![]() ![]() Justin who blogs at Root of Good retired at age 33 and during his career, he made between $48,000 and $69,000 while his wife made between $40,000 to $74,000. If you earn $100,000, it is much easier to live on half, compared to someone making $30,000 trying to save half and living on $15,000.Ī couple of the early retirement bloggers are pretty transparent with their income in their explanation about how they reached early retirement so you can get an idea of how much they earned and how much they saved. The gap between your income and your expenses are the two determining factors in how much you can save, and ultimately, how early you can retire. It cannot be disputed that earning a high income makes saving a larger percentage of your income easier. Most people assume that you have to make an extremely high salary to retire so young. Now that the FIRE movement is getting more mainstream, the media has featured a good amount of stories focused on early retirees. Here are the factors that I’ve noticed in the journey of extremely early retirees: Early retirement is simple…but it’s not easy! It takes discipline and dedication. While everyone’s journey is unique, you start to see some commonalities between those who are able to accomplish this awesome feat. Your expenses today may be greatly different from your expenses in the future, especially when some early retirees do so before they even have children.īeing obsessed with the Financial Independence and Retire Early movement (FIRE), I’ve read countless blog posts from various bloggers who have reached early FIRE or on the way there. However, if you save 50% of your income, you can retire in just 16 years! You can play around with the calculator here, but I think the early retirement/fi spreadsheet on Budgets Are Sexy is more detailed and a better predictor of when you can retire because it takes into account projected expenses in the future. According to the math here, which assumes a rate of return after inflation of 5% and that you live off 4% of the nest egg in retirement, it will take 45 years to retire if you save 15%. One of the most important blog posts I’ve read since learning about the possibility of early retirement is “The Shockingly Simple Math Behind Early Retirement.” Basically, it says that how long it takes you to retire depends on how much you can save. Retiring doesn’t mean you stop working, just that you no longer NEED to work for money.) (For purposes of this post, I’m going to say retire but I really prefer financial independence. Money Mustache, where the bloggers wrote about retiring in their 30s, that sounded even better than retiring at age 55. However, when I discovered the blogs, Early Retirement Extreme and then Mr. The mainstream media always talks about how it’s impossible to retire so I counted my lucky stars that I would not only be able to retire, but retire at an early age. Working in government, I have the benefit of a pension which makes it possible for many employees to retire at around age 55. ![]()
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