Want to Retire Early? Here are Five Ways to Make it Happen
Curious how to make early retirement a reality? Here are 5 approaches to consider.
Most people grow up, get a job, get handed a retirement account, and meet with their retirement rep about once a year.
And, they go to work wishing for an early retirement, but never actually knowing HOW to make it happen.
Well, I'm here to tell you that early retirement is possible! You just need the right strategy to get you there.
But first - what do I mean by retirement?
The usual definition of retirement is the date when someone can stop working. You may have heard that 'retirement is just a number' and it's true - once you reach the right number in your investment account, or you bring in enough passive income, you can stop working!
So, how do we get to that number?
Here are five different proven approaches to early retirement that you might want to consider:
1. Cash Flow Financial Independence: This is the process of developing enough cash-flowing assets that you can step away from your full-time work for good! Cash-flowing assets can include real estate, online products or courses, and investments.
2. Coast FIRE: First, you should know that 'FIRE' stands for 'Financial Independence Retire Early' and is commonly used when talking about early retirement. There are many versions of 'FIRE'. This one, Coast FIRE, is the process of frontloading your investments until you reach a large enough investment account balance that you can coast into retirement.
3. Barista FIRE: I love this approach to retirement! This is the process of retiring sooner and transitioning to part-time work. It's a great way to ease the burden of full-time work sooner than later. However, you'll want to make sure that you can step away from work at some point due to age or health issues.
4. Lean FIRE: Another one of my favorites! This is when you reduce your cost of living so much that you can retire sooner (since your retirement account won't need to reach a high amount). Less needed for living expenses = less needed to have invested.
5. Good old retirement planning: You can also retire early with a regular retirement plan! The trick is to make the most of your opportunities to get there faster - will you give up a monthly $100 expense to fund your retirement account faster? Will you create a new stream of passive income to fill up your investment account quicker? There are lots of ways to make this work
Which one is best for me?
When it comes to retirement planning, the trick is to know all of your options, then create a customized plan for yourself that is sustainable and fits your unique needs.
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Ready to create your custom plan to reach your early retirement goals? We've got just the resource for you! Grab the FREE Early Retirement Guide here that will walk you through step-by-step how you can make early retirement a reality.
