#Simple math to early retirement series
While this is a hotly debated topic in the early retirement community, based on a series of papers known as the Trinity Studies, you need to save approximately 25-30x your expected annual expenses to have enough money to last you for the rest of your life. Fast Track Your Early Retirement Plan by Investing More.Increase & Diversify Your Income Streams.Cut Back On Your Three Biggest Expenses.Figure Up How Much Money You Need to Retire.Over the next years, you’ll want, and need, to refine, your walk-away number calculations as the cost of your lifestyle evolves. No matter where you are starting from today, it’s likely going to take you 1, 2, 5, 10, 20, maybe 30 years or more to have enough money to walk away. Just realize, your number will change and should change, as you change. This is by no means an exact science, since it’s a blending of how much money you need to live the life you want today and planning for a future “you” that you haven’t yet become. The first step in building your early retirement strategy, you need to determine your retire early or financial independence (FI) number – the amount of money you need for work to become optional. Saving – How much money you’re saving and investing.Expenses – How much money you’re spending.Maximizing Your Early Retirement StrategyĪ good early retirement strategy is built on maximizing three levers: Now that we’ve got that settled, let me show you how I retired early and how you can too. The old school idea that when you retire you are done working, is just that, an old school idea. So to me, early retirement means being able to make the shift from work you have to do to work you want to do. It’s been scientifically proven that working is actually good for you and many people who completely quit working start losing their mental faculties and people who retire early might actually die sooner. There’s a big difference between doing work you love or a job that you could leave if you get tired of it because you have the freedom and flexibility that saving up enough money can give you. But you can choose to keep working as I do if that’s what you enjoy doing. In This Article What is Early Retirement?Įarly retirement is no longer defined as the moment when you stop working forever, it’s simply the moment when you no longer have to work for money. While you might be thinking, how can you retire at 30? Well, it’s important to first define what early retirement actually means to you. I was able to retire early at the age of 30 using this exact early retirement strategy.
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