Do you want to retire young and happy?
Do you want to retire early, have more time to travel with your friends or family? Would you like the freedom to do whatever you want, whenever you want, with whomever you want? Are you tired of waking up early every morning to do the 9-5 thing at the office?
You should think about retiring early. Contrary to popular belief, retirement has nothing to do with age but with income. With enough savings or income you can retire young and still be happy.
How, you ask? By being an ambitious go-getter, changing your thinking, and saving your money.
Typically you want to save 5-15% towards retirement, but that is when you plan on retiring at 65, the “typical” retirement age. If you want to retire early, say by 40 years old, you should increase your savings to 40-80% of what you earn. That number can seem very overwhelming if you just started to think about early retirement, so let’s break it down by the numbers for you.
- Make $30,000 a year
- Have $5,000 in your savings account
- Work for 20 years total (i.e. age 20-40)
you can have $2 million in retirement by saving $4,256.98 a month with a 6% investment rate of return.
Yes, we’re sure you’re looking at these numbers thinking that’s nearly impossible. Fear not! To achieve this goal you just need to change your thinking and find ways to make supplemental income. There are so many jobs and businesses that you can do from home in the “extra” or spare time or even pick up a part-time or weekend job. Whatever it is – that extra money should go into savings to reach your early retirement goal.
- Make $60,000 a year
- Have $20,000 in your savings account already
- Work for 20 years and retire at age 45
you would need to save $4,042.04 a month for 20 years at an investment rate of 6% to have $2 million.
Again, you can always make extra money by getting what some people are calling a “side hustle“. As you earn more income, you can continue to seek out opportunities to earn and save even more money and retire even earlier or wealthier.
- Have a salary of $100,000 a year
- Have a savings of $40,000 already
- Work for 20 years and retire early
you can reach $2 million if you save $3,755.48 a month with an investment return of 6%. Level up and find an investment return of 10% and you would only have to save $1,861.71 a month.
Bonus tip for you: if you want to achieve early retirement – no matter how much you make – you should keep track of your expenses, track your spending, and save money where you can. Continue to remind yourself of your ultimate goal of retiring early and all of the fun things that you can do with your new free time. Imagine the happiness of giving back, volunteering, watching your kids games or traveling full-time. Happiness is yours now while you work 9-5 and later when you’re free 24/7.
If you stick to your financial goals, are ambitious, change your thinking, curb your spending, and continue to save, you too can retire young and happy!