There is more than one way to skin a cat. That’s a bit of a disturbing metaphor, but it’s true. It means there is more than one way to accomplish a goal. When it comes to retirement, we’ve been told our entire lives that there’s a way to do it. You work hard for 40 years and then you retire with your benefits. That might have worked well at one point, but as times have changed there are now more — and better — options available. CNBC’s Ryan Ermey reports on how to get into the right mindset to retire early.
Ask Yourself Why You Want to Retire Early
To retire early, it’s important to achieve financial independence as soon as possible. Seniors with more savings and income streams have an easier time with this than a younger person just starting out. It helps to ask why you want to retire early. While the answer is obviously because we want to, it helps steer our attention and steal our focus if we get specific.
For example, you want to travel, or spend more time with your family, or pursue your passion. Those kinds of questions spark a fire underneath us that gets to where we want to be faster, helping us understand the risks, rewards, sacrifices, and payoffs that working towards our goals will give us.
Knowing the “Why” will both clarify our goals and steer our decisions. For seniors, that might come down to deciding to take benefits earlier than anticipated. Or it could mean redirecting your retirement plan towards a new direction entirely. Those choices and the actions that follow might make your retirement better than you could have ever dreamed. It’s up to you.
For more retirement information, tips, and tricks, follow the Council for Retirement Security.