How to Retire Young

To retire young is the dream of millions of people all around the world. Many people want to enjoy life while they are still young and healthy. The good news is that it is not impossible to retire at an early age. It will take careful planning but it is possible. To start with, however, it is important to make a differentiation between full retirement and near total retirement.

Most young retirees do some part time work out of their home to bring in regular income. It is not uncommon for a young retiree to do internet marketing, run an internet retail site, or invest in the stock market or Forex market. After all, a young person will want plenty of money to live on. He or she will also need to save up for the golden years.


Retire Early or Younger by Saving Money

In order to retire younger, one should be prepared to reduce expenses. It has been estimated that the average person spends over $6,200 on food and drink in a single year. However, one can drastically reduce this expense by smart shopping and/or moving to a cheap state such as New Hampshire or South Carolina. One can also bring down the cost of living by not using credit cards unless absolutely necessary. One cannot retire that young and rack up thousands of dollars in debt. Living a healthy lifestyle also brings down the cost of living dramatically. A person spends around $100,000 over the course of twenty years on medical care. However, a person who stays fit and healthy will not have to spend near this amount.


Retire Younger by Living Abroad

One can often retire younger by moving to a different country. Many countries have a much lower cost of living than the United States. However, a person who wants to retire early will need to show money in the bank and stable monthly income. This monthly income can come from an annuity or some other investment. Some cheap retirement destinations include Thailand, Mexico, Uruguay, Costa Rica, Panama and the Philippines.

A person who wants to retire early or younger should carefully calculate how much he or she will need. The person’s annual cost of living will depend on where the person lives and what he or she wants to do. It is important to also save up money for later on; a young retiree will often need more money as he or she gets on in years. However, by taking all factors into consideration and planning carefully, it is not impossible to retire younger and still live a comfortable life.


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