Have you ever wondered whether it is possible to retire early in your 30s or 40s? Well I'm here to tell you that it is absolutely possible and to get there you don't need to be a billionaire, a celebrity or a professional athlete.

In essence, how early you can retire depends on two key factors: your savings rate and your financial discipline

Your savings rate is determined by how much you can save divided by how much you earn in a year. In other words, if you can lower your expenses and then save and invest the remaining balance of your take home pay, you can expedite your retirement age.

The second factor is your financial discipline to avoid lifestyle inflation and extravagant spending as your income grows over the years. Instead you want to continuously invest your savings in a cashflow generating asset like real estate or stock market where you can earn 5% investment returns after inflation during your saving years. This could be easily accomplished by investing passively in index funds which we've talked a lot about on our channel. You’ll then live off of the “4% safe withdrawal rate” after retirement, with some flexibility in your spending during recessions.

Here's a table, courtesy of Mr. Money Mustache, that shows you how many years you will have to work starting from a net worth of zero, to retire in as little as 2, 4 or even 7 years of work.

As you can see, for someone who makes a salary of $80K who's able to save and invest 75% of it diligently by lowering their costs, they can retire in as early as 7 years!

In other words, it is not about how much you make but rather how much you spend and how much you can save and invest that determines how soon you can retire.

🌺Download Blossom App for Free to track your portfolio, connect with over 60,000 Canadian Investors, and to see my portfolio & trades! 💰🚀 [ Ссылка ]

✅ Subscribe to Moementum Channel for more Investing and Financial Freedom videos: [ Ссылка ]

📝Link to Mr. Money Mustache article that inspired this video: [ Ссылка ]

📌Invest like a bull with Seeking Alpha Premium (Exclusive Offer available for Moementum Subscribers)! Seeking Alpha Stock Screener picks top value stocks with strong long-term growth potential: [ Ссылка ]

✅ Other recommended videos:
11 Stock Market Sectors (Dividend Investing for Beginners) [$112,000 Portfolio 💰😎😃]: [ Ссылка ]
7 Income Sources in Our 30s (Journey to Financial Independence 😎): [ Ссылка ]
Best Bond Index ETFs (Passive Investing during High Inflation in Canada 🍁): [ Ссылка ]
Low Risk, High Yield Canadian ETFs in 2022 (Monthly Passive Income): [ Ссылка ]

🚩 What retirement age are you aiming for? Let us know in the comment section.

#earlyretirement #firemovement #financialfreedom

*************************
Give this video a thumbs up if you enjoyed it.
Share the message if you were inspired!

*** Special Offers ***
► Check out NEO FINANCIAL Cashback Mastercard and Get $50 when you sign up for your card using this referral link: [ Ссылка ]

✅ Get rewarded with up to $3,000 in cash to trade stocks or crypto commission-free from Wealthsimple Trade using the referral code IZ0RTW ... 𝗖𝐋𝐈𝗖𝐊 𝐁𝗘𝐋𝐎𝐖 👇
[ Ссылка ]

✅ Use the following referral link to earn $20 when you open a new EQ Bank (Equitable Bank) account: [ Ссылка ]

✅ Open a Tangerine account with my Orange Key 56004245S1 and get a $50 bonus!

✅Get $10,000 managed free for 12 months through the Wealthsimple Investing promo link below: [ Ссылка ]

✅Get a Free Stock by using this referral code:
Invest in US Stocks and ETFs on Stake. Join today using my referral code mehrann962 and we can both get a free stock: [ Ссылка ]

✅Recommended Books:
Master Your Mortgage for Financial Freedom: How to Use The Smith Manoeuvre in Canada to Make Your Mortgage Tax-Deductible and Create Wealth: [ Ссылка ]
Rich Dad, poor Dad: [ Ссылка ]
Taming the Money Sharks: 8 Super-Easy Stock Investment Maxims: [ Ссылка ]
The Complete Guide to Online Stock Market Investing: The Definitive 20-Day Guide: [ Ссылка ]

You can also find us on:
Facebook: [ Ссылка ]
Instagram: [ Ссылка ]
Twitter: [ Ссылка ]
TikTok: [ Ссылка ]

свернуть