retire at 35


While the idea of retiring at 35 may seem far-fetched, even if you’re in your late teens or early 20s, it’s actually possible. It does require a significant amount of effort and diligence, as you’ll want to set aside a large sum of money as quickly as possible. Additionally, you’ll need to invest wisely, ensuring the cash you save can grow enough to meet your long-term needs. If you want to give it a go, here are some rules to follow to retire at 35.

Focus on Financial Freedom Instead of “Retirement”

For many people, the term “retirement” usually means a complete exit from the workforce. As a result, it could be a difficult target to hit by 35.

Instead of making retiring at 35 your goal, aim for financial freedom by 35 instead. With financial freedom, you’re able to make choices about how you live and work instead of needing to maintain a traditional full-time job.

For example, with financial freedom, you may supplement your savings with a part-time side hustle of your choosing, ideally one you can pick up or set down at your leisure. By using this option instead of a traditional definition of retirement, you’re giving yourself flexibility and making the target easier to hit.

Save as Much of Your Income as Possible

If you want to achieve financial freedom by age 35, then you need to save incredibly aggressively. In some cases, stashing 70 to 80 percent of your income might be necessary. Otherwise, you won’t have enough money invested to hit your target so quickly.

In most cases, you’ll need to limit your spending to legitimate needs, forgoing essentially all wants. Additionally, you’ll have to keep your core expenses as low as possible, remaining frugal when it comes to housing, food, transportation, and more.

Generally, this level of saving does require sacrifices. However, if it means achieving financial freedom by 35, it’s worth doing.

Increase Your Income at Every Opportunity

The more income you make, the more you can set aside. As a result, you need to pursue income-boosting opportunities whenever they become available. Along with seeking raises and promotions at your primary job, look for part-time and side hustle opportunities that can supplement your earnings. By doing so, you can set aside 70 to 80 percent of what you make from all of your income sources, allowing your nest egg to grow as fast as possible.

Don’t Just Save, Invest

Putting 70 to 80 percent of your earnings into a traditional savings account – even a high-yield one – won’t let you grow your money enough to retire at 35. Instead, you need to choose options with higher returns, and that usually means investing.

Building a diversified stock portfolio creates opportunities for gains. You may benefit from rising stock prices, dividends, and other forms of growth. Plus, you can offset riskier investments, which often have the most growth potential, with others, ensuring you don’t lose all of your cash if something goes unexpectedly.

You may want to look at other income-generating investments, too. For example, having a rental property can provide you with solid ongoing income. Even if you use a property manager to ensure it’s taken care of, you’ll usually bring in far more than you need to spend to keep and maintain the property. Plus, its income-producing potential can be lifelong, essentially giving you access to money during the entire time you own the rental.

However, don’t overlook traditional retirement accounts. Unlike brokerage accounts, these come with tax benefits you can realize now or later, depending on the option you choose. While you can’t withdraw the money until you reach retirement age, barring a few exceptions, it can give you a new resource to tap during your golden years.

Do you have any tips that can help someone retire at 35? Are you aiming for early retirement but think that 35 is too challenging of a goal, leading you to select a different target? Are you simply hoping that you’ll be able to retire at some point? Share your thoughts in the comments below.

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