This is why you need to retire early.

Andres Paniagua
3 min readNov 4, 2020

Hey guys, what’s good? I hate to break it to you but we’re all getting older. At some point we all want to stop working. And unless you want to push that day well into your golden years, you probably want to start thinking about that now.

Many people never think about retirement but end up complaining about the situation they’re in when they get there. This happens for one of two…or I guess it can be both…reasons.

  1. They don’t want to think about getting older because they associate that with death. Or,
  2. They have no plans because:
  3. They don’t think they have the means to do so. Or,
  4. They believe other Social Security will be enough to support them and their family.

Like most life decisions, they need to be handled early so you have enough time to complete your goals. Understanding that retirement is something that will happen whether you like it or not (you will stop working because you will not be able to eventually), gives you a timeline to work with.

Here are some tips for starting your way down the retirement path:

  • Know how much you’ll spend.
  • Take some time and think about the type of retirement you want to have. This is the time to dream and think big. Do you want to travel? Start another business. Do you want to retire early or work a little longer because you like what you do? All this has a dollar amount. You also have to take into consideration all your expenses. Housing, insurance and other living expenses. Put a monthly price tag on your retirement. This will give you a number to shoot for when it comes to the monthly payouts of your retirement investments.
  • Find out your Social Security benefits
  • I know I said that I said you shouldn’t depend on Social Security but its a benefit you will receive so you have to consider it in your planning. The good thing about Social Security is that you can visit a website and calculate how much you’ll receive. You can use this number when you figure out your calculation above. These benefits are figured by annual income. Looking up this information might motivate you to do things to increase your income.
  • Contribute, contribute, contribute
  • If your employer has a retirement account- contribute. If you have your own IRA- contribute. If you don’t have a retirement account of any kind, start one and- contribute. You need a place to put your money that will accrue interest while you’re waiting to retire. Regular savings accounts do not acquire interest at a fast enough rate to get you where you want to be. Yes, they have risk, but you can do things to mitigate that risk. You also change your investment strategy the closer you get to retirement.
  • Downsize
  • The closer you get to retirement you’ll have to think about getting rid of things that cost you money. Do you need the biggest cable package, can you pay off or sell your house? One car instead of two. All things add up. The more you can cut that has nothing to do with your retirement dream, means you have more money to spend on what you really want to do.
  • Get and stay healthy
  • It does you no good to scrimp and save for many years, only to not be able to enjoy it because you’re sick and unhealthy. As we age, it takes a lot more work to stay (or get) in shape. The earlier that you adopt a healthy lifestyle, the easier it will be to maintain it as you age. Eat better, exercise more, reduce stress. All these things will help you enjoy your retirement for a long time.

There are many more ways to prepare for retirement. These are just the ones that I think are important. Whatever your plans are for retirement, start them early. It’s never too early. Even something like getting your will or trust in order will set you up for a happy retirement. In my experience while observing my family retire, not leaving it until the end is probably the most important tip I can give you.

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