Almost 75% of Aussies aged forty-five and working want to retire in five years. By global standards, Aussies are much more in favour of retiring early, surpassed by only Argentina and France. However, harbouring the desire doesn’t imply most people manage to retire by the time they are fifty. Almost half of all those who want to retire early don’t go through with their plans. Those who are planning now have reportedly stated in many surveys that they don’t see themselves actually retiring although they strongly wish to do so.

The biggest hindrance in retiring early is financial. Most people are not financially equipped to work ten years less and don’t have enough saved up to keep living off their savings for decades. According to many surveys, around 70% of those wishing early retirement don’t have enough savings. Lack of savings is not the only reason though. Having dependents and existing debts are two common reasons why people choose to keep working.

Making a household budget is quintessential to financial planning. It is rather simple to come up with a budget. You have your income, you can make a list of expenses you cannot avoid and then decide how much you wish to save every month. Accordingly, you need to cut corners somewhere, invest your money or save, try to increase your income and you should always look for smarter ways to save on unavoidable expenses. The real challenge is to adhere to a household budget. Here is how you can approach the whole daunting challenge of financial planning.