How to retire early?

Retiring early, also known as "financial independence" or "FIRE" (Financial Independence, Retire Early), is a lifestyle and savings strategy that involves aggressively saving and investing money in order to achieve financial independence and retire earlier than traditional retirement age.

Here are some steps that may help someone retire early:
Step 1

Establish a goal

Setting a specific, measurable goal for when you want to retire early and how much savings you will need to achieve that goal.

Step 2

Create a budget

Create a budget and stick to it, cutting unnecessary expenses and increasing savings as much as possible.

Step 3

Invest aggressively

Investing in a diversified portfolio of assets that have the potential for high returns, such as shares and real estate.

Step 4

Reduce debt

Reducing debt as much as possible, including paying off any credit card or student loan debt.

Step 5

Building multiple streams of income

Building multiple streams of income, such as rental properties, side businesses, or dividends-paying shares, to supplement savings and investments.

Step 6

Continual learning and education

Stay informed about current economic conditions and market trends to make informed investment decisions.

Step 7

Live frugally

Live frugally and avoid lifestyle inflation, which can erode savings over time.

Step 8

Insurance

Having enough insurance coverage to protect your assets and income in case of unexpected events such as illness, injury or death.

It's important to note that retiring early is a challenging goal and requires a significant amount of savings and a high level of discipline. It's important to consult with a financial adviser to ensure that you have a solid plan in place and that you are aware of the potential risks and trade-offs that come with retiring early.

Important information and disclaimer

  • Any advice on this publication is of a general nature only and has not been tailored to your specific circumstances. Before taking action on this information, please seek your personal advice. Past performance is not a reliable guide for future returns. The information on this page reflects our understanding of the existing legislation, standards, etc.

    In some cases, the information has been provided to us by third parties. While the information is believed to be accurate and reliable, but this is not guaranteed in any way.

  • Neither AIFP nor its responsible persons or employees give any warranty of accuracy, nor accept any responsibility for errors or omissions in the information provided on this page.