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How to Retire Early | The $50 a Day Early Retirement Strategy

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https://millennialmoney.com/early-retirement-strategy/

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How to Retire Early | The $50 a Day Early Retirement Strategy
Early Retirement isn't easy, but it's definitely easier than you think. Learn the 7 step strategy to retire early with $50 a day.

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What early retirement means

What early retirement means

Early retirement is not defined as when you stop working forever, but as having the freedom and flexibility that saving up enough money can give you if you want to leave a job.

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How to retire early

A good early retirement strategy is built on maximizing three aspects: Income, expenses, and savings.

To build your early retirement strategy, you need to determine your re...

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The money you need for early retirement

Based on a series of papers known as the Trinity Studies, you need to save 25-30 times your expected annual expenses to have enough money to last you for the rest of your life.

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Cut back on your expenses

Cut back on your three biggest expenses.

  • Housing: The easiest way to do this is by house hacking, where you rent or buy a 2 or 3 bedroom apartment and rent out the e...

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Increase and diversify your income streams

Go out and try to make more money. Start by optimizing your full-time job and starting a side hustle.

  • Optimize your 9 to 5: Negotiate a raise and work remotely, so y...

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Set daily, weekly, monthly, and annual savings goals

Most of the retirement calculators come out with a number you will need to "retire" based on your inputs and current progression. The numbers are so large that they seem impossibl...

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Create a simple investing strategy

A good early retirement investing strategy should be simple, focused on stocks, bonds, and real estate, and be executed consistently.

  • Ensure to have both a short- an...

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Fast track your early retirement

Deposit as much money as possible into your investment accounts every day, even if it is only $5. If you get a bonus, invest it. If you make extra money on a side hustle, invest it...

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The most important numbers to track

The two most important numbers to track your early retirement strategy are:

  • Your savings rate: This is the percentage of your income that you're saving either be...

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SIMILAR ARTICLES & IDEAS:

Early Mistakes, Late Start & Future Hurdles.

Savings and investments should be part of a monthly budget even when young or just starting a career.

You cannot save enough if you are waiting until your late 30's before...

Myth vs. Reality in Retirement Planning

  • I’m not that old:  It’s not about NOW but saving for your old days when you can no longer work full time. 
  • I’ll wait for a lump sum is just an excuse to postpone planning or procrastinate.
  • Assumed Family/External Support: It’s better to be prepared for eventualities and have contingency funds in hand.
  • Financial Requirements Decrease: Medical costs increase with age. Inflation and other factors might also come into play.
  • I will not live that long or I won’t retire: People tend to live longer, but they will suffer from medical ailments.

Retirement Goals

To have a secure and financially independent retired life during your golden years with regular post retirement income, a corpus of savings/investments and a safe shelter or home.

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Next Level Money

Next Level Money

Our desire to achieve next-level money or to master, control and optimize it, can only be fulfilled by us, and it goes beyond just earning, saving and investing money.

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Automation Of Money

Automation of money will lead to a ‘coasting’ life, but it won’t get one to the next level. While we already know that the goal is to make money work for us, instead of slogging ourselves for earning it, it is not enough to simply save and let the money grow in banks.

One has to be aware of the pitfalls of wastage of money, be able to shun mindless consumerism, and embrace minimalism to move towards that level.

Pushing The Boundaries Of Security and Comfort

One cannot be complacent and run after security and comfort. Longing for a default, peaceful life of status quo will not put one on the track of next-level money.

One has to get to work, piercing the comfort zone bubble and the man-made boundaries that are around us.

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Education and wealth

College degrees can add significant wealth. The more education you have, the more you’ll earn and the less likely you are to be unemployed. And if you can keep debt low while getting th...

Controlling expenses and wealth

Those who control their spending do much better. This doesn’t mean you have to save on EVERYTHING, just some things. Enjoy your life by spending on what you want here and there, just keep it in line so you have excess to save and invest. Even 10% will make you wealthy over time.

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacte...

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacted by the amount invested.