How to retire really early
Do you dream of retiring early? Sleeping in and traveling the world? Not having to show up to work? Plenty of people do it – retire in their 30s or 40s or even earlier. You don’t have to have a huge stock portfolio or a fancy job to get there. Here’s what you do need to do:
1) Buy assets. In addition to a retirement fund, you’re going to need assets – such as a home that is fully paid off that you can live in. To get there, you’re going to have to pay down personal loans, credit cards, and other debts and start saving for a home.
2) Create passive forms of income. Many people who retire early do so because they create a passive form of income. They create something that brings in royalties or they buy discount real estate and collect rent on it. Investigate the types of passive income you could tap into.
3) Monetize play. Some people who retire early simply retire from their job. They instead start collecting cash from a hobby – such as a craft they sell online or a hobby that they create a small side business around. If you have assets and another form of passive income, making a few hundred dollars a month for a few hours of work here and there is a nice way to semi-retire early.
4) Make saving a lifestyle. Even if you have assets and some alternative forms of income, you’re going to need a retirement fund. Talk to a financial professional to determine how much you will need in your fund to retire with the lifestyle you want. Then, start saving as much as humanly possible to get to that magic number as soon as you can. Be sure to read our guide to increasing your income to find even more cash to contribute to your fund.