Early Retirement: Myth or Reality?
Ever thought of retiring early and leaving the work-force behind? Here you can find everything you need to know about Early Retirement.
You may have already heard or read about people that decided to stop working at young age and live entirely off passive income. Although making this choice seems unrealistic and many would say impossible, there are people out there enjoying their free lives having done exactly this.
I’m here to tell you what you need to know before making the decision to retire early (or extremely early). This way you can start preparing for the changes you’ll have to make in your life in order to achieve this goal.
First off, imagine what you want to do with your life? Are you religious? If so, you probably believe in some form of salvation and relief at the end of your life, making it easier to deal with the day by day drag that’s been tormenting you for most of your life. But what if you don’t believe in that stuff? What happens when your life ends? Will you just disappear? If so, you’d probably want to make something more of your current life. These are questions no one can answer but yourself.
You probably already have a feeling with your day to day working life. Maybe you like your job and enjoy spending time on it every day. On the other hand, chances are you feel like living in a drag, doing the same things over and over again waiting for weekend to come and end, just to start things over again. If so, then the alternative of ending this job as soon as possible and live life on your own terms might sound attractive to you.
Good news! This is entirely possible if, and only if you’re willing to alter your lifestyle to achieve this goal as soon as possible. Here ill make a brief overview of the things you’ll need to accomplish in order to retire as soon as 6 or 7 years from now.
Our goal is to build an amount of money big enough to live entirely off rent or investment income. There’s an easy way to calculate what this amount should be for you. Considering a 4% generated passive income through rent or investments one would need 25 times his/her annual spendings in order to live entirely of the money saved up. Now many people will think: Hmm, I’m currently spending about 40k every year which means I’ll need 1 million to retire early. My god, that’s too much, forget it that’s never gonna happen!
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