- If you want to retire in the next 10 years, reduce your expenses and increase your income.
- Paying off your debt can give you more money to save and invest, and free up your budget later.
- Growing your income with a raise or side raise could give you more money to save.
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If you want to retire in 10 years, it might be possible. But it will take work.
Getting your finances in order now can help you reach your goal later. While everyone has different budgets and different circumstances, it might be possible to comfortably retire sooner than you think. However, it can take more than 10 years, depending on where you are starting from.
Anytime you want to retire, whether it’s at the normal retirement age in your 60s or much earlier, these four suggestions can help you achieve that goal.
1. Reduce your living expenses
If you are able to reduce your living expenses, it could save you more. While this could mean moving from one house to another, it can also be as simple as cutting your expenses and reviewing your budget to see where you can cut.
Retiree and blogger A Purple Life (who is anonymous online) cut costs by moving from New York to Seattle. By retiring just five years after she started saving, this move has helped her move forward. “I cut my living expenses in half just by leaving Manhattan,” she told Insider.
By reducing her expenses, she was able to retire quickly. Doing something similar to reduce your expenses could also help you on your retirement journey.
2. Pay off any debt
If you can pay off your debts, your retirement goals will be doubly beneficial.
You will be able to save more money each month with less liability. Freeing up several hundred dollars each month means you’ll have more money to save and invest.
And, there is a long term benefit. Retiring without going into debt can help cut costs and stretch the money you’ve already saved. The combination can give you years of head start on your retirement journey.
3. Earn more income
Whether you plan to ask for a raise at work or start a sideline, earning more means saving more.
High school teacher Brian Weitzel found ways to earn more with a sideline on his journey to early retirement, Insider’s Tanza Loudenback reports. Starting a parallel photography business and investing in real estate helped increase her income enough to maximize six retirement accounts and save for early retirement in another investment account.
Earning more could help you increase your income and save more now, and create a side business that you can carry on after you quit work.
4. Cut down on your lifestyle and set a budget
Spending less means saving more, and that could be the key to retiring sooner than you expect.
Just paying attention to your spending can make a big difference. Avoiding the lifestyle drift or spending more when you earn more can make a significant difference. Plus, living below your means can help you save more and create a lifestyle now that will be sustainable in retirement later.
Budgeting can be a good place to start, and it will give you an idea of where to cut back. List all of your expenses and categorize things into essential and non-essential costs. Look at non-essential expenses and see if you are able to cut back in a specific area. Investing the difference could help you save more and get closer to your goal.
Liz Knueven is an Insider personal finance reporter specializing in retirement. She is also a certified personal finance educator.