{"id":668,"date":"2024-05-20T16:55:18","date_gmt":"2024-05-20T16:55:18","guid":{"rendered":"https:\/\/www.drafty.co.uk\/blog\/?p=668"},"modified":"2024-05-24T11:25:21","modified_gmt":"2024-05-24T11:25:21","slug":"how-to-retire-early-with-little-money-uk","status":"publish","type":"post","link":"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/","title":{"rendered":"How To Retire Early with Little Money In The UK?"},"content":{"rendered":"\n<p>If you\u2019re looking for ways to retire early with little money in the UK, then you\u2019re in the right place. Have a read, and you\u2019ll be on your way to early retirement in no time.<\/p>\n\n\n\n<p>The word retirement\u2019s just screams old people, right? <strong>Wrong.<\/strong><\/p>\n\n\n\n<p>So many of us just plod along until we can get our pensions and then we\u2019ll kick back. But why keep slogging away in a full-time job you might not even like when you could be enjoying an early retirement instead.<\/p>\n\n\n\n<p>Retirement isn\u2019t just gardening or playing golf. It could be the means to starting a new career, perusing new goals hobbies, or even travelling. The <em>retirement<\/em> world is your oyster.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#what_is_early_retirement\" >What is Early Retirement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#what_you_can_do_to_be_able_retire_early\" >What You Can Do To Be Able Retire Early<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#1_work_out_how_much_money_you_need_to_retire_early_in_the_uk\" >1. Work out how much money you need to retire early in the UK<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#2_know_where_your_moneys_going_and_start_saving_it\" >2. Know where your money\u2019s going and start saving it<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#3_pay_off_your_debts\" >3. Pay off your debts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#4_where_can_you_get_an_income_from\" >4. Where can you get an income from?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-retire-early-with-little-money-uk\/#5_be_financially_independent\" >5. Be financially independent<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_is_early_retirement\"><\/span><strong>What is Early Retirement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Retiring is all about giving up work and living off whatever income you have. For a lot of people, this happens around the 65 mark because this is when you get your state pension.<\/p>\n\n\n\n<p>To retire early you\u2019d give up work before your pension\u2019s due to start. But you\u2019re going to need some money to be coming in from somewhere \u2013 but where you ask? Keep reading.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_you_can_do_to_be_able_retire_early\"><\/span><strong>What You Can Do To Be Able Retire Early<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_work_out_how_much_money_you_need_to_retire_early_in_the_uk\"><\/span><strong>1. Work out how much money you need to retire early in the UK<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To work out the total money required to retire early, you\u2019re going to have to dig deep. We\u2019re talking your bills, your food and everyday essentials. Once you\u2019ve got a total amount for each month, you\u2019ll know what your lowest income must be. If you want to <strong><a href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-save-for-a-holiday\/\" target=\"_blank\" rel=\"noreferrer noopener\">spend on luxuries like holidays<\/a><\/strong> or hobbies, add on what you\u2019d need to pay for these.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_know_where_your_moneys_going_and_start_saving_it\"><\/span><strong>2. Know where your money\u2019s going and start saving it<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Not to sound like a broken record, but budgeting is essential. When you see how much you spend on things you could go without, you\u2019ll start finding <a href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-save-money-in-london\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.drafty.co.uk\/blog\/how-to-save-money-in-london\/\" rel=\"noreferrer noopener\"><strong>ways to save money<\/strong><\/a> instead. But don\u2019t forget you also need sufficient savings for emergencies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_pay_off_your_debts\"><\/span><strong>3. Pay off your debts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Hands up if you\u2019ve taken <a href=\"https:\/\/www.drafty.co.uk\/loans\/short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>short term loans<\/strong><\/a> or <a href=\"https:\/\/www.drafty.co.uk\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.drafty.co.uk\/\" rel=\"noreferrer noopener\"><strong>payday loans<\/strong><\/a> to make ends meet? It happens, we know. But the money you\u2019re using to pay off these debts could be put to better use.<\/p>\n\n\n\n<p>Work to clear your debts as quickly as possible, it\u2019ll be one less stress to worry about during retirement.<\/p>\n\n\n\n<p>If you want to keep credit as a backup while you are planning for your retirement,, keep one <strong><a href=\"https:\/\/www.drafty.co.uk\/loans\/credit-cards-for-bad-credit\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit card<\/a><\/strong> or a line of credit like Drafty. Then you know you can always cover emergencies if you\u2019re stuck. At least with this type of borrowing you can pay it back fast and get back on track quickly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_where_can_you_get_an_income_from\"><\/span><strong>4. Where can you get an income from?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Think outside the box. There are ways of earning money that don\u2019t involve you having to work full time.<\/p>\n\n\n\n<p>Sure, you could <a href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-make-money-from-a-side-hustle\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>make money from a side hustle<\/strong><\/a>, but here are a few ideas to get you thinking about where that extra cash could come from.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With all your work experience you must have some skills that you could offer to other people or businesses. By selling your services you could earn yourself a nice part-time income. People pay well for expert knowledge that they don\u2019t have themselves.<\/li>\n\n\n\n<li>How big is your home, do you really need all those rooms? Downsizing is a great way to get your hands on some cash from the sale of your property. You could invest the money or use it to buy a second property. The rent you\u2019ll get will be an easy income.<\/li>\n\n\n\n<li>If you don\u2019t want to move, why not rent a room instead? Taking in a lodger can easily top up your income without you having to do much. If your home is in a good location for tourists, try letting out a room for overnight stays. That way you only offer it on dates that suit you.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_be_financially_independent\"><\/span><strong>5. Be financially independent<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Financial independence is what you\u2019re aiming for if you want to retire early. But to be financially independent you\u2019ll need to have these things:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No debts<\/li>\n\n\n\n<li>Little or no mortgage left to pay<\/li>\n\n\n\n<li>Enough income to live on without being overdrawn or having to use your credit card<\/li>\n\n\n\n<li>Savings \u2013 one pot for emergencies and another for when you want to spend on something special<\/li>\n<\/ul>\n\n\n\n<p>If you\u2019re shaking your head thinking <em>this isn\u2019t me right now<\/em>, don\u2019t forget that it could be. Early retirement is possible, it just takes some planning. You might have to make small changes to the way you live, but it\u2019ll be worth it.<\/p>\n\n\n\n<p>Just imagine no more early alarms. No more work-blues, but the freedom to try something new. &nbsp;<\/p>\n\n\n\n<p>Want to find out how a Drafty line of credit can help to boost your cash flow? Check out our \u2018<a href=\"https:\/\/www.drafty.co.uk\/about\/aboutus\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>About Us<\/strong><\/a>\u2019 page.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong>&nbsp;We are not providing financial advice, these are just tips for informational purposes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re looking for ways to retire early with little money in the UK, then you\u2019re in the right place. Have a read, and you\u2019ll be on your way to early retirement in no time. The word retirement\u2019s just screams old people, right? Wrong. So many of us just plod along until we can get [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-668","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-research"},"_links":{"self":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=668"}],"version-history":[{"count":3,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/668\/revisions"}],"predecessor-version":[{"id":1154,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/668\/revisions\/1154"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media\/764"}],"wp:attachment":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}