Have you ever wondered, “How can I get to the point where I can retire early?” It could have happened after a particularly long shift or a frustrating day in which little appears to have progressed despite your best efforts? Or perhaps you’ve been inspired, you’ve had a wonderful vacation or spent time with your children, and you’re wondering, ‘How can I have more time to do these things instead of working?’
Before you take any action, you should define what constitutes early retirement for you. Does it imply quitting work entirely, or keeping some small part-time job(s) that provide a much lower income but a lot more free time? Is it something you want to do to improve your health, live somewhere else, or travel? It will be possible to calculate the cost once you have defined what early retirement means for you and what changes you may need to make.
You must concentrate on identifying the benefits you seek and ranking them in order of importance – perhaps gaining some benefits immediately and others later, a few years down the road. Are you looking for a quieter, slower lifestyle (which probably costs less than what you are currently spending) or do you want to do more and be more active (which may also cost more)?
You must be fully aware of any disadvantages, including not only the cost but also your living arrangements. Will it affect your relationship with your partner if she or he continues to work or if you require a different type or size of home?
To achieve early retirement, you will need to reduce your working hours or change your job. Perhaps starting a small part-time business doing something you already enjoy but aren’t paid for, or using your work experience to help someone younger with their business, can provide an income while taking up less time? There are numerous strategies to choose from, so be flexible and open to new ideas.
You must then finalise your plan and calculate how much income you will require each year. Calculate how much will come from existing fixed sources and, at some point, from your pension. Take a step back and assess where you are; will you need a savings and investment plan to achieve this? How will you account for healthcare and other expenses (don’t forget taxes!)?
Paga, which was founded in 2009, has become synonymous with payments in Nigeria by addressing the challenges that millions of people face when looking for safe and convenient payment methods. Services include the ability to send money to any phone number in Nigeria for the beneficiary to redeem at any Paga agent or at any ATM via a cardless withdrawal. Paga customers can also deposit money into Nigerian bank accounts, pay bills, and top up mobile phone airtime. Paga promotes prudent cash flow management, financial planning, and budget allocation by allowing customers to benefit from these functions and take control of their finances.
If you stick to your plan, you can achieve the early retirement you’ve always desired with the help of Paga.