Being able to retire early does not depend on how much money you earn—in fact, it depends on what you do with the money that can help you create wealth. Being able to live beyond comfortably in this economy is already tough to do, what more if you wish to retire early? Yes, retiring early is hard and is virtually impossible to do; however, some people can do it. And it is not because that they were rich in the first place, it is because of their discipline to save and to be frugal. So, if you wish to attain financial freedom just like they did, read on for the tips on how to save money for retirement listed below:
- Save more- This tip would obviously be the first one on the list. Why? Because it is impossible to build wealth if you do not save. Therefore, make sure that you have the discipline to set aside a certain amount of money every month. Once you get the hang of it, the next step is to increase the amount every six months or every year. Remember, inflation is inevitable and if you keep on saving the same amount for the past five years, you might not be able to keep up with the economy which might leave you with no sufficient savings at all.
- Join savings movements- There are movements which focus on early retirements. What these movements do is to combine the high rates of savings and a frugal lifestyle. They are able to save as much as 75% of their income instead of just the traditional 10% to 15% allowing them to attain financial freedom much faster.
- Save or at least half of your quarterly and annual bonuses- When people receive their bonuses or tax refunds, they usually feel entitled to spend them. However, the wise thing to do is to plan on saving or investing them. Yes, you might need to spend the money on someplace else but you should also save at least half of them. For example, if you invest your $1000 annual bonus every year at 6% interest over 30 years, you would have about $84000 to be used for your retirement. And if there is a need for…