Most people that want to know how to retire at 30 are disheartened when they learn that it takes hard work and dedication to do so. The truth is that if you are young and determined, you can retire at the tender age of 30. However, you have to follow these steps and stick with the plan in order to do so.
- Start now. If you are serious about retiring at 30, it is important that you start working through these steps now. The more time you have to save for retirement, the more likely you are to reach your goal.
- Find out how many months you have until you turn 30. Subtract your current age from 30 and then divide that number by 12. This will give you the number of months you will be able to save for your retirement. You will need this number later, so keep it nearby.
- Find out how much money you will need in order to retire. In order to figure this out, you will need to decide how much you can comfortably live on and how long you think you will live past age 30. Try to be realistic with these numbers and include inflation in your estimate or you might find yourself eating dog food during retirement.
- Use an online retirement calculator to find out how much you need to save every month in order to retire by your goal. Simply enter your monetary retirement goal, how many months you have until retirement and the interest rate you think you will be able to get. Once you submit this information, you will be told how much you need to save every month in order to reach your retirement goal. If you are like most people, this will be a very large number. So use these next steps to help find that money every month.
- Live on the bare minimum you can so you can reach your savings goal. In order to reach your goal of retiring at 30 you will have to make large sacrifices now so you can enjoy life later. So try moving into a cheap apartment, cut out cable and internet, stop eating out, eat inexpensively and sell any cars with a payment and purchase a cheap, paid-for car. Every dollar you are able to save will bring you that much closer to your goal of retiring by 30. So live like a poor person now so you can stop working completely in a few years.
- Start finding ways to make more money to invest for retirement. Often times, you will also have to bring in extra income to reach your monthly savings goal. Start working extra hours at your current job, get a second job, start freelancing, write online, mow lawns or even donate plasma. Work as hard as you can to bring in the money you need. It may be difficult to do it now, but it will be worth it when you do not have to work for the rest of your life.
- Invest in a variety of stocks and mutual funds with a good outlook for the short term. Since you likely have less than ten years to save and invest for your retirement, it is important that you invest for the short term and spread out what you invest in. Find several investments with a solid five to ten year track record and spread your savings throughout these. This will help ensure you do not lose everything you save just before you plan on retiring.
- Keep saving and investing aggressively until you turn 30 or reach your goals. You have to remember that you only have a short period of time to save for your retirement. So whenever you feel like quitting because you feel overworked, remember that every bit of hard work will pay off ten-fold in the long run. So continue to live frugally and save aggressively so that you can say you are retired at 30.