Imagine sitting on the veranda of your beach house, and sipping a refreshing glass of orange juice in the mid-morning sun. You have just woken up, of course, even though its close to 10 am because you are retired. You retired at 50, or 40, or even 35 all because you made the right decisions with your finance during your working life, choices that don’t include the mistakes listed below.
A major mistake that you can make if you want early retirement is to not save for the future. After all, you can’t retire until you have a nest egg that will support your lifestyle and saving money is a vital part of this.
Of course, where possible it’s always better to pay off debts before you get around to squirreling money away, so you will need to look at your financial plan and allow for this as well. Then you can start to create a savings fund that can be held on to or invested in growing your money even more.
Speaking of investing it’s easy to see what my perspective is on this because this whole is dedicated to investing for early retirement in one specific area, Property. Why bricks and mortar over anything else? Well, it’s because even if the bottom falls out of the market you will be left with a physical asset, one that you can live in, rent out, or convert, and hopefully still make money on for your early retirement fund.
Not claim what is yours.
Next, if you are planning on an early retirement you cannot afford not to claim money back that is yours. What this means is that if you have had an accident, then you need to speak to a personal injury lawyer and see if you have a case. The same goes for unfair dismissal or a breach of contract with your property deals.
It even applies to getting money back from business and personal acquaintances that you lent in good faith. After all, you are not a charity, and that money could be working a lot harder for you if you invest it, so claim back what is yours as early as possible.
Not pay off your debts.
Debts aren’t bad in and of themselves and when you are earning you can pay off what you owe each month without too much of a problem. However when it comes to early retirement debt is something that you don’t want.
After all, no matter how successful you have been you will be living on a limited income, and debt is something that will drain this. It is also something that will eat into your monthly allowance and can stop you living the life that you have planned.
With that in mind, it’s vital that you pay off all, or as much of your debts as possible before you take early retirement. Otherwise, you could be making a grave mistake that means putting your retirement back many years.