10 Things To Do To Retire Early
1. Increase Income
Double income (you and spouse). Sell things on Etsy. Drive for Uber. Drive semi truck. Start a blog.
2. Save money
Contribute to Roth IRA (open an account for $100 starts the clock). Invest in Real Estate (fix it up while living in it, resell 2-3 years later – avoids capital gains tax). Put your tax refund into investment. Any commissions(above base). Also put some money in savings/stock market.
3. Avoid Debt
Other than the mortgage, if we don’t have money to buy something, don’t buy it until save up for it.
4. Invest in Low Cost Funds
VTSAX, bond funds, international stock funds (nothing aggressive, low cost)
5. Learn about 4% Rule
Yearly Spending x 25 = Amount need invested to retire.
If you retire early x3
6. Track Your Spending! (use Quicken)
Even if you track after you spend (not on a budget spending)
7. SPEND LESS
#1 Item: House: downsize, save on mortgage, lawn service, house keeping, heating bills, insurance, maintenance. Everywhere: Shopping, dining out, entertainment, drive cheap (gas mileage & repair), maybe downsize to 1 car, are you living close to work?, spend on things you are passionate about I.e health, travel;
8. Evaluate Pre/Post Tax Money (IRA @ age 59.5 or penalty)
Make sure you have enough money so you don’t have to tap into pretax money.
9. Insured our Assets. Health, home owners, car
10. Consider Plan B, C, D…
Move to cheaper part of the country, house sit,