11 Essential Milestones in Early Retirement (How Many Are You Hitting?)

You worked hard and made sacrifices to finally live your retirement years in the way you've always dreamed. Now, as a retiree, your focus should shift from accumulating financial security to maintaining a stress-free retirement. The skills and knowledge you used for planning your retirement are the same ones you'll need to navigate the years ahead with confidence.

Here are 11 milestones to reach in the early years of your retirement. How are you doing?

The first milestone in retirement is establishing a budget and following it. You should be using a spreadsheet or another tool to track money coming in and going out. Focus on the essentials, such as utilities, healthcare expenses, and food, and pay special attention to extras and luxury items—how are they adding up? Be sure the bills are paid first.

High-interest debt can cost you thousands, so think twice about using your credit cards if you can't pay the balance monthly. If you're carrying a balance, try to pay it off by making extra payments. Loan consolidation may also be an option that can help you eliminate multiple obligations more quickly.

Living debt-free is a great milestone to achieve during those early retirement years.

By now, you've calculated your "number" and should be living by it. Your retirement budget helps you visualize gaps between income and expenses. This gap outlines the amount you'll need to save, invest, or pursue other opportunities, such as part-time work.

Check your income and expenses regularly to make sure you're not withdrawing too much from investments at a time. This will help your money last longer.

An emergency fund is beneficial at all stages of life. In early retirement, it is essential to have a dedicated account with sufficient funds to cover your needs for three to six months. When unexpected expenses arise, such as storm damage to your home or vehicle repairs, you'll have enough set aside to pay for them.

If you take money out, be sure you put money back in.

Inflation is a reality that reduces the value of your savings and investments. The money you've carefully saved for retirement covers far less than it did while you were working or even a year ago. The average inflation rate in the United States is 2 to 3% per year, so it's essential to regularly monitor your assets to ensure they continue to grow in value.

You can apply for Social Security as early as age 62. However, doing so permanently reduces the amount of money you receive. If you have enough in savings, you may even want to delay your Social Security benefits until age 70, which can increase the amount you'll receive by as much as 8%.

Healthcare is one of the largest expenses in retirement. If you've successfully enrolled in Medicare (starting at age 65), chosen the right supplemental plans, or are still working and covered by your employer's insurance, that's one less thing you need to worry about.

It's much easier to stay in shape than it is to get in shape. Have you made health and fitness a priority? Aim for at least 30 minutes of exercise five days a week. Other healthy habits you may need to incorporate into your lifestyle include:

• Quit smoking
• Reduce alcohol intake
• Eat a nutritionally balanced diet rich in fruits, vegetables, and fiber
• Manage stress
• Visit your physician regularly

Going from a 9-to-5 job to total freedom can be a major adjustment. Focus on your mental health by having a purpose in your retirement. Whether you want to spend more time with your grandkids, travel the world, or pursue personal goals or hobbies, having a purpose can help you enjoy a fulfilling life.

No matter how much you've researched on your own, a professional financial planner can help you optimize your investments and evaluate your savings. A financial planner can also tell you the best places to put your money for the highest return. This move can provide invaluable peace of mind during retirement.

Your investment portfolio is the cornerstone of a comfortable retirement. A healthy portfolio provides multiple streams of income and includes a mix of accounts. These may include a Roth IRA, 401 (k), savings accounts, stocks, bonds, and mutual funds. Your portfolio should be diversified, low-cost, and automated.

The early stages of retirement can be fun and exciting, but it's essential to stay focused on your finances, health, and goals. Ensure you meet these milestones early and regularly review your progress. Establishing routines and smart habits can help you enjoy your golden years with peace of mind.

Ideally, you started planning for retirement in your mid-20s, 30s, and 40s, but it's never too late to make plans, change things up as needed, or even see if you can retire sooner. The key is to have a plan and stick to it so you can enjoy the best years of your life.