Not everyone wants to work until they're 65, but the allure of retiring at a young age seems out of reach to many. Although it may be difficult, retiring young is not impossible. With hard work, discipline, and persistence you can make your dreams of early retirement come true. Follow this guide, and you'll be able to enjoy the simple things in life.
Method 1 of 2: The Basics: Making Smart Decisions
1 Determine exactly what a young age is. Young may be 40 or 50. In determining this age you'll want to be reasonable. If you're already 27 with no net worth it is going to be very difficult to retire at 30, so the first step is setting the age you want to stop working.
2 Learn to manage finances. Before you start bringing in the money necessary to retire young you'll want to know how to manage your money. There are countless amounts of stories of people who win the lottery, and end up miserable and penniless. No matter how much money you make it is important to manage it well.
4 Save early, save often. The earlier you start saving, the quicker you'll retire. It's a devilishly simple idea, but it's hard to execute, and this is why: we humans value the tangibility and utility of the present over the far-off possibilities of the future. But you're not one of the unthinking masses, are you? You like the idea of saving early and saving often, because you know early retirement is sweet and attainable.
Method 2 of 2: The Nitty-Gritty: Saving (Lots and Lots) of Money
1 Don't get fooled by get-rich-quick scams. They're out there almost everywhere you look: scams that promise easy money with very little effort. The problem is, with them being so widespread, why aren't more people rolling in free money? The painful truth is that it's extremely, extremely hard to get rich, and it's extremely likely that giving your hard-earned money to one of these schemes is a lot like flushing it down the drain. If it's too good to be true, it probably is.
2 Get a Roth IRA. The Roth IRA is a special savings account that lets you bypass taxes provided that you keep your money in it for a certain time (usually after you're 59½ years old). You don't have to keep all your retirement savings in your Roth IRA, but it's a good idea to make tax free dollars for when you're older than 60. There are several bigadvantages of Roth IRAs:
6 Create an automatic income source. It doesn't have to be a 401K, but you should set yourself up to receive funds even while you're not working. You could start a blog with advertisements on each page, or write articles for a revenue sharing site. Whatever you decide needs to generate income on its own; that way when you stop working, you can still pay your bills. Other automatic income sources include:
9 Take advantage of a 401(k) policy if your company offers it. A 401(k) policy is where your company funnels a small portion of your paycheck into a separate, tax-deferred savings account. The maximum current yearly contribution to 401(k) is $17,500.
Hi I am Yen Wei Nee
I have been in insurance industry for 17 years and would like to share here with you my experience and information that is now changing our lives.