A Beginners Guide to Early Retirement

Early retirement is simply the process of retiring before the standard retirement age and often refers to retirements that start decades before the typical age. An early retirement aims to provide the maximum free time during our best years of life. After all, what is the point of saving bucket-loads of money for retirement only to be too old and frail to use it properly? My aim in life is to rapidly save enough money to allow me to permanently retire from paid employment. This is not to say that I won’t continue to work after I reach the point of financial independence, just that I won’t have to. The process for doing this is to drastically reduce expenditure so that you can save a large percentage of your salary (50% or more) for your early retirement. The very basic steps are: Live on 25% of your salary Invest the 75% Reach the point at which passive investment income exceeds expenses and Retire early! They are the steps and they are easy to articulate and difficult to argue with, but incredibly challenging to implement well. Let’s start with common objections at this stage: I can’t live on 25% of my wage! […]

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