I've written a few posts on retiring early (See Six Keys to a Great Early Retirement and Can You Retire by 50?). It's a topic I'm interested in and am sure others like as well -- if for no other reason than to dream. ;-)
So here's another piece on how to retire early, this time from Money. It starts with a question from a young adult who's doing well financially so far:
I'm a 24-year-old recent college graduate who makes about $100,000 a year, but I have no savings. What's the best way for me to invest my money so I can retire by age 55?
24? $100,000 a year? Good start on the road to wealth, huh? If he can just spend less than he earns and save the difference, he'll be set. Money sees the value in this as well with their answer:
Before we get into how to invest your money, let's talk about something more important: getting into the habit of saving on a regular basis.
That's right, although most people tend to think of investing as the most important way to build wealth, the truth is that all the investing savvy in the world doesn't mean diddly squat if you don't have savings to invest.
This is why I love Money magazine -- they agree with me so much! ;-)
Here's the meat of what they recommend:
Save, save, save. Begin by setting up an emergency savings fund. Once you've set up that fund, you can start building your retirement savings. And then, invest!
It really isn't rocket science. It's simply spending less than you earn and saving the difference over a long, long time. That's a tried and true method of retiring in solid financial shape.
For more Free Money Finance posts on this topic, see these links:
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