If You Want to Retire Early, Start Doing These 12 Things Right Now

If you can implement some or all of the items on this list your journey to early retirement will be short and sweet. The hardest part is actually starting.“The thing to do is to make so much money that you don’t have to work after the age of twenty-seven. In case this is impracticable, stop work at the earliest possible moment, even if it is at a quarter past eleven on the morning of the day when you find you do have enough money.”-Robert Benchley

Dreaming of Early Retirement

While I won’t retire by the time I’m 27(I’m 36), I’m hoping to retire before I’m 45.  I’m getting more and more antsy at work.  I pretty much daydream about early retirement whenever there’s downtime.

Even though I’m not retired yet, the following list are things that I have done or currently do to help me reach early retirement as fast as possible.  If you follow this list, or do only some of the items on the list, it should help you reach early retirement as well!

Max Out Your 401k and IRA if Possible

Look, I know it’s really hard to save that much money.  Start small!  It was only 4 years ago that I was putting in 3% every paycheck.  3% was the amount I needed to contribute to get the match.  I wanted to pay down my debts before I really started investing.

Once I was debt free I slowly started contributing more and more until I was comfortable contributing the max amount.  I’m pretty sure I changed my contribution amount like four times in one year!

Pay Off Debt

Some people suggest paying off all debt before investing anything.  When I was in debt, I saved enough to get the 401k match and then focused on paying off my debts.  Making sure that my emergency fund was fully funded when I was paying off my debt was also a high priority for me.

I kept a fully funded emergency fund because I had been laid off before at a time when I wasn’t in a secure financial situation and IT SUCKED! Thanks to parental help, I made it through, but it’s a situation that I never wanted to be in again. Continue reading “If You Want to Retire Early, Start Doing These 12 Things Right Now”