Ways to Retire Early

Save Early

The key to an earlier retirement is starting to save at an early age. Set high savings goals for yourself as soon as possible, using various forms of retirement programs and investment options. Spending less money on a higher income frees up more money to save up for your retirement years. One option is to work overtime or take on a second job now so you can stop working all of your jobs sooner. Put all of the extra income toward your retirement fund.

In order to come up with more retirement money, scale back the way you live. Society encourages consumers to buy big houses, expensive cars and lots of toys whether or not it is in the budget. Instead of getting caught up in consumerism, find ways to cut back. Sell your big home for a less expensive place. You'll likely save on homeowners insurance and property taxes for even more money to put toward your retirement. If you live in an expensive area, consider moving somewhere cheaper. Become a one-car family or buy an affordable used car instead of carrying a payment on a more expensive model. Instead of tropical vacations, stay close to home and shorten your vacation to a long weekend. You don't have to cut out all of the enjoyable things in life, but you should find more affordable pleasures if you want to retire early.

Most companies offer some form of retirement package. Review the program your company offers to determine how much you are able to contribute. Put as much as possible toward your retirement account at work, especially if the company offers a matching contribution. Government and public sector jobs may offer a pension program that allows for an earlier retirement. In some cases, you are able to retire after a certain number of years of service rather than meeting a minimum age requirement to receive your pension.

Instead of planning to completely quit work, consider working a part-time job after you retire. You may have the option of leaving your main career earlier if you still generate some income. You free up more of your time but still make ends meet. This may be an option if you start your own company. Once it becomes profitable, you may be able to hire others to run the business while you check in part time to keep the company on course.