We are all familiar with working the 9 to 5 ground in order to manage our daily expenses. In fact, most of us work so hard throughout our lives that when retirement age comes ,we barely have enough time and health left to enjoy our retirement days with ease. Considering all of this, early retirement definitely starts to look appealing. But having a proper retirement plan in place early on is key.

Imagine retiring early only to realize you haven’t saved enough to even cover your basic expenses. If living for the moment is your goal, you can be sure you won’t have anything to your name when it’s time to fall back on your retirement savings.

To help you start off, here are a few important tips that can help you with your early retirement planning:

Calculating your monthly retirement expenses

Would you have enough to even manage your monthly expenses once you’re living in retirement? Before you start planning for anything else, you need to calculate what your monthly expense could be after retirement. Keep in mind, that you may not have any source of income. So, as much as you wish to, high-end expenses may not be such a good idea.

The best way to figure out your monthly expenses would be to calculate the bare essentials like your utilities, healthcare, food, clothing, and shelter. Once that is calculated, add to it additional expense such as your hobbies, recreational interests, etc. that you may plan for every month.

Determining how much you need to save to retire

Once you identify what your monthly retirement expense is , it is time to figure out how much you need to start saving. A way to calculate this is to ensure that you save up 20 or 30 times your expected annual expenses, and save cash that amounts to a year’s worth of expenses.

Altering your current expenses

We all know the best way to save more is by curbing your expenses. It is never too early to start saving. No matter what your age, you need to start reducing your expenses in order to save a substantial amount every month. This is espcially important if you’re planning to retire early!

Maxing out retirement accounts

Want to save up for your retirement while also saving tax? A 401(k) account or an Individual Retirement Account (IRA) are your best bets! And once you start saving, make sure you max out these accounts and don’t ever withdraw!

Consulting a financial advisor

If you are unfamiliar with financial strategies, chances are there is a lot that you don’t know, and this is where a financial advisor can step in to guide you. Remember that an early retirement means you have even less time to save. So, why not let someone else do the planning for you instead.

A financial advisor can not only plan out a good investment strategy for you but also help you manage your income after your retirement.

Retiring early is definitely a great option to explore.. All you need to successfully retire early is planning, discipline, and some helpful guidance from a financial advisor.