Life is short and you cannot spend its entirety working. You are enrolled in school as soon as you learn to comprehend and from then on it’s a never ending journey. Elementary school, middle school, high school then college. And when you finally get that degree that was going to change your life, you get a job because after all you have to provide for your family. In this race of life, you end up having no time to do the most important things in life that is enjoying your life to the fullest and doing the things you love. So instead of slaving around for all your life think about retiring early and enjoying your life while you still have the energy to do everything you want.

Early retirement is a huge risk for people who are not on top of their finances. They would keep worrying about their next pay check and how to afford the mortgage but all that is not difficult if you know how to manage your finances properly.

An average couple needs $250,000 to retire with peace. The amount may sound a lot but if divided over the years, it is not that much and can be saved easily. Just like you set up a college fund for your child, set up your retirement account as well and do not touch the money in that account till you retire. Deposit all your bonus checks in your retirement account as well. That is not to say that do not spend on and become a miser but avoid all unnecessary expenses.

Contrary to popular belief, your expenses tend to increase after you retire. Sure, you are not driving to work every day and saving on fuel that way but neither are you staying at home. You need to go out and indulge in some activity. People usually join different clubs or travel and these activities can be expensive so you need to keep in mind that you will have to have enough money to pay for your luxuries once you retire.

The biggest expense that you will encounter after you retire is health care. If you retire early, this expense will not be significant initially but over the course of time the expense will increase as your health will deteriorate. People over sixty five years of age spend an average of $3,586 health annually. You need to consider your future expenses as well when taking an early retirement. Apart from eating healthy and exercising to keep yourself healthy for as long as possible you need to be prepared for situations in which you would require health care. The best thing to help you cover this expense is to get health insurance early on in your life. Another thing you can do is relocate to areas with cheaper medical coverage.

Retirement does not necessarily mean that your income needs to stop. There are other ways to make a living while you do what you love. You do not need a nine to five job and an office to earn enough money to pay for your luxuries, there are other options available too.

Keep investing. Investing helps your money grow but make good investment decisions. Diversify your investment in stocks, gold, real estate etc. There are many options available and choose the best one that would give the most return. Investing is a risk but with the returns you get, it is a risk worth taking.
Early retirement is a decision often thought to be immature. A decision that will result in a lot of criticism but what you need to remember is that it is your life and you need to live it to the fullest and the way to do that is not behind a desk in an office.

Staz Johnson has been passionately blogging about personal finance, investing, real estate, budgeting and more. Check out her website at Essential Finances or become a Facebook Fan