If you are starting to think about your own retirement, you are on the right path. You have taken the first step towards achieving that dream retirement. You may need to spend some time writing down your goals and/or expectations for retirement, but asking the questions is where everyone begins.
Yet, just thinking about retirement will not let you retire any time soon. In fact, the majority of Americans are retiring without any significant savings because they have failed to take action. Retirement planning is not just about dreaming. More importantly, it is about taking the necessary steps to make your dreams come true. Like I said, it takes action! There’s nothing passive about it.
My Retirement Plans
While I don’t have the same goals of sitting on a beach with a fancy drink in hand that many people have, I have begun to write down my goals for retirement (even at age 24). I know that by writing them down, they will be that much more achievable. I actually plan to retire early (by the age of 27), with the only catch being that I don’t see retirement as most see it. In fact, I see retirement as not having to work a 9-to-5 job and as having the financial security without income from my day job.
Some people are able to retire early with a large lump sum from a private or stakeholder pension. I know this isn’t possible for me (as I don’t have that kind of money and it would take decades to get it), so I have devised a different plan. I hope to build up enough income from blogging and real estate that I can quit my day job. The only job that I would have is to work part-time to maintain this income. Focusing on cash flow allows me to achieve financial security much sooner.
How I am Working to Achieve These Plans
My plans wouldn’t be great retirement plans if I were not working towards achieving my goals. Because my goals are very specific, it makes it even easier to work towards achieving them. I plan to quit my day job and retire within the next 3 years. Since I am focused on building up my cash flow, I am working on building up multiple blogs that will generate income. With the income that I earn from my blogs, I am putting that in a savings account that will go towards my down payment for my first rental property. With more assets, my cash flow will only increase and I will be able to hire out more of what is required to sustain that income. This will allow me to limit my working hours (while in retirement).
If you have specific plans for your retirement, you should be working towards achieving those goals. Whether that is generating income or saving X amount per month, you need to be doing something. If you aren’t working towards your retirement now or don’t have any plans to start soon, think how hard it will be to start later. Do yourself a favor and start making your goals a reality today.
What are you doing to achieve your retirement plans?