by Lyndon W

Created on: August 10, 2010

Retiring early is the dream of many, yet accomplished only by a few. Part of the reason is that few have the foresight and knowledge to plan ahead adequately. Building a retirement nest egg is just like constructing a building, and once the foundations are up and going, the rest of the work can be run like clockwork without much be of a hassle. First things first: Plan the age that you intend to retire. Plan how much you would need to retire. These two factors alone should prove to be a headache for most people.

Say for a person that retires at 65. There is a good chance of which he can live for at least about 15 – 20 more years, and it can be imagined that a lot of money is needed to survive: about 55% – 90% of your gross income might be needed to continue maintaining the lifestyle that you are maintaining. It might be clearer now to work backwards to see how much more is needed if one wishes to retire earlier than that, at 50 years old etc.

It is never too early to start planning. In fact for a early retirement, time is of crux. There are several factors that one can work on:-

Consider a second look at your current employment. The current age is a competitive one where employers are always on the lookout for faster, better and cheaper labor. When was the last time you upgraded your skills? Employers are very receptive of workers who are continuously upgrading and improving themselves, thus translating to additional value at work. Continuous honing of your skills also keep you up to date with current market demand and conditions. Depending on the economic conditions, and considering your career progression in your current employment, jumping ship to another company that has more prospects may not be that sour of an idea as well.

Part-time employment after work. Income from a single source of employment is fixed. To retire early, it is an economic cost for you now to consider sacrificing leisure time now for later. When you are young and still energetic, what is stopping you from seeking additional work to supplement that fortune basket? Professional in many careers can take on additional related work with experience, for examples, engineer can provide consultancy outside, lecturer can give group tuition to kid, etc. The possibilities are endless. However, do check with your current company if moonlighting or working outside your office hours is allowed.

Savings strategy for a lifetime. A penny saved is a penny earned. Many people make the mistake

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