If you’re looking for ways to retire early with little money in the UK, then you’re in the right place. Have a read, and you’ll be on your way to early retirement in no time.
The word retirement’s just screams old people, right? Wrong.
So many of us just plod along until we can get our pensions and then we’ll kick back. But why keep slogging away in a full-time job you might not even like when you could be enjoying an early retirement instead.
Retirement isn’t just gardening or playing golf. It could be the means to starting a new career, perusing new goals hobbies, or even travelling. The retirement world is your oyster.
What is Early Retirement?
Retiring is all about giving up work and living off whatever income you have. For a lot of people, this happens around the 65 mark because this is when you get your state pension.
To retire early you’d give up work before your pension’s due to start. But you’re going to need some money to be coming in from somewhere – but where you ask? Keep reading.
What You Can Do To Be Able Retire Early
1. Work out how much money you need to retire early in the UK
To work out the total money required to retire early, you’re going to have to dig deep. We’re talking your bills, your food and everyday essentials. Once you’ve got a total amount for each month, you’ll know what your lowest income must be. If you want to spend on luxuries like holidays or hobbies, add on what you’d need to pay for these.
2. Know where your money’s going and start saving it
Not to sound like a broken record, but budgeting is essential. When you see how much you spend on things you could go without, you’ll start finding ways to save money instead. But don’t forget you also need sufficient savings for emergencies.
3. Pay off your debts
Hands up if you’ve taken short term loans or payday loans to make ends meet? It happens, we know. But the money you’re using to pay off these debts could be put to better use.
Work to clear your debts as quickly as possible, it’ll be one less stress to worry about during retirement.
If you want to keep credit as a backup while you are planning for your retirement,, keep one credit card or a line of credit like Drafty. Then you know you can always cover emergencies if you’re stuck. At least with this type of borrowing you can pay it back fast and get back on track quickly.
4. Where can you get an income from?
Think outside the box. There are ways of earning money that don’t involve you having to work full time.
Sure, you could make money from a side hustle, but here are a few ideas to get you thinking about where that extra cash could come from.
- With all your work experience you must have some skills that you could offer to other people or businesses. By selling your services you could earn yourself a nice part-time income. People pay well for expert knowledge that they don’t have themselves.
- How big is your home, do you really need all those rooms? Downsizing is a great way to get your hands on some cash from the sale of your property. You could invest the money or use it to buy a second property. The rent you’ll get will be an easy income.
- If you don’t want to move, why not rent a room instead? Taking in a lodger can easily top up your income without you having to do much. If your home is in a good location for tourists, try letting out a room for overnight stays. That way you only offer it on dates that suit you.
5. Be financially independent
Financial independence is what you’re aiming for if you want to retire early. But to be financially independent you’ll need to have these things:
- No debts
- Little or no mortgage left to pay
- Enough income to live on without being overdrawn or having to use your credit card
- Savings – one pot for emergencies and another for when you want to spend on something special
If you’re shaking your head thinking this isn’t me right now, don’t forget that it could be. Early retirement is possible, it just takes some planning. You might have to make small changes to the way you live, but it’ll be worth it.
Just imagine no more early alarms. No more work-blues, but the freedom to try something new.
Want to find out how a Drafty line of credit can help to boost your cash flow? Check out our ‘About Us’ page.
Disclaimer: We are not providing financial advice, these are just tips for informational purposes.
