Cutting and Prioritizing Costs - Tips for Retiring

EarlyBy Ashu Bhandari

Introduction

Ashu Bhandari retired at age 45, five years later than he had hoped. While many people end up working into their late 60’s, former entrepreneur and St. Thomas, Virgin Islands, resident Ashu Bhandari employed strategic financial planning techniques to achieve an early retirement.

Preparing for Retirement

There are many ways people can prepare for an early retirement, including cutting housing costs and determining daily priorities. To cut housing costs, consider downsizing or renting out extra space. Eliminating extra space is a long-term savings tactic that can help lower maintenance and utility expenses. In addition, renting out extra space in an existing home can generate additional cash flow for investing or paying off a mortgage.

Conclusion

By prioritizing everyday expenditures, people can reduce wasteful spending and redirect excess income to investments or savings accounts. Examples of prioritized living include driving a used car, using a list when grocery shopping, and staying at hostels while travelling. To make saving money easier, find a balance between daily happiness and extended goals. For instance, indulge in foreign travel for an anniversary, but go somewhere with a favorable exchange rate.