When you think of your retirement, you probably imagine yourself to be sexagenerian or more. While most people wait until they are done working to retire, some have different aspirations. Allan Hu is all of 27 and considers himself retired. Here are his tips for you to achieve this milestone.
Calculate how much you need to retire.
You need to make an informed financial decision if you want to retire early. Calculate your expenses for each year after you retire to figure out how much money you’ll need. “Don’t forget to include money for things you love like travel, a second home, or your hobbies,” Hu said. “You want your retirement to be fun; it won’t be if you’re completely pinching pennies the whole time.”
This one may seem obvious, but you’ll have to drastically up your savings rate if you want to retire by the age of 27. Some entrepreneurs will save up to 50% of their income or more for retirement. “Living on less now can help you achieve your dreams later.”
The stock market is your best friend when you’re trying to retire early. Work with an investment professional to figure out how to put your money to good use. “I used to be a professional trader, but the stock market is very stressful. Do your research and ask for help investing when you need it.”
Get a side hustle.
You’ll likely have to increase your income to achieve your goals. One way to do that is to develop a side hustle. This is a job you do in your free time to make extra money. “Anyone can start a side hustle. There are so many options out there. Find one that speaks to you and jump in.”
Make more money in your career.
Since you’ll need to make more money to retire, don’t neglect the possibility of acquiring higher income from your primary job. “Don’t be afraid to ask for a raise. If you don’t get one, see if you can find a better rate of pay elsewhere.”
If retiring early is your dream, it’s definitely achievable. With advice from experts like Allan Hu, you can live a carefree life much sooner than you thought possible.