The Retire Early Bible- How To Retire Early?

Marcus Tan

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Published in

DataDrivenInvestor

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3 min read

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1 day ago

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Steps to getting an early retirement

We all want to retire early. I know I do.

What does retiring early mean for me? It is the:

• Ability to decide how my days look.
• Ability to choose who I spend my time with.
• Ability to choose what to work on.

Having the freedom to call the shots and not answer to a boss, that’s financial freedom.

How does one get there?

1. Inheriting the money
2. Marry into wealth
3. Building your own business/ side hustle
4. Consistently investing your money and letting it compound
5. Finding new deals that are often not readily available to the general masses.
6. Project ventures and alternative pursuits.

I believe numbers 1 and 2 are pretty self-explanatory. To marry into wealth you need to make yourself attractive and desirable with the qualities to match.

For number 3, I believe there is no hard and fast rule to building a successful business. It depends on the gap in the marketplace and filling that gap. It could also be doing something more efficiently. Or perhaps being creative and creating a product or service that consumers want.

Number 4 is about setting aside a sum of money to consistently invest and compound so that you can retire early.

Mr Money Moustache and the Financial Independence Retire Early (FIRE) community championed early retirement through frugal living.

This could involve saving up to 50% or more of one’s income towards retirement and living very frugally.

Below is an example of setting aside $1,500 to get close to $500k (starting at 25 years old and retiring at 40 years old), 15 years with a 7% rate of return. Not bad if you ask me.