Early Retirement Planning Strategies

The first step of early retirement planning is to figure out how much money you'll need. If you're young, the rule of thumb is to have enough to provide 70%-90% of your current salary for the duration of your retirement.

However, if you're older and closer to the age at which you'd like to retire, you will need to estimate your needs more accurately. Make up a retirement budget to figure out exactly how much money you will need to get by.

In order to retire early, you will also need to start minimizing your expenses. You should devote the maximum amount of money possible to your retirement portfolio, which means you will need to reduce other expenses.

As you plan your early retirement, you should also consider whether you intend to work part time in another career. Early retirement is much more plausible if you have supplemental income from a part-time job during your retirement years.