Retire Young by Savings Enough Money Now

Working in the same job for a number of years inspires some individuals to aim for early retirements so they can enjoy their lives. An early retirement typically occurs at about 55 years of age instead of the traditional 65-year rule. However, some individuals retire when they reach their 30s or 40s. The key to an early retirement involves having a workable strategy.

Do Not Waste Money Foolishly

Numerous single individuals and married couples tend to throw away money carelessly. These folks may as well buy trash receptacles in which to deposit their earnings every week. People think they need all sorts of items and amenities, but the fact is that most people do not miss these luxuries once they eliminate them from their daily lives. Every person has the right to have a good time and enjoy the money he or she earns by eating in a restaurant, watching a movie in a theater or attending a baseball game in person.

Eliminate Cable Television, Cigarettes, Beer and Junk Food

An incredible amount of money goes into the hands of company CEOs who expect people to develop addictive needs for the services provided by their businesses. Some of the most common culprits include cable television, cigarettes, beer, soda, potato chips, pretzels and candy. With the exception of cable television, the other mentioned products do not serve any useful purposes in a person’s life. In fact, these habits are often detrimental to a person’s general well-being.

Alternatives to Cable Television

The relatively new option to view digital television stations without paying any fees makes it easy to eliminate cable television expenses. However, some individuals do not receive adequate reception for digital stations. Other less costly options include listening to the radio and reading books. The electric bill is not going to go up very much by opting to listen to talk shows or classical music on favorite radio stations. A library card at the local public library makes it possible for every person to borrow books, DVDs and CDs without paying any money.

Learn How to Save Money on a Regular Basis

Saving money is easy when a person develops the habit of depositing unneeded money in a savings account. Financial experts agree that people need to pay themselves first and then deposit any excess earnings in a reliable savings account. A wage earner first needs to pay the rent or mortgage, the electric bill, the gas bill and the telephone bill.

Saving Money is a Necessity 

After all the bills are paid, the person needs to set aside an amount of money needed for food and other necessities. A person can also keep a small amount of money used for entertainment purposes. The rest of the money goes into a savings account that pays interest. It is important to have a nest egg because the future is uncertain. Extra money comes in handy in case of an unforeseen medical emergency or other unexpected situation. Inflation necessitates maintaining a savings account.

Invest in Short-Term Money Market Funds or Short-Term Bond Funds

Investing in a short-term money market fund or bond fund is another way to put aside money that offers higher dividend rates. The downfall with investing in a mutual fund is that the principle can always lessen, but short-term bond investments do not typically fluctuate dramatically. The main thing is to save money and reinvest dividends. It is also helpful to invest in 401ks whenever an employer offers this option.

The little pleasures of life need to take place in order to prevent a life of extreme boredom. However, a reasonable budget can allow for pleasurable activities while it also invites the wage earner to refrain from wasting money. The person who is able to save money in an efficient manner has the opportunity to retire at a younger age without sacrificing an enjoyable lifestyle.

By-line

Jennifer Carrigan writes on behalf of Kanetix, where you can calculate your credit score to find out if you have been wasting your money foolishly.