How to Retire Early in 2022
The ultimate guide to leaving the workforce.
Good morning everyone
If you want to retire before you collect social security at 62, you’re not the only one.
Today the term “retire early” doesn’t mean the same thing as it did decades ago. Now it simply means no longer having to work for money. Basically saying you are financially independent.
Before you get too far ahead of yourself, there are a couple of steps to go through so you know how long until you’re ready for retirement.
Step 1:
Determine the lifestyle you want to live.
This step is going to be different for everyone obviously. But I want you to really take it seriously. Here are a couple of things to consider:
Do you want to travel?
Would you consider living somewhere less expensive if it makes more financial sense?
Are you planning on never working again, or will you still have some additional side income?
Step 2:
Evaluate your current finances.
Basically, you gotta add up your income right now. Take count of all your expenses, and look at how much your investing/saving right now. (It’s never too late to start investing.)
Figure all of that out and move on to step three.
Step 3:
Get your retirement number.
Take those numbers you got from step two and plug them into this website, and they will show you what your projected retirement age is.
Okay, so you figure out all the numbers, and either it’s looking good, and props to you, or you are just now scrambling to figure out how to make more money and wish there were more hours in the day.
Either way, here are some ways to help get you to where you’re going faster.
Cut out your expenses.
Obvious enough, right? But yeah, it’s pretty hard, and many people struggle with this. Besides cutting out subscriptions and eating out less, consider buying a multi-family property and renting out the other units to save on your mortgage or rent.
Get out of debt.
Absolutely critical to the early retirement process. I recommend the class debt snowball method. This entails first paying down the debts with the highest interest rates.
Start your own thing.
There is no better way to get ahead, whether it be a side hustle or straight-up business. The reason people do this is that they realize at a day job, 99% of the time, you are trading your time for money. You have to think more exponentially than that. (In other words, make money in your sleep.)
Invest everything you can. ( In my opinion)
Compound interest is a fantastic thing. The best part is anyone can start at any dollar amount. The trick is to start when you are young, but there is no time like the present. If you’re not into the investing world, you should know that some of the best investors just buy and hold the S & P 500.
Well, that brings us to the end of this article, and I know what you’re thinking. It’s not that easy, and your situation is different than everyone else’s.
This is true; your situation is unique to you and no one else. However, this doesn’t mean that you are the exception to the rule. Suppose you take these steps seriously and focus on living below your means and investing the difference. You will get there a lot faster than you might think.
As always, have a great day, and remember to live in the moment.
