If one of your life goals is to retire early, it's important to make the necessary financial moves to support your objective. While everyone knows it's important to save money in conventional retirement accounts (like a 401(k) or IRA), this advice isn't sufficient for individuals who want to retire early. Here are three financial moves to make to help you achieve your goal of early retirement. 

1. Decide What Life in Retirement Looks Like for You

Everyone has their own ideas of how they want to spend their retirement years. Take a few moments to decide how you envision your retirement. Is your goal to travel for a few years and stay in luxurious lodging? Or, maybe you prefer to camp and live off the land (health permitting)? Perhaps one of your goals in early retirement is to spend more time with family and friends.

Once you know how you want to spend your retirement, you can better estimate how much income you'll need to support your vision. Remember, individuals in retirement may make several changes to their lifestyle, especially if they wind up spending 30 or more years retired. Take this into account when estimating your income requirements.

2. Figure Out How You'll Pay for Your Spending Needs

Now that you know how much you'll need for your early retirement, it's time to create a plan to meet these needs. For example, assume that your projections state you'll spend $90,000 your first 10 years in retirement, $80,000 your next 10 years in retirement, and $100,000 your last 10 years of life. 

For your first 10 years in retirement, you might plan to earn $15,000 a year in retirement through part-time work and supplement the remaining amount with your savings. Not accounting for interest and potential dividends, you'll need $750,000 for your first 10 years.

The next 10 years you may be eligible to take Social Security and pension plan payments. Assume that you'll receive $25,000 in Social Security and pension payments. You'll need $550,000 to meet your income for the rest of this period.

During your last 10 years, you should plan to use your savings to cover your expenses. You'll need $1,000,000. In total, your retirement savings should be around $2.3 million. 

3. Start Saving in Accounts You Can Easily Access

One downside of only using 401(k)s and IRAs to save for your retirement is that they have age restrictions. Avoid paying penalties to access your money by using a variety of savings vehicles. Put some of your savings in taxable investment accounts (these don't have age restrictions), CDs, and low-risk money market accounts. 

For more information, reach out to a financial planning firm, such as TFG Wealth Management.