It’s never too late to start saving for early retirement, but the sooner you start saving and investing your money, the more time it will have to grow.

If you want to retire at 50, you have to be willing to work hard and be creative. You have to take risks, manage your money well and make sacrifices. The key is that if something sounds too good to be true, it usually is. There are no shortcuts or easy options that will get you there in a short time.

Don’t worry if you’re already in your 40s and haven’t started saving yet. Most importantly, now is the time to start saving as much as you can so that by the time you’re 50 years old – or even earlier – you’ll have enough for whatever life has to offer after work.

Related: 17 habits of self-made millionaires who retired early

Here are the actionable steps you need to achieve your goal:

1. Estimate how much you need to retire

The amount of money you need to comfortably retire at age 50 depends on several factors, including your lifestyle and the cost of living in the area where you plan to retire. First, calculate how much income you will need each month during your retirement.

With the 4% rule you can calculate how much you can safely withdraw annually. This rule is based on historical S&P 500 returns, as well as inflation data and other factors. It’s not a guarantee, but it’s a good rule of thumb for how much money you can get out of your savings when you retire.

To calculate your safe withdrawal rate, multiply the size of your savings by 0.04 (4%). That figure represents the amount you need to withdraw each year when you retire, if you want to maintain the same purchasing power throughout your life without needing more income from work or other sources. For example, if you’re 40 years old with $200,000 in savings, multiplying $200,000 by 0.04 results in an annual withdrawal of $8,000 per year — a pretty solid number for a starting retiree.

Related: Want to Retire Early? Do this one thing.

2. Make a financial plan

The next step to retiring early is to create a comprehensive financial plan that outlines your income and expenses, debts, investments, and long-term retirement goals. This will help you figure out how much money you need to save to reach your goal of retiring at age 50.

Consider other sources of income that can supplement your savings, such as rental properties, passive income, or inheritances, and factor them into your plan as well. Also consider possible future expenses, such as education costs and health care costs. Estimate how much you need for each expense and include it in your total retirement savings calculations.

3. Make saving a priority

Once you know how much money you need, work backwards to figure out how much you need to save to reach your goal. There are two main types of savings: emergency savings funds (“rainy day” funds) and investment funds (such as pension plans). Emergency savings should be kept in a safe place where it cannot be stolen or lost if something goes wrong with your bank account, for example a high-yield online bank account or cash under your mattress at home. This money is for unexpected expenses like medical bills or travel expenses that pop up when you least expect them.

Determine how much you can contribute to your retirement, taking into account any employer match programs or tax incentives that may be available. You should prioritize saving for retirement by setting aside money each month in savings or investment accounts such as IRAs or 401(k)s. Consider increasing the premium rates you’ve set for yourself and make sure you’re taking full advantage of employer contributions. Also, be sure to research the options available and choose the most appropriate one for your current financial situation.

4. Reduce your expenses

By saving on luxuries and other non-essential items, you can save more monthly money, which can be used for retirement savings. Consider eating out less, getting shared rides instead of owning a car, or cutting out expensive gym memberships if possible.

Related: 4 things to consider before retiring early

5. Clear your debt

Paying off outstanding debt should be high on your list of priorities; high interest rates can dramatically reduce potential savings if left unchecked, so focus on paying off quickly while still investing regularly for your retirement goals. Make sure you understand all the terms and conditions of any loan before signing anything – this includes knowing the exact payment amounts, interest rates and length of repayment periods – this ensures you aren’t caught off guard by unexpected charges over the course of the loan. time if you ever find yourself unable to pay on time due to an emergency or other unforeseen circumstance.

Related: 5 strategies for reducing overall corporate debt

6. Invest wisely

When investing for retirement, it’s important to have a diversified portfolio that includes a mix of stocks, bonds, mutual funds, and cash investments. You should also consider risk tolerance and ensure that your chosen investments align with your personal goals and objectives. Investing in low cost indexes or mutual funds is one of the best ways to grow your wealth over time. Be sure to account for inflation when you invest so you don’t fall behind if prices rise over time.

Diversifying your investments is the best way to protect yourself against a downturn in the market. This means spreading your money across multiple asset classes, such as stocks, bonds, and cash.

But diversification is not a panacea. It’s important to remember that even if you’re diversified across all three of these categories, you’ll still lose money if some assets fall and others rise. Historically, in some years no category has performed particularly well or badly; it’s just that they tend to generally move together based on market conditions over time.

7. Draw up a budget

A good way to stay on track with retirement savings is to create a budget and stick to it. Track your expenses, set financial goals, and review your progress regularly. Doing this will ensure that you meet your retirement savings goals while maintaining a comfortable lifestyle.

Related: Becoming a Millionaire and Retiring Young

8. Re-evaluate regularly

Track progress throughout your working life; If possible, consider increasing savings or adjusting goals if circumstances have changed unexpectedly due to an emergency or other unforeseen event.

Retiring at age 50 is an ambitious goal, but it can be achieved with the right plan and commitment. Creating a comprehensive financial plan that outlines your income and expenses, cutting non-essential items from your budget, and investing wisely will help you reach this milestone. While it may take some time for all of these steps to come together, taking the first step towards retirement planning will set you on the path to achieving financial freedom at a younger age than most people are used to. So start preparing now!