Retirement Planning And Financial Freedom

If I tell you that you can retire by the age of 40, what will be your reaction?

That sounds too good to be true!

Not anymore…

Early retirement is achievable if we start working on it from the beginning. It’s never too early to start planning for it and the earlier you start right after college or university the earlier you can retire.

Not only does it allow us to enjoy life as we wish to, rather early retirement planning is also one of the critical steps to achieve financial freedom. It implies a lot of work and diverse aspects to be considered.

This article deals with the basics of early retirement planning in some simple steps. If you don’t want to struggle with your finances till old age, read on and discover the formula to successful financial freedom.

1. Set your goals
First of all, you need to know what kind of lifestyle you want for retirement i.e. your goal. Write your needs on paper and rank them as either absolutely necessary, important or least important.

2. Decide the future financial target
Based on the desired retirement lifestyle, project the required expenditure on paper. This helps in making an accurate estimate of your financial growth and objectives.

3. Conduct financial inventory
Assess your current financial situation by doing an inventory count of what you have today. A financial inventory is simply a list of what you have and where you have it. This includes your assets, liabilities, net worth, income, expenses and net income or savings.

4. Evaluate progress
Once you have made estimates for all the above figures and started implementing the plan, its time to map out your actions and keep track of your progress. You can take help from a financial planner for this.