It’s important to understand that it doesn’t have to take winning the lottery to be able to retire a few years earlier. You might take one look at your monthly bills, debt status and current revenue and think to yourself that you’ll have to work forever. However, that isn’t always the case. Here are a couple of changes you can make in your life now that will make for an earlier retirement ahead.
1. List your goals for retirement
It is easier to prepare when you know what you are preparing for. What are your goals for your retirement? Your budget will look a little different then than it does now, figuring out how much you are hoping to be able to spend yearly post retirement is important in knowing how much you need to start saving now.
2. Live below your means
Adjusting your living expenses as life goes on is one way you can start planning for an earlier retirement. Sure, you might have needed that bigger house by the school when your kids were younger, but as the house starts getting a little bit less crowded look to see how you can downsize. Like any financial goal you have, cutting back where you can will help you reach your retirement quicker.
3. Pay off debt
When it comes to your debt, try to start with the ones that have the highest interest first. Additionally, you might be able to stop adding to your debt in certain areas. Credit card debt isn’t necessary, try using your rewards debit card where you can so you stop spending money you might not have. Once you have paid down your debt, you can contribute the money you were sending to your bills to your retirement plan to build your nest egg faster.
4. Start that side hustle
You might have thought about ten different business ideas, well now is the time to go for it. Owning your own business opens the door to retiring earlier if you do it right. That extra income that you make from your business can go straight to your retirement fund. Even if it’s not a completely new business, working extra hours in a part time job can also help.
5. Learn how to invest
Depending on how much money you are able to put aside to investing, there are different paths for you to take. The most important thing you can do is educate yourself before you make any decisions on what to do with your money. Investing isn’t always about money, investing in yourself and taking the time to focus on you can lead to an earlier retirement as well.
6. Bank with the best
The best way to stay on track with your retirement plan is sticking with a bank that will help you reach your goals. Radius offers 1.00% cash back, free ATM rebates, and a complete online and mobile banking experience that will be with you on the go.1 In order to prepare for the future, you need to start now, sign up and be a part of the Radius Advantage today.
1 The Debit Card Rewards Program (Cash Back Rewards) will provide 1.00% cash-back on all Qualified Purchases made by eligible Rewards Checking account holders if the account holder does any of the following; meet the requirements, is grandfathered in, or keeps an average balance of $2,500 or greater within the calendar month in their Rewards Checking Account, or receives total deposits of $2,500 or more in their Rewards Checking account via qualifying Direct Deposit within the month. Qualifying Direct Deposits are Automated Clearing House (ACH) credits, which may include payroll, pension or government payments (such as Social Security) by your employer, or an outside agency. Radius Bank may require documentation to verify that credits are Qualifying Direct Deposits. The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) to you that reflects the value of such reward. Please consult your tax adviser, as Radius Bank does not provide tax advice. Qualified Purchases include signature-based purchases made with a Radius Bank Debit Card tied to a Rewards Checking account enrolled in the Debit Card Rewards program. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and how the transaction is transmitted to Radius Bank at the time of processing. We reserve the right to determine if a transaction was a Qualified Purchase, and to establish additional types of Qualified Purchases that could be made available in a variety of ways. Any goods or services purchased with the Radius Bank Debit Card that are returned or otherwise credited to your Account are not qualified purchases. Unlawful purchases and purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Cheques, gift cards, Cryptocurrency, Casino Chips, Peer to Peer Payments, prepaid debit cards, account openings, loan payments, or other cash equivalents) made with your Radius Bank Debit Card are not Qualified Purchases. We may require you to provide documentation to validate that certain purchases are Qualified Purchases. Radius Bank reserves the right to modify or discontinue this program at any time. Your enrolled account must remain open, active, and in good standing to participate in the program, meaning: No NSF (non-sufficient funds) items during the preceding twelve calendar months in your checking account (regardless of the type of checking account). An eFunds check must show no negative history in the preceding twelve months and all monthly servicing fees must have been paid in full for the 12 preceding months. Radius Bank reserves the right to modify the description of “good standing” at any time. If you or the Bank closes your account for any reason before the end of the statement cycle, you will forfeit all rewards accrued through your linked Debit Card during that statement cycle.