Here's the story of a couple who "retired" at age 38. I have retired in quotes because it seems like they didn't really retire, they simply quit their hectic lifestyles (and jobs), started easier jobs (their own business/website), and spent more time traveling. That said, they do have some good tips in listing their five steps to early retirement. Their list:
1. Track spending
2. Save a lot
3. Invest wisely
4. Put peer pressure into perspective
5. Keep your eye on the prize
It's pretty basic advice, but I've said before that much of personal finance is simply doing the basics. Besides, doing these five things WILL allow you to retire early. However, they won't allow you to retire at 38 -- it will be something more like 55 or 60. Saving 10% to 15% of your income can only go so far unless you're making a boatload every year.
For more thoughts on retirement, see these posts:
It sounds so simple. And it is... so I guess the only thing missing is "Automate it!"
Posted by: BuildAndSucceed | December 05, 2007 at 08:12 AM
Also, find a passive source of income. Rental income is something a lot of people do, but it doesn't have to be that. One of the things I'm trying to do now is diversify my income sources. Right now, I derive 95% of my income from my job, If you can change that mix, then you are well on your way to "retiring" early.
Posted by: Terrence | December 05, 2007 at 04:51 PM
Even making a boatload won't help saving 10-15% unless you are prepared to downsize. Realistically, it should be 25%.
Posted by: Lord | December 05, 2007 at 06:00 PM
Tracking spending is the biggy. It's so easy to spend & squander money in a financial daze if we don't track the bills and coins.
Posted by: Frugal Duchess | December 05, 2007 at 10:26 PM