For some of us, 30 minutes seems too long to wait (especially if its lunchtime).
But if youre thinking aboutretirement in your 30s, you could be looking at waiting another 30years.
If youve ever looked up how to retire early, youre not alone.
Tina Russell / The Penny Hoarder
Retirement can feel like a lifetime away.
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Do You Need a Six-Figure Income to Retire Early?
The short answer: No.
Long answer: The equation for early retirement isnt just mathematical.
But that doesnt mean you could retire early on any lifestyle.
So at first glance, it is a reasonable amount to base retirement calculations on.
Thats tough to reach, but possible.
Need Easy Money to Help Fund Your Retirement?
Its not easy to save enough money to retire let alone save enough to retireearly.
That takes some serious cash that we dont all have.
Our favorite ways to make quick cash can help you reach your goals.
Create a projected annual budget for your first year in retirement.
Consider the factors above to figure out your expenses better.
It wont be 100% accurate, but itll give you a goal to shoot for in your savings.
Is that amount too big for you right now?
Work up to it.
Youll eventually get used to living without that money.
Want to know how to lower that number?
Lower the amount youll need to live on in retirement!
That would significantly decrease the amount youd need to save to retire early.
Thats $375,000 less!
That could be an entire decade of savings and compound interest saved!
And if you start cutting your expenses today, youll free up money to invest.
As you could see, this is going to take a lot of money.
But dont get discouraged, especially if you are not considering how to retire early.
Its not easy, but it ispossible.
Heard of These Money-Making Hacks?
Ready to find out how some folks effortlessly earn the big bucks?
Millions of Americans ignorethese easy tipsthat could have you padding your wallet in no time.
Pay Off Debt
The market has historically returned 9-11% on investments.
When we adjust for inflation, that becomes 6-8%.
Alternately, a credit card averages19.2%interest.
Focus on paying these debts off above saving for retirement.
Theres also a huge benefit if you look at it from a different perspective.
Lets debunk the myth right now: Saving comes first, and optimizing comes second.
They dont retire because they havent saved enough money.
When youre ready to start optimizing your portfolio, youll find its not as hard as you might think.
Here are a few ways to optimize your retirement savings:
Get your employers 401(k) match.
Open a Roth or traditional IRA (or both!).
Take advantage of the Roth IRA if youre in a low tax bracket.
Opt for low-cost mutual funds with fees of 1% or lower.
Roll over your old 401(k)s into an IRA to consolidate accounts.
Avoid taking early withdrawals or 401(k) loans.
Otherwise, they may attempt to sell you funds that are in their best interest.
Think aboutdiversifying your investmentsbeyond the stock market, too.
First, if you retire at 50 or 55, youll want to stay active mentally and physically.
Second, a business can help you retire earlier than planned.
Or you’re able to start something totally different from your lifelong gig.
The leadingcauses of health-related deathare heart disease, cancer and respiratory diseases.
Whats cheaper, $30 a month for a gym membership?
Or, potentially thousands a month for health insurance that will increase over time?
Other Ways to Save & Make Money for Retirement
1.
In fact, theyre kind of counting on you not noticing.
Luckily, this problem is easy to fix.
Dont waste your time browsing insurance sites for a better deal.
Tired of overpaying for car insurance?
And who doesnt like cash back?
- Theres no impact on your credit score for signing up and no minimum balance requirements ever.
Tap your card for cash back.
Checking account deposits are FDIC-insured up to the maximum amount allowed by law.
Does your bank do all that?
Can You Survive 10 Days of Budgeting?
If you should probably wrangle your budget, it may be time to consider a savings challenge.
Jen Smith is a former staff writer at The Penny Hoarder.
Freelancer Dennis Lynch contributed to this report.
