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Early re�rement means achieving financial independence early in life so that you can focus on a�aining other important goals. The 'FIRE movement' or Financial Independence Re�re Early has been the mantra that millions have been following worldwide.

Like any of the choices in life, early re�rement involves trade-offs. Before you are ready to take the plunge, its important to consider the pros and cons of re�ring early. Early re�rement comes with good health, agility and stamina, giving you more �me to travel. It also provides you with the opportunity to focus on nurturing personal rela�onships.

Before you are ready to take the plunge, it is necessary to understand the financial implica�ons of re�ring early. Early re�rement means a larger re�rement corpus to fund those extra years of re�rement. For instance, if you decide to re�re at 50 instead of 65 and have a life expectancy of 80, you will need to set aside a corpus to fund 30 years of re�rement instead of just 15.

If you want to re�re early, use these 5 steps to make this possible:

1. Cut back on your expenses: You need to compartmentalize your expenditure into necessi�es, comforts and luxuries. Necessi�es are sustenance expenditures you can't do without. While expenses on comforts may be marginally reduced, you could cut back on luxury-based expenses and earmark these savings towards your re�rement corpus. Cu�ng on your spending is much more powerful than increasing your income as it permanently decreases the amount you'll need every month. Furthermore, it's impera�ve to get rid of any form of debt (personal loans, car loans, home loans, etc.) before you re�re.

2. Es�mate your expenses during re�rement: You need to have a clear understanding of how much money you will need during your re�rement years. A simple approach is to take your current monthly expenses and deduct expenditures like conveyance costs that will reduce during re�rement. Add the expected rise in age-related healthcare expenses, higher travel-related expenses (if you want to travel during re�rement), etc. You now have a rough es�mate of your monthly expenses. It's important to factor in infla�on to es�mate future spending needs. A re�rement calculator is a simple tool available online to help es�mate your re�rement corpus by factoring in infla�on.

3. Es�mate your total saving needs: If you want to re�re early, start saving today. The ques�on is how much money do you actually need to re�re? You could use a basic rule of thumb of saving about 25 �mes your current annual spending for your re�rement ki�y. For instance, if you currently spend Rs 6 lakh per year, you will need a re�rement corpus of Rs. 1.5 crore (25 �mes of Rs. 6 lakh) at the beginning of your re�rement.

4. Grow your money: Re�ring early not only means that you have a shorter �me period to earn money, but also that there's going to be a longer �me period when you're not working and only have your savings to support you. Seeking professional guidance and pu�ng your re�rement investment in a balanced por�olio with a �lt towards equity is advisable.

5. Have a plan and s�ck to it: Planning is the most essen�al component for early re�rement. Not only do you need a fool proof plan, but also have to s�ck to it if you want a comfortable and hassle-free re�rement.

The opportunity to spend decades of your life in leisure is very temp�ng, but it takes planning and prepara�on to make your re�rement period a happy one. In other words, proper re�rement planning is the key to make your golden years joyful.