4 Signs You’re Ready To Retire Early

2 min read By eCompareMo on October 22, 2015

It’s about time you had an introspective look and see if you’re ready to go down that road.

Whether you like it or not, time will come when you finally have to lay down your sword and turn your back away from what you’ve been doing for so long. You have no idea when, but one thing’s for sure: You have to prepare for it as early as now. Do you think you’re ready to retire earlier than most of your contemporaries? Be on the lookout for these signs.

1. You badly feel the need to retire.

Some people seem to have a limitless well of energy that keeps them working all day until old age takes a toll on them. But others feel like retirement is something they have to do early on. However, even if you have the strong urge to get out of the daily grind and explore what’s on the other side, then go for it. Just make sure you’re emotionally ready for the consequences.

See related topic: (Planning Your Retirement: Is It Really Something Everyone Should Look Forward To?)

2. You already have another source of income.

Once you quit your dayjob, you’ll lose the security of having a regular monthly pay. That will leave you in the dark. As early as now, you should be trying your hands at possible money-generating endeavors. This way, when you submit your resignation papers, you won’t only have the guts, but a safety net to fall onto.

See related topic: (4 Money Habits Millennials Need To Learn From Previous Generations)

3. You have a sizeable savings account.

It is important for everyone to have a savings account, especially in this day and age where you’ll never know when you’ll need fluid cash. However, potential early retirees need to have more than just a savings account; if you’re planning to stop working early, you need to have a savings account that can last you at least three years. An emergency fund would be a good idea, too.

4. You’re fully covered.

You don’t know when your body will suddenly complain about many things, especially when you’re straining your body too much or living a sedentary lifestyle. Make you’ve got your premium covered for at least a year after you retire, then work your way from getting extended coverage from there. –Dino Mari Testa