What you should do if you want to retire early

At Robert Carlton we have a deep understanding of finances. Our experts can help people to achieve their goals. This is why we are the financial advisors Middlesbrough often depends on for their needs.

financial advisors MiddlesbroughThe thought of retiring when you are 50 or even 40 can sound like a fantasy. After all, the cost of living is increasing and there are other factors like inflation that eat away at your earnings. Despite this, there is a growing movement called FIRE (Financial Independence Retire Early). This involves a method of frugal living which many people are adopting so that they can aim to retire early.

How you can do it

People saving for retirement often find it hard to set limits so that they can experience benefits in the future. This is especially hard when you don’t know if your savings will be enough. However, with a little effort, it is achievable.

Shop around

When you save money on things like transport, bills, and other outgoings, you can grow your retirement pot quickly. It is often incredibly easy to find better deals on things such as energy and your phone. You should also look at subscriptions for things like magazines and streaming services and ask yourself, do you need it?

Utilise saving opportunities

If you hold a Lifetime ISA, you can save up to £4,000 a year and the government will add an annual bonus of 25% up to a maximum of £1,000. While you can’t contribute to a Lifetime ISA or receive the bonus once you turn 50, the account will stay open. This way you can continue to accumulate interest or investment returns.

Keep your spending in-house

Even small savings add up and help grow your retirement pot. In fact it is wise to start out small. Look at things like buying coffee from a shop everyday and eating out for your lunch. Switching to instant coffee in the office and having homemade meals can make a huge difference. Think of it this way, if you stop buying a £2.50 coffee everyday and you work 260 days a year, that is a saving of £650.

Seeking expert support

You need to know what your retirement goals are so that you can plan how much to save and invest. If you want to get serious about your finances, you should call on the financial advisors Middlesbrough clients trust. We can help you determine the best savings plan to allow you to achieve your goals.