Most of the entrepreneurs we know are workaholics, nonetheless they all say they want to work hard when they are young and retire at an early age. Ideal no? As we are also positioned in the same crowd, we compiled a list of things to know in your 20s to be able to retire when you are 35 would be more that welcome. How many of you don’t dream of spending your days on the beach, maybe owning a bar or even a small hotel and working in a less fast-paced environment, in a place where it’s always warm?
We sure do!
So here is what you need to consider if you wish to retire early and successfully!
- Know your financial situation very well. Track your income, spending’s, assets and liabilities. This is not only valid for companies, but for individuals too. Keep a spreadsheet and know your numbers like the back of your hand.
- Figure out how much you will need as retirement money. What is your goal? The rule is that you should have 25 times the yearly expenses from now, to be able to lead a good life after you stop working.
- Cut down on your expenses! Do not spend your money on things you don’t really need. Get a smaller place, cheaper car (if any), cut subscriptions you use once a year, cook your own meals, buy in bulk. There are many ways to spend smartly and slash your expenses.
- Maximize your income now, so you get to your retirement plan faster and smoother. The Internet offers you unlimited possibilities of freelance work, side jobs, investments (why not), AirBnb, Uber, write a book! Find what would work better with you!
- Pay all your debts. If you have debt you will never be able to retire. Work on a plan to eliminate all debt, in the shortest amount of time possible. Once you pay this off, you will be free to sail off into early retirement.
If you do these 5 things, you’ll be way ahead of the game and much closer to retirement!