5 surefire ways to get to retire earlier than you thought


Retirement can seem like a difficult goal to reach, so the thought of achieving it early may seem downright impossible.

But getting to retirement quicker doesn't require genius-level investing knowledge or extreme deprivation. With a plan, hard work and discipline, you may be able to get there sooner rather than later.

RELATED: House hunters, here are 5 secrets to getting the best home loans

The following are five surefire ways to get to retirement quicker:

Set clear goals for yourself

Consumer adviser Clark Howard recently shared advice from Chris Reining, who decided in his late 20s that he wanted to retire early. By the time he turned 37, he was able to reach this goal.

Howard said he thought setting clear goals was one of the most important things that Reining did. He labeled his investment account "Retire early" so he could see the words every day. In addition, Reining tracked his progress by using a spreadsheet you can get on his website. He wanted to save up 25 times his annual expenses before retiring.

Work hard

The Forbes Finance Council recommends working hard and being disciplined as the most reliable ways to retire early.

This can be achieved through a high-paying job combined with saving as much of your income as possible. Another path is starting your own business.

Reduce spending

Forbes quotes a blogger who retired early and says that streamlining your spending is an important step toward achieving this goal. It's not glamorous or complicated, but it works.

He suggests scaling back on luxuries and investing your savings in a low-cost index fund. When you accumulate 25 to 30 times your annual spending in this type of account, you can quit working for the rest of your life.

Cut your housing expenses

If you're like most people, your home is your biggest expense, so it's also your biggest opportunity to save, according to Money.

Housing costs take up about a third of the average budget, so Money recommends not taking out the biggest mortgage you can get. Live in a more modest-sized home when possible, and in some cases, homeowners can purchase a two-family home, living in one side and renting out the other.

Put your money to work - wisely

CNBC talked to Scott Alan Turner, who had more than $70,000 in debt at age 25, yet managed to turn things around and retire by age 44.

He put his money to work and although he made some mistakes in the beginning, he evolved into what he calls a boring investor. His savings are automatically funneled into low-cost index funds, which Warren Buffet calls a surefire way to build wealth.


Reader Comments ...


Next Up in Business

Should you talk about your pay? Career experts weigh in
Should you talk about your pay? Career experts weigh in

Even with nearly every cultural taboo thrown to the wind− from discussing sexual orientation to politics; one last conversational taboo still exist among Americans − how much we get paid. "These days, it's okay to talk about the troubles we're having with our children or even our marriages," noted one blogger from PayScale...
BB&T recovering after 'technical issue' left customers without access to accounts, cash
BB&T recovering after 'technical issue' left customers without access to accounts, cash

Millions of BB&T customers were locked out of their accounts Thursday night and Friday morning due to an outage that bank officials said was caused by a "technical issue." The interruption of services was first reported Thursday night and appeared to last until just before noon Friday. “At this time, many of our services...
Krog Street Market developer plans redo of aging Atlanta hotel
Krog Street Market developer plans redo of aging Atlanta hotel

The developer of Atlanta’s Krog Street Market plans to convert an aging extended stay hotel in the Piedmont Heights neighborhood of the city into an eclectic boutique hotel. Atlanta-based Paces Properties said it has signed a deal with Texas hotelier Liz Lambert and her Austin-based hospitality company Bunkhouse to retrofit the...
UPS to add new electric delivery trucks to fleet
UPS to add new electric delivery trucks to fleet

UPS plans to deploy 50 electric delivery trucks as part of its fleet of brown vehicles, a move it expects could give a boost to adoption of electric vehicles across the industry. Sandy Springs-based UPS in its Thursday announcement said the trucks – which it is partnering with electric vehicle manufacturer Workhorse Group Inc....
Kempner: Big Delta squeezes Georgia and metro Atlanta’s poorest county
Kempner: Big Delta squeezes Georgia and metro Atlanta’s poorest county

Here’s what we should never forget about Delta: it is fabulously good for Georgia’s economy, and it never tires of squeezing fellow Georgians for more profits. Picture more than 500 local high school students showing up at the headquarters of mighty Delta Air Lines to protest. They were there — at the urging of Clayton County...
More Stories