The Best Early Retirement Planning Financial Tips
It’s not uncommon to come across working individuals in their late 20s planning to retire by their early 30s! this is due to several reasons, the stress of the corporate lifestyle considerably increasing with time is one while the urge to be your own boss is another!
The team at Incomet has always believed that everyone should some point in their lives not just dream, but experience the reality of being your own boss! Somehow this topic of early retirement is connected to what we do at Incomet as well, while providing our students with the best stock market course in India we not just teach them how to rule the stock market, but also how to be financially independent.
Step 1 of the Early Retirement Planning Journey is simple, and it’s just the decision to Form a Plan! As being unaware of the plan entirely can be extremely worrisome in the long term, you do not get a 2nd take at this, that’s just how life works.
The 4 Point Early Retirement Plan;
1. Being Debt Free:
Clearing debts while you are working is to clear the debts you have, in case you feel that the income you receive or the career graph you have predicted would NOT be enough to achieve this all then plan to have secondary income in any form. Joining our stock market entrepreneurship program could be the first of many. We can’t stress enough how important planning to be debt-free is, retiring early requires you to have cash reserves and stable income from smart investments you had made while you were still working, all of that gets tossed out of the window when you have huge debts on you and these debts can also make the decision of retiring early and impossible achievement for you.
2. Getting The Mortgage Paid Off:
This is an extension of the being debt-free tip, you simply have to own your own home in case you are planning to retire early. Paying rent post-retirement is not advisable even if you have sufficient income from sources like the stock market or alternative assets.
This is due to a simple fact, in the scenario of paying rent you are simply losing money while owning your home means you have an extremely valuable alternative asset in your name that would only become more valuable with time!
3. Reviewing The Investments:
At Incomet, when we teach our students and guide them towards great investments, we also guide them towards the analysis of the same! There can never be growth when you have no tools or plan to measure the same! Reviewing the investments you’ve made regularly ensures that you are never out of touch in terms of the projections you’ve mapped out.
4. Being Aware of Your Finances:
The mistake most people make is NOT tracking their expenses or income whatsoever! In case such oversight is being done then retirement planning is a far-fetched dream, for your to plan your retirement, you have to be fully aware of your present, and that exercise includes the activity of being fully aware of your financial life, how much you are earning and how much you are spending. This might sound like a task and quite really it is, but after a while, once you get used to it, maintaining this level of financial awareness is going to feel like a breeze.
Mentally Preparing Yourself: The amount of planning and the effort that goes into this planning is always immense, hence it’s important to not let the thought of retiring early negatively impact your mental well-being. Be sure to always follow the thumb rule of loving your work or at least try to find ways to fall in love with what you are doing, this basic rule always makes whatever you are doing a lot less tedious.
Retirement is the time when you enjoy your life, however, retiring without any planning or at a time when you are financially unstable can cause more harm than good. Be sure to follow these tips when you are planning to retire early and find more along your journey to a financially independent and relaced life!