Here are 7 signs you are ready to retire early:
- You know where your money goes and have a clear picture of your monthly expenses, so you can confidently manage your finances without a full-time job.
- You are debt-free, especially mortgage-free, which drastically reduces your living expenses and financial obligations.
- You have multiple sources of income such as rental income, dividends, or part-time work that provide financial stability without relying solely on a 9-to-5 job.
- Your investments are diversified globally to protect and grow your wealth through different market conditions.
- You are in good health and have the energy to enjoy life outside of work, making early retirement appealing.
- You feel burnt out or no longer find fulfillment in your work, pushing you to seek a more meaningful and less stressful lifestyle.
- You have a purpose or plan for what you want to do in retirement, whether it's traveling, volunteering, or pursuing personal passions, which gives you excitement and motivation for early retirement.
Additionally, being mentally ready to leave work and having your social and emotional needs met with hobbies, passions, and a support network are important signs of readiness.
These pointers reflect both financial readiness and emotional preparedness for an early retirement transition.