getting things you need. This means cutting back on both small and big expenses. If you don’t plan on working at all once you retire you need to plan ahead and understand you may not be able to get everything you want anymore.
Although it is a lot of hard work, with well-planned budgeting and smart investments with the help of DCT Capital Fund financial freedom is not out of reach.