Many people dream of early retirement, but only a few achieve it. If you have the same dream or you're struggling to save money, we have some good news for you.
After looking at what early retirees did and their advice, we've compiled a list of five tips to help you save money regardless of your financial situation right now.
It's Not About How Much You Earn
Many of us waste time waiting to get the "right" job or earn a lot of money to start saving for retirement. But early retirees warn that it can be a costly mistake.
When people say they're waiting for the right time, they usually mean they want to earn more and spend more money. And that will not help you achieve financial goals.
For example, many Americans are earning $50,000 a year but have no savings. So if you want to succeed, change your mindset.
Focus on how much you're saving rather than what you're making. Strive to live below your means and you will enjoy financial freedom sooner than you imagine.
Work Hard To Achieve Your First Small Nest Egg
It's often said that a journey of a thousand miles starts with one step. So instead of focusing on big projects start small, even when thinking about retirement.
Financial experts say that people who focus on small goals are more likely to achieve long term goals because they feel motivated. As such, do everything to save your first $5,000, or $10,000. It will propel you towards your long term goals.
Be Prepared To Make Uncomfortable Decisions
We live in a connected world. Many people spend a lot of time on social media and the internet is full of information on how to live well and large.
At the click of a button, you see your friends and colleagues driving expensive cars and going on lavish vacations. And many are tempted to live large just to keep up with the Joneses.
If you live this way, you will not achieve your financial goals for retirement. Early say they made uncomfortable decisions. They did not let family and friends influence how and where they spend money. These are uncomfortable choices that you have to make to succeed, so brace yourself.
Make Your Retirement Savings Hard To Reach
Savings that are easy to reach provide an easy solution for life challenges. And that's a risky thing.
Your car breaks down and you will use your savings you repair it. You get laid off and you will most likely use the money to get through until you find another job.
The rule of thumb is simple: when saving towards something, don't raid it. Don't use any amount to fund your lifestyle changes. Just let your savings grow until you achieve your goals.
Therefore, it is wise to put your savings in specific accounts that are hard to reach. Apart from protecting your money, hard-to-reach savings also reinforce and nurture good financial habits.
Don't Procrastinate for Retirement- Start Now
The amount of time your savings grow is an important factor that you shouldn't ignore. If you want to buy your first home in the next five years, start saving now.
Many people procrastinate because they assume they have enough time. In reality, they're uncomfortable with lifestyle changes. Don't join the list. Set your goals, open separate accounts, cut your spending, automate your savings, and see your money grow.
As you can see, saving money for retirement is not easy. And no one was born a financial genius. The longer you wait before you start, the harder your journey to financial freedom. We hope these tips from early retirees help you get started today.