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How to Retire in Your Mid 30s

How to Retire in Your Mid 30s

We have always followed the simple rule, work hard when you are young so that you can be ready to retire when you’re older. But with technology constantly growing, we are gaining more ways of understanding knowledge in the business field. Here are some helpful tips to help you get started on early retirement. 

1. Find out how much you need to save for retirement 

The idea of planning an early retirement savings account involves you need to save up at least 5 million dollars or more to never have to work again, especially in this economy. But this is a general number that may not apply to your financial situation or your lifestyle. A more accurate way to figure out your annual spending is to divide this amount of money by the number of years you plan to work. The large range allows you to determine how much you need to save, based on your certain lifestyle. The higher this number is, the safer your investments will be. You will have less of a chance of running out of money during your early retirement.

2. Set up a goal amount

Now, depending on how you are living, using the 4% withdrawal rate, will help you decide how much money you will need to save to retire successfully and comfortably. other factors that depend on your financial success are how many people there are in your home are you saving on your own. Now with a partner, your chance of having a higher income is pretty large. For a family who has certain lifestyle choices, you should just sit down and choose a rough amount, higher than you might need, and work towards that goal.


3. Consult with a financial planner  

Most people believe that hiring a financial planner is a waste of money when there are other free sources available like getting research books on financial planning. But a financial planner can help you work toward your retirement goal and organize your investments. Try asking your financial planner about your asset allocations. Asset allocations are how you give your savings among different types of investments, such as stock funds, bond funds, and stable value or money market investments. Depending on how you distribute your money, your savings will also affect how much risk you are taking on your returns. For example, having a portfolio that holds 80% bonds and 20% stocks will provide a return and risk pattern that will be different from a portfolio holding 15% bonds and 85% stocks.

4. Accept a 401k from your employer 

Most employer retirement plans offer a 401k. This means that your employer sponsors a fund where your employer matches the amount of money in this fund. To retire in your 30s, you should increase your 401k contributions to a higher percentage rate to grow your savings much higher and how much your company will match. You should also keep in mind you will have a much shorter period in which to contribute to your 401k and that there are penalties for accessing your 401k early before you are 60.

5. Pay off all your debts earlier 


If you have multiple piles of debt, try to consolidate them into one account that has the lowest interest rates. Pay off as much of your debt as possible every month making a reasonable payment until the debt is paid off. Then, avoid getting back into debt through the use of credit cards or loans. Keep your credit score healthy and remain debt-free.

6. Earn income from outside your job 

Focus on reaching your retirement goal faster by incorporating freelance work outside of your day job. Take odd jobs for family or friends that will add funds to your savings account. Remember that every penny you save now brings you one step closer to retiring in your 30s. Consider finding skills or other abilities that you are good at so you can channel time and energy into extra forms of income. This could be a gardening or landscaping side business, freelance writing business, or delivery system. Try to maximize your skills and add them to your savings account.

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7. Bike or Walk rather than always driving 

One of the biggest expenses is likely owning a car. Let’s just agree with the fact that owning a car itself calls for a lot of maintenance and insurance, it can be a big money suck. If it is possible, biking to work or to run errands rather than pay to fill up your gas tank and using your car sounds more efficient. Depending on how far you live from certain destinations, investing in a good bike means you can set aside hundreds of dollars and watch it grow to thousands. This will provide you with free transportation for a long time, possibly for life. Just think of it this way, the more steps you take, the more money you are stacking in your savings.

8. No more eating out

On average, a majority of Americans will spend a good amount of their income on buying fast food a year. Try reducing the amount of money you spend on food by cooking your meals and only eating out maybe once or twice a month. There are several insightful budget food sites and cookbooks with recipes that take a short amount of time and won’t hurt your wallet. Make grocery shopping part of your weekly routine. Make a list of grocery items to get at the store to avoid expensive compulsive purchases or buying unnecessary items.

9. Find an activity 

Minimize your free time spending by looking for free activities in your area or city. Go for hikes or walks, play soccer, go to street fairs or local events, and take advantage of entertainment that doesn’t involve spending money. Having fun does not always require you to spend money. 

10. Convince your partner in your retirement plan 

If you and your partner are living together, the two of you should consider getting involved in focusing on your retirement plan. Work together to achieve a mutual retirement plan and agree to lifestyle changes that will help you both achieve your retirement goals.


If you make early retirement your highest priority in life and follow a disciplined path to obtaining it, you may be able to leave work permanently in your 30s.