How to Retire Early in Your 30s – Have you ever thought about when you will retire? At what age will you retire? 50 years or 65 years? In fact, you don’t have to wait that long to retire.
According to a story in Forbes magazine, a couple in California recently retired young in their mid-30s with $1 million in bank deposits. Ok, let’s just be realistic. Most workers in Indonesia are unlikely to have savings of more than IDR 13 billion. Especially if you have a family and have children and only rely on income from the profession as an office employee. It is impossible!
Unlike the couple from California, United States of America. The couple is Travis and Amanda, they have no children yet. They both have a sizable income as technology professionals and both have a strong desire in life.
Maybe we can learn from this millennial couple about the basics of retiring early and having lots of savings. Check out tips on early retirement techniques in their 30s:
How to retire early in your 30s
Knowing Your Goal
When Travis quit his job in IT (information technology) in 2012, he pursued a new passion, namely financial freedom without working. So he and Amanda decided to retire early.
They both think that they need USD 1 million to make it happen. They plan to spend 3% – 4% of their money’s worth each year and expect an annual growth rate of 7%.
So, how do you want your retirement to be? Would you like to travel the world? Starting a small business? Have a house near the beach? Knowing what you want to do after quitting your job is a vital step towards making that dream a reality.
Achieve Dreams Together
By managing your finances together, your partner will better know the current financial situation and how to move forward. Under these circumstances, Travis and Amanda collected all of their financial accounts and registered them with the financial site Mint.com for free.
In addition, the couple also did a complete review of their assets and expenses. They save on expenses and successfully earn extra money from all their assets.
Travis and Amanda saved 65% of their salary for about three years in a row. The two of them ended up saving $1 million (Rp13 billion more) after saving the money for three years.
They live in a residence that costs $2,200 per year in rent. The cheapest rent in a residence in Oakland. In addition, they also use public transportation more often than driving private vehicles, and wash their own clothes. Of course this saves more money.
Beware of Fees and Taxes
Daily expenses can cost you a lot of money without you even realizing it. You should review and question every expense you pay, even on your retirement fund. Amanda and Travis drained most of their retirement money on low-cost ETFs.
Your Job is a Real Money Maker
Often you forget that income is a source of funds from an investment plan that must be done. What you can do to increase your salary or add other income (business for example), will dramatically advance your dreams.
Also Read: What is Compensation, Types, Objectives and Policies in Business
That’s the discussion about How to Retire Early in Your 30s With Billions of Savings, WOW..!!! Hope it’s useful