Select Page

For many individuals, retirement, that ever-elusive point in time when substantial savings make it unnecessary to continue working, seems to be nothing more than a dream. Most of these people begin working with the intent of retiring, only to be bogged down and dissuaded by the unexpected happenings and expenses of life.

On the other hand, more and more people are dedicating themselves to retiring on a schedule, and through hard work, commitment, and unparalleled focus, they’re accomplishing their goals. The former group can learn from the latter, and everyone can benefit from seeing how so many individuals are successfully retiring in 20 years or less.

Here are the steps that made it possible for a number of financially savvy people to retire in 20 years.

Make a Budget

Budgeting is a must if you wish to develop long-term savings. As is made clear by numerous stories about celebrities and athletes who’ve gone broke, it’s easy to offset substantial earnings with substantial spending.

Accordingly, budgeting and limiting expenditures to the necessities and a reasonable amount of leisure-related costs is highly recommended for those who are eager to retire in two decades or less.

Open a High-Yield Savings Account

The sooner you opens a high-yield savings account, the sooner they can retire. It’s that simple.

Money becomes less valuable with each passing year, owing to inflation, or the process wherein currency loses some of its purchasing power as more currency is put into circulation. With this in mind, the dollar is worth about three cents less than it was last year.

High-yield savings accounts can offset inflation and help clients to establish savings. It’s not uncommon to receive somewhere in the ballpark of three-percent interest on a high-yield account. That’s almost enough to counteract inflation in its entirety, and for a family that puts away $500 per month, or less than half of the yearly minimum-wage salary, savings will quickly add up.

Wait to Draw Social-Security Benefits

Social Security benefits can be drawn at 62 years old, but by waiting until the full-retirement age (FRA) of 66 or 67, anyone can receive roughly 30 percent more per payment. In other words, planning ahead and waiting to tap into Social Security will allow retirees to give their savings a major boost.

There’s never been a better time than now to begin planning for retirement and to be sure, the key to retiring in 20 years is to strategize today. In this way, months and years will work to one’s advantage, and before long, meaningful financial progress will be made.