Disciplined Saving and Investing
Investor and author Tim Ferriss defines early retirement investing in this way: Investing in assets that will either generate passive income or appreciate over time. Using this strategy, you can save for early retirement without sacrificing the chance to earn a decent return on your portfolio.
Married couple Ryan and Amanda Gardner did just that. These 30-somethings were able to retire at the age of 30 by taking advantage of these variables. The couple’s income comes mainly from Ryan’s electronics business and Amanda’s self-employment as a certified nutrition consultant. They also collect a small amount of rent from an apartment they own.
Cultivate Multiple Income Streams
It is said that the best form of riches are those you do not have to work for, but can rely on when you need them. That may be an interesting concept for many people, especially a new graduate who is just starting their first job and funding their own retirement plan. And that is the whole point of retiring early ” to be able to live your life without regard to age and rely on your savings and investments to support you.
The problem is, most people do not save enough for retirement. Given the competition in the job market, many people can be stuck in a job they’re not so interested in for at least twenty years. Trying to save enough when you rely on a single paycheck is not easy. If you do try to save, you may be forced to cut back on your lifestyle. Wouldn’t it be great if you can build up to a decent nest egg without sacrificing your current lifestyle?
One way you can boost your savings without cutting back your spending is to take advantage of side income opportunity. Think of side income streams as your retirement plan B. With several streams of income, you’ll never have to worry about retirement again.
Mini-retirements are prolonged vacations that allow you to temporarily exit the workforce and stage your financial independence. Many people consider mini-retirements as a realistic lifestyle choice while they are still in their 20s, 30s, or even their 40s.
When you take a mini retirement, you can do just that – retire. In fact, you’ll feel so liberated and free that you may actually say goodbye to the 9-to-5 office life and never look back.
Gordon Bennett, a researcher at the Stanford Center on Longevity and Early Retirement, describes a mini-retirement as “a period of pleasurable withdrawal from paid employment, often lasting a few months, and almost always paid for out of savings.”
These days, mini-retirements are gaining in popularity. In fact, the number of retirement specialists who focus on helping people find mini-retirements has doubled in just the last decade. That’s right. You can sign up with a retirement specialist … or you can read this article and learn how to design your own mini-retirement for yourself.