For some people, the word ‘retirement’ can be depressing as they see that it signals getting old, whereas, for many others, it represents a heavenly dream. A lot of people feel like cogs in big machines, and that their entire careers are geared towards making a living; they just want to kick back and relax. That is why many people plan soon enough for early retirement. If you can’t wait to call it quits and get out of the system, you probably know that you’re not alone. But how do you know if you’re actually ready to tell your boss to peace out?

Here are a few things to consider:

You’ve Paid Your Dues

Mortgage, loans, property installments, massive credit card balances and other forms of debt have to be paid off before a big decision like quitting your job and putting a halt to your career is made. For you to retire comfortably, you need to be sure that you don’t have to worry about making large payments anymore. This leaves your savings and retirement income available for you and your family to enjoy life after work, and a cushion in the event of an emergency.

Your Savings Can Cover Your Retirement Expenses

Retirement takes planning; you have to work out your finances and set a goal for retirement savings, then make sure what you have in your bank account and your investments meet or exceed the amount you were hoping to save. You must also keep in mind that if you do leave work years before your retirement was due, your savings must be enough to cover these additional retirement years. Another point to consider – which will depend on your age – you need to find out if you are eligible for social security or government health care. Your savings will need to cover your expenses until you reach the eligible age.

You Have Passive Income