We all want to retire by the age of 50 or earlier but you do not know where to start with it so here are some helpful tips you should consider for it.
Savings
This one goes without saying which is why it is at the top, to get it out the way. Saving is very important throughout your whole life so make sure you do this early on. A good way to do this is to try and save 10% of your annual salary every year or even 5%.
If you have a £20,000 salary and you save 10% of this you save a total of £2,000. Do that for ten years and you will save a very nice £20,000. But, if you put that money where it gets great interest rates then that will add up over time. Not to mention your salary will go up as well due to progression or bonuses.
Have multiple incomes
Having one job that pays a great wage to you every week/month is great but have a little bit of extra come in is even better. They do not have to be related to each other, they can be completely unrelated or they can be linked someway or another.
For example, you could be a plumber contracted to multiple businesses and work on-site. But, for an extra 5-10 hours, you could also help manage someone’s finances or work in a bakery/ bar. It really just depends on what skills you have yourself.
Pensions
It is a great way to start saving for you to retire early and putting money away for it. Setting up a pension is definitely something that you should consider for whoever you are working with. This is an easy and simple way to prepare yourself for retirement.
Investments
Investments are one of the best ways to make money over time that you can really profit from. This either be through stocks and watch them go up over time or you could invest in real estate. Remember to come to an agreement with the tenant through a schedules of condition which helps acknowledge the current state of the property.
Becoming a landlord is something that you should consider and if you don’t know a lot about lease reviews then do not worry. Many people are professionals in this so looking at them for a bit of assistance is certainly something you should consider as you will need all the help you can get.
Last but not least, bills
Keep in mind that these build up over time so it is very important to pay them off on time. Make sure that if you have borrowed money from the bank or private companies then pay them off straight away as well as these increase due to interest rates.
In conclusion
Five simple and easy tips to help you get an early retirement but remember. The early you start preparing for retirement, the earlier you can retire so start sooner rather than later.