It’s never too early or late to start planning your early retirement into a world of the financially secure and wealthy. In fact, the sooner you start, the better prepared you’ll be.
Research has shown that for some 60% of retirees, the timing of their retirement was unexpected. The Employee Benefits Research Institute reports that about half of all workers retire sooner than expected due to health issues, the need to care for a family member, elimination of their job, or the fact that they don’t have the types of skills needed by their employer.
You need to be prepared for the real possibility that retirement will come sooner than you had planned or expected. Whatever the reason, the best way to deal with an unexpected early retirement is by being as prepared as possible.
Believe it or not, building wealth for a secure, early retirement is actually very simple…
… in theory.
The equation for financial success is a function of just three easy-to-understand principles:
Unfortunately, few people succeed in building wealth because it has little to do with understanding simple principles and everything to do with taking effective action.
The challenge isn’t in knowledge, but in translating that knowledge into meaningful results.
Why? Building wealth requires you overcome the following two hurdles:
You probably already know the three principles for compounding and building wealth also known as the wealth building formula for most self made millionaires . Most people do; yet, few people actually live according to them. These are:
To know and not act upon what you know is to not know at all.
This is critical. Most people fail to succeed financially because the rules are easy to understand but surprisingly hard to live by. Living them is the key… and also the problem.
The days of getting a job for life with a secure pension are long gone. Nowadays, you’ll have to rely much more on your own initiative to create pension arrangements, especially if you’re planning on early retirement.
When you’re young, it can be difficult to appreciate the importance of planning now, but the earlier you start, the better your standard of living when you do eventually retire. Anytime you get a financial windfall, you need to make the most of it—see what financial experts would do with extra cash.
James Barnash (SGL Financial), former president and chairman for the Financial Planning Association, feels millennials are in a very strong position to cope with the uncertainties around financial planning.
“Millennials look at the world and life differently,” he says. “They don’t have great dependence on what the government will provide down the road, so they know they’re going to need to fend for themselves. And they’ll be very creative.”
His advice for people starting their careers is the same as it would be for older generations, but the advantage with them starting now is that they have plenty of time to benefit from their early efforts.
Here are twelve actions you should start now if you want to retire early and financially free. But don’t judge them by whether they “rock your boat”: with originality and genius.
Action Step 1.... Keep A written Work Plan
Action Step 2...... Accept A Change or Adjustment To Your Lifestyle
Action Step 3.... Equip Your Self With Skills In Financial Literacy
Action Step 4...Don't Procrastinate Start Investing for retirement now
Action Step 5.. Make Your Money Work For You Through Passive Income
Action Step 6.. Protect Your Family and Property with Life Insurance Cover
Return from early retirement to retirement plan