Early retirement is something many of us dream about. It doesn’t have to be a dream. We can turn that dream into a goal and we can achieve that goal by following the following steps! You CAN retire early!
1.Build a strong source of regular income
- This doesn’t have to be a 9-5 but that might be your best bet
- Regular means consistent over time
- Something you can rely on and use to budget
2. Save a large portion of that income
- Once you have locked down a “regular income” the key is to allot a large portion of that income into savings.
- Not spending all of your money is an important skill that will benefit you through out your life. Making smart buying decisions will make saving a breeze.
- An RRSP is a great way to save your money and most employers offer a matching program – be sure to take advantage of this opportunity.
3. Invest the savings in assets that will grow your investment
- Now that you’ve figured out how to budget and where to spend vs save, you’ll need to know what to do with those savings. Money sitting in the bank is not enough to help you get to that ultimate goal of retiring early. You want to make your money work for you.
- Choose a stable investment. For example if you choose real estate as investment and you are planning on renting out that space you’ve bought. You’ll want to make sure rental rates in that area are sufficient enough to not only cover the mortgage but exceed that payment so that you are making a profit on a monthly basis.