Adopt These Money Habits If You Want to Retire Early

While the average retirement age is 62, you don’t have to stay in the workforce that long. If you can stash away enough money, you may be able to retire early. Here are some money habits that will help you quit working sooner.

Make saving a priority. Instead of saving after you pay your bills, put money in savings first. Max out your employer’s retirement plan, especially if there’s a matching program. Save outside of your 401(k) also, preferably in an account that earns interest.

Start early. The longer you wait to start saving up for retirement, the harder it will be to save up enough money to retire early. For example, if you start saving in your 30s or 40s, you’ll have to set aside more money each month than if you’d started saving in your 20s.

Eliminate extra spending. Cutting out extra spending will create more space in your budget to save money. Monitor your expenses to see where you’re spending money unnecessarily and work to eliminate spending you don’t need.

Make more money. Increasing your income also leaves you with more money to put toward savings. You may be able to make money from your current job by asking for a raise or promotion. Or, consider taking on a second job, starting a side business, or making money from a hobby. 

Don’t take on debt. Debt takes you in the opposite direction of your early retirement goal. Having debt decreases your net worth, leaves you with an extra bill, and can cost hundreds or thousands of dollars in interest. If you’re already in debt, work toward paying it off so you can put more effort into saving up for early retirement.

Ask a professional. You may not be able to reach your goals alone. Look for a licensed and experienced financial professional who can assess your goals and finances and suggest a plan that will help you reach your goals.

Even if you’re not working toward an early retirement, these are solid money habits that will serve you well no matter what your financial goals.