Retire Before 40

Retiring before 40 seems impossible or a dream to most people but it does not have to be.  Following some basic and disciplined tips that prior early retirees have used will help you to retire before 40 or decide if this lifestyle is for you.

1. Get out of debt- The successful early retirees had one thing in common, no debt.  Having a house and car that is paid off is a nice feeling to have both financially and emotionally.  Paying off debt incluse credit cards, student loans, and personal loans as well since debt is the enemy of early retirement.  Many retirees move to low cost of living areas and buy houses for less than $50,000 and buy an older used car for a few thousand.

2. Reduce expenses to the bone – Reducing your monthly expenses has two effects, increasing your savings and reducing the amount of money you need for retirement.  Cutting any expense that is not absolutely necessary is the perfect way to set your self up for a more frugal lifestyle while preparing for retirement.  You will enjoy the things you do spend money on much more and not take them for granted.

3. Save 50% or more – Saving 50% or more seems impossible but for most early retirees they save more than this.  Saving a large percentage of your income allows you to achieve your financial goals much faster which is crucial for retiring before 40.

4. Invest aggresively – You will need your money working harder than you do and have the ability to produce large returns.  When you get to within 5 years of your retirement reduce your risk exposure by investing in money market mutual funds or c.d.s.

In conclusion, retiring before 40 is an option for almost anyone if they start young enough and follow the tips from successful early retirees at howtoretirebefore40.com.