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7-Step Strategy Guide To Help You Retire At 45!

Written by Plastk Canadian Financial Education Leadership (CFEL) | Feb 24, 2023 2:00:00 PM

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Early retirement? That too at 45? How is that even possible?!

Yes… we understand, even thinking about it seems too far and simply unapproachable.

Not because retiring early at this age is not possible but because it takes different financial strategies, retirement planning, and a ton of creativity to enjoy soulful days.

So, where do you get all that from to make your dreams come true? By staying true to your goals and ambitions or everything that can help you achieve them,

We Got You!!!

Our 7-step strategy guide is here to make that happen for you! Literally! Don’t believe us? Let’s dive straight in to find answers!

1.  Sit With Your Goals

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Sit with your goals? Hunh? Well, not literally. :p

There’s this saying that goes something like,

“When you want to do something different from others, your actions should also be different from others and not the same.”

What we mean is you have to make yourself stand out to really shine on the sky of success. So, if you want to retire at 45, you are supposed to:

  • Set long-term goals,
  • Plan how you are going to achieve them,
  • While analyzing how you imagine your retirement period depending on those goals.

This is mainly important because retiring at 45 is definitely not under the banner of the traditional retirement age. Therefore, your perspective and strategies to pursue it should also be different.

So, ask yourself:

  • Why do you want to opt for early retirement?
  • Would you like to live a laid-back lifestyle or rather explore the amazing world around you?
  • What would you be pursuing after that?

These and a few more questions will definitely help you start with strong retirement foundations and plans.

2.  Step Out Of Your “Perfectionist” Mode

First of all, there’s no such thing as perfectionism or the right time to do something.

Therefore, when you want to enjoy your early retirement days, you would need to let go of your “perfectionist” mode and get into action.

This simply means, instead of

Simply

  • Pick one that helps you achieve your post-retirement fun
  • Adopt a “go and get” attitude
  • Opt for something as useful as a secured credit card to improve your credit score

Doing so and other things will save up a lot of time, which can be utilized in other productive tasks.

3.  Speed Up The Cash Inflow Process

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Speaking of stepping out of your perfectionist mode and opting for a “go-getter” behavior, there’s one important thing you need to realize.

That is, early retirement means you will need to put in the extra effort than others just to ensure things turn out as financially stable as possible.

By this, we simply mean that:

  • Start working on a profitable side hustle
  • Keep working on improving your money-making skills
  • Learn how to distribute your side hustle to ensure productivity and money go up side by side

This will ensure that:

Not only that but also how to enjoy your youthful days with financial freedom.

4.  Be Mindful Of Your Money Habits

Believe it or not, habits do play a major role in defining how successfully you have achieved your financial goals at 30, and so on.

Think for a moment,

How would you be able to save and invest when you are simply spending your hard-earned money on things like

  • Luxury traveling
  • Overspending
  • Binge shopping

And other moody big hauls. Therefore, whether you are earning less or more, make sure to always:

Above all, ensure to stick to these and other financially beneficial habits. When you are sane about what you do with your money, your finances will start working for you and not against you.

5.  Never Let Your Debt Pile Up

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Most people who have happily retired at the age of 45 have a secret recipe that everyone should follow!

And that is, they never let their debt pile up at the back of their head!

Never!

Therefore, when you also have the same goals and resolutions as those successful people, make sure to

This and other mindful decisions will assist your life in the following ways:

  • Help you make the right use of your credit card
  • Let you manage your card even when you are traveling

Yet, do not fall into the trap of endless bills and high-interest rates. You need to be mindful of every step you take and every move you make with your card. Otherwise, you’ll end up in unpaid bills and negative credit histories.

See: Is Negative Balance On Your Card A Bad Thing?

6.  Create Assets And Not Liabilities

There’s one thing most important to retire early, just like you need to realize the difference between your need and want to fix your money-related habits.

That is: Creating assets and not liabilities!

  • Liabilities will keep draining your finances, regardless how hard or how much money you are making.
  • On the other hand, your financial asset will help you design a system that contributes to your early retirement plans instead of the other way around.

Your assets will provide economic benefit to your personal and professional life. Moreover, it can also help build a secure financial future while aiding you in living your current life to fullest.

7.  Keep Yourself Updated About Latest Dynamics!

Since we are already talking about a goal that you will achieve in, let’s say, 2 or 3 decades, depending upon your age at the moment, keeping yourself updated shouldn’t be overlooked!

This is mainly because gone are the days when financial markets around Canada or America were too slow to make a sudden shift.

Instead,

  • Today’s world has become faster than ever
  • New advancements are pushing people to be dynamic in their approach
  • You can’t afford to stay behind on the trends

Similarly,

You also wouldn’t like to be pursuing a business idea or miss out on the importance of financial health due to a money-saving strategy that isn’t serving you anymore, right?

Of course! So, if you want to retire early at the age of 45, you need to make choices that will help you achieve that. You can’t be overspending or randomly plan your finances and then expect to have full savings and emergency funds.

Summing Up

Retiring at an early age can definitely feel like a lot of work. However, this is equally doable as long as you are heading in the right direction and not the other way.

Keeping in line with that, if you have got anything to suggest or add, do let us know!