Retiring early is every working person’s dream. Many workers make jokes about that desire not being possible. Others feel they will never make it happen because of their income, the amount of debt accumulated, or high living expenses. The truth is that, with conservative spending, aggressive saving, and smart investing, early retirement is enjoyed by average working people.

Start Right Now

People who have retired early began planning to achieve that goal earlier than most. Putting off preparing for retirement means it will take longer to ensure expenses will be met when the time comes. The biggest mistake people make is thinking they have plenty of time to plan and save money. Start planning now with the help of a wealth management advisor.

It is never too soon to begin taking control of spending and saving as much money as possible. This lesson is critical to build enough wealth to not only retire early but retire comfortably. Ways to cut costs include making more meals at home, driving used vehicles rather than new ones, and drastically cutting vacation budgets. Save money easily by having a portion of every paycheck deposited in a retirement account.

Pay Off Debt

The wisest strategy here is to stay out of debt altogether, which is not always realistic when transportation, higher education, or a house is needed. If debt is an issue, concentrate of paying off things that accrue the highest interest. Credit cards, student loans, and mortgages all require more than minimum payment amounts to be paid off quickly. This practice will save money on interest and allow people to put more resources toward retirement.

Invest Wisely

The key to wise investing is striking a balance of risks. A combination of low, medium, and high-risk investments is more likely to produce steady returns over time. Managing investments is a full-time job, so this is another area where an experienced advisor will be helpful. Successful investments may also be used to augment income after you retire.

Research Locations for Retirement

The cost of living during retirement dictates how much money is left for entertainment, adventures, or travel. Focus on information regarding health care, housing, transportation, and food. A plan that includes retiring to a new home will need to include having that home paid for before or shortly after the targeted retirement date. It is easier to get a second mortgage the younger you are at the time of the loan application as well, so waiting until you have the deed to the current house could backfire.

Living abroad is often cheaper than retiring in the U.S., depending on the chosen location. Many countries in Central and South America, along with several Asian countries, offer the opportunity for people to retire in relative luxury. Exchange rates on currency, lower costs for houses, and economical transportation options make dollars go far.

Retiring early is an achievable goal for those who are serious about making the choices that make solid financial sense. It does not take a huge income or independent wealth to spend less years working and more years enjoying life. Begin saving money and stop wasteful spending habits now. Seek the help of a financial professional to learn trade secrets and lessons from people who have done it.