How to Retire Early?

Early Retirement is a relatively new concept for people of India. But it is possible to retire early, in your thirties with following a Good Strategy. So How to Retire Early? This Article is all about How can you retire early?

Well, Retiring early is not an easy task. Well, I am not saying that its impossible. It’s absolutely possible. But for that, You have to work hard, both Physically & Mentally.

How to Retire Early?

Well, First of all you Must have to define your goals. Means what you want to do after taking an early retirement in your early 30s? Well, for most of the people, Retirement means less expenses but this is entirely a different scenario. I am talking about retiring in your early 30s (30-35). So your expenses after retirement will be increased in contrast to traditional retirement (60-65). Because you are still young and you have taken retirement early to enjoy your rest of the life so your expenses will be high.

- Plan your Expenses on a Paper -

So you should first take a paper & pencil without being lazy and you should write down that, what do you want to do after taking an early retirement for the rest of your life and in front of that, you should write down possible expenses. Say for Example, you want to travel the world or want to start your own Business on which you are very much passionate about or you want to see the 7 wonders or you want to live in some other part of the world or anything else?

Everyone has different goals and dreams. So you should ask yourself first that which things will bring happiness for me? Write it down on a piece of paper and calculate the possible expense. After that do a total and count a monthly expense. Say for Example Total comes Rs.5 Lakhs per Month. So it means that you will require a Passive Income of more than Rs.5 Lakh per month to fulfill your dreams and maintain a retirement life until you die.

So This Final Figure is your ultimate goal. You have to develop a Passive Income in that manner, so that it provides you a steady Passive Cashflow of more than Rs.5 Lakh (or may be more or less than this) per month passively means without working you hard in the economy.

Please Note here that, Passive Income is the Income, which generates from your Assets and which does not require your physical or mental hard work to generate it. Say for Example, Portfolio Income, Rental Income, Business Income, Dividends, Capital Gains, Web Properties Income, Royalties, Copyrights are some examples of Passive Income.

So In short, you have to decide your retirement figure and after that you have to focus on building Passive Income sources in such a way so that it can provide you a healthy passive income flow steadily after you take retirement. This is the Basic Principal of taking early retirement.

Some Steps & Tips to Retire Early -

- Increase your Income – Make a Lots of Money. Well, for you the scenario is different. Choose a Career or job that promises you highest Income such as Investment Bankers, Engineer, Software Engineer, High Business management positions…etc… Don’t think that I don’t like this job or a career. Because for you, ultimate goal is the early retirement so making a lots of Money in the early stages of life is very essential. You are no longer permanent with that job or a career. So it is worthless to think that I will only chose a career about which I am passionate about.

- Reduce your Expenses – Reduce your expenses as much as possible. Because you have to divert the additional cash flow towards Investments because you have to retire early. So cut down all of your un necessary expenses and divert it towards investments.

- Start Investing as early as possible means NOW – The earlier you start savings & Investing, the early you can retire. Because it takes a time to work Compound interest in favour of you.

- Start a Web Business if you are a Techie – Well, Not the all of us are Techie (Means Technology Genius). But I have observed that, most of the people who retired early in their thirties have successfully developed a Web Business and than sold it to others for higher Profits. And by Trading their own Business, they became Millionaires & Multi-millionaires in their early thirties.

Well, of course all of you can’t do this. But remember this thing in mind if right now you are a teen age and want to retire in your twenties or thirties. This is the Information Age and in the Information age it is really easy to get rich fast. And the Web properties appreciates much faster than any other traditional offline assets such as stocks, bonds, gold, mutual funds & real estate.

Read this Article, This Blog’s Valuation has been doubled (100% Capital Gain) in Last 70 days only.

- Consider the single life, at least until you retire. To achieve an early retirement, a period of sacrifice and hard work is mandatory, and finding a partner who shares your ambition sufficiently to make that sacrifice will be difficult. Furthermore, finding someone who shares your vision for geographic relocation and kids, and will maintain that vision, is doubly difficult. You can pursue relationships at leisure once you are retired, and you will have more time and energy to focus on your career while you are earning. But if true (and frugal) love should come your way before your retirement, you may want to pair up then instead of waiting.

- Having children can be expensive

So the above are the few Tips about retiring early. If you follow the above Tips & Suggestions strictly than you can definitely retire in your early 30s…………!!!!!!!!!!