With discipline, budgeting and meticulous planning, retiring at age 60 with 500K saved is possible! Follow our how-to guide for early retirement below.
How To Retire At 60 With 500K
While it is certainly possible to retire with 500K, the process will require extreme discipline. It’s common belief that $1-$2 million is needed for a happy and healthy retirement. With two individuals receiving pension or social security, though, retirement with less money can still work.
Follow this simple step-by-step guide below toward retiring by 60 with 500K in the bank.
Step 1. Live On A Budget
Is it possible to keep enjoying your current lifestyle while planning and saving for the future at the same time? Yes it is, so start by putting your housing, utilities, healthcare and transportation costs on a strict budget. When coming up with a budget, the financial experts suggest reviewing all your bills from the past year.
Figure out what costs you can cut back on, then determine exactly how you’ll take the needed steps. If retiring by age 60 is your desire, you cannot wait to start budgeting until your 40s. Start budgeting today!
Step 2. Save Early And Often
Saving as much as you can right now will undoubtedly make your transition to early retirement easier. Save as much as you can afford starting at a young age. There are several different ways to save nowadays, including a Roth or Traditional IRA.
Take advantage of any other savings opportunities that may come your way, such as an unexpected work bonus. Try to put your extra money toward your retirement fund. Ask your employer if they will fully match any retirement plan amount.
Step 3. It’s All About Location
The third step of the savings process is the most difficult step. Consider the idea of moving to a location with lower housing costs, if possible. Of course, this is a very tough ask of young professionals who may be raising a family. The good news is moving could apply to your retirement instead of your working days. Retiring with 500K will mean you most likely won’t live in the most luxurious area. Location is key when it comes to a healthy retirement.
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