Dreaming of an early retirement? 10 top tips to make it a reality.

The Brisbane Times reports that more Australians than ever before intend to work beyond 70, as Generation X-ers and Baby Boomers fear they lack the financial security needed to retire any sooner.

23% will not retire before turning 70

An analysis of Australian Bureau of Statistics data shows the number of over-45s who say they will not retire before turning 70 has dramatically increased, from 8 per cent to 23 per cent in a decade. AMP suggest that some Aussies are retiring earlier, with 25% of men retiring before age 55 and 50% retiring between 55 to 64 years. For women, the figures are higher, with 55% stopping work before they reach 55 and 36% retiring between the ages of 55 and 64 years. AMP suggest that one in three people between the ages of 18 to 64 years still think retirement is too far way to plan for.

Are you like me and dreaming about early retirement? If so here are my 10 top tips to make it a reality.

  1. Save 20% of your salary every year. This is a non-negotiable for me.
  2. Have a clear plan and goal of how much money you need and how much money you need to save.
  3. Set-up and stick to a budget. 60% of us can’t afford to pay our credit cards debts and 41% of us borrow from friends, family and loans each and every month to survive until pay day. Everyone’s circumstances and financial obligations are different but I’ve found that setting up a monthly budget helped me save money.
  4. Keep a spending diary. For the next 7 days keep a spending diary. Write down information about every single item that you buy and the price to track your discretionary spending.
  5. Live modestly. To spend less money and save more money live modestly. Do the simple things like mow your own lawn, wash your own car, iron your own shirts.
  6. Live less wastefully – Australians toss $8 billion worth of edible food every year. Apparently that’s 1 in every 5 bags of food shopping that we buy. The average household throws $1,036 of food in the bin every year. I hate food waste. I make soups from spare veg and compote from fruit. My freezer is stuffed full of pureed fruit and soup for lunches and quick dinners.
  7. Pay off credit card debts – 60% of us can’t afford to pay our credit cards debts and 41% of us borrow from friends, family and loans each and every month to survive until pay day. Paying off credit card debts is essential… better still pay the cards off in full and cut the cards in half!
  8. Manage your mortgage debt – The number of people over the age of 65 who are still paying off a mortgage has increased by 54% in recent years.. For me it’s all about paying off the mortgage ASAP!
  9. This is critical so I’m saying it again… Save 20% of your salary every year.
  10. Be Underspent not Overspent. I didn’t buy anything new or 2nd hand during 2014 and saved 38% of my take-home salary. I changed my spending and transformed my savings without dramatically changing my life. I’m  the Author of Underspent – How I broke my shopping addiction & buying habit without dramatically changing my life and I help men and women change their spending to transform their savings.

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BUY THE BOOK. Buy the 85 page BOOK Underspent in e-book or Kindle formats. Price $2.99 or £1.92

I’ve intentionally made it inexpensive, so that even the people with the smallest budgets can afford to buy it.

Amazon http://amzn.to/1E1ifp0 Barnes & Noblehttp://bit.ly/1A1NbKPKobo http://bit.ly/1bR9uHF Goodreads http://bit.ly/1KLRPNaCopia http://bit.ly/1RHaMpL  iTunes http://apple.co/1V6OXE5

I’m Rachel Smith. I didn’t buy anything new or 2nd hand during 2014 and saved 38% of my take-home salary. I changed my spending and transformed my savings without dramatically changing my life. I’m  the Author of Underspent – How I broke my shopping addiction & buying habit without dramatically changing my life and I help men and women change their spending to transform their savings.

Underspent: Changing Spending, Transforming Savings.