• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Cult Of Money

Cult Of Money

Personal finance for the crypto-curious.

  • About
  • Podcast
  • Contact
  • Cryptocurrency
      • How To Start

      • What Is Cryptocurrency And How To Invest?
      • What Is Bitcoin And How Does It Work?
      • What Is Ethereum And How Does It Work?
      • Most Common Crypto And NFT Scams (And How To Avoid Them)
      • Proof Of Work vs. Proof Of Stake vs. Proof Of History
      • How To Invest In Crypto In Your IRA Or 401k
      • Tools + Resources

      • Best Cryptocurrency Exchanges
      • Best Cryptocurrency Wallets
      • Best Crypto Savings Accounts
      • Best Tax Software For Crypto And NFT Traders
      • Reviews

      • Coinbase Review
      • Gemini Review
      • BlockFi Review
      • Binance Review
      • Hodlnaut Review
      • Ledger Wallet Review
  • DeFi
      • How To Start

      • What Is DeFi?
      • What Is Staking Your Crypto?
      • Centralized vs. Decentralized Exchange
      • Tools + Resources

      • What Is Uniswap And How Do Decentralized Exchanges Work?
      • Reviews

  • NFT
      • How To Start

      • What Is An NFT?
      • Tools + Resources

      • Most Popular Play-To-Earn Crypto Games
      • Popular Projects

      • What Are VeeFriends And Are They Worth It?
      • Bored Ape Yacht Club NFTs Are Popular (And Expensive)
      • What Is The Sandbox And How Can You Play?
      • Why Visa Bought A CryptoPunk
  • Investing
      • How To Start

      • Tools + Accounts

      • Reviews

  • Personal Finance
      • Banking

      • Best Bitcoin Rewards Checking Accounts
      • Tools + Resources

      • Tax

      • Income Tax Prep Guide
      • Bookkeeping And Accounting For Crypto And NFTs
Retirement Planning

How to Retire Before You’re 40 Years Old

By Alexa Mason • October 24, 2021

At The Cult of Money, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners whom we receive compensation from. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. CultOfMoney.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The Cult of Money does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. CultOfMoney.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

Does the thought of working until you’re 65 make you sick? If so, you’re not alone!

More and more people have been discovering that it’s not only possible to retire early but that it’s what they want to do with their lives. I’ve found myself in that camp as well.

The people who reach retirement early all have a set of commonalities. One of the big ones is being able to enjoy life and find happiness without needing to spend a ton of money.

Want to learn the other set of traits the early retirees seem to have (mostly) in common? Here’s how to retire before you’re forty years old.


Table of Contents
Avoid/Pay Down All Consumer Debt
Keep Your Expenses Low and Income High
Invest the Difference

Earn More Money
Stay Smart but Consistent

Avoid/Pay Down All Consumer Debt

When it comes to early retirement debt is a big no-no. Unless your debt is profitable (like a loan on a rental home) or is for a modest mortgage with a low interest rate, you need to get rid of it. This is especially true if you have high interest debt.

The first thing you should eliminate is credit card debt. After that go for any other high interest debts, paying close attention to anything that has 10% APR or above.

Once you get consumer debt paid off you’ll have to decide whether you want to go ahead and accelerate student loan or mortgage pay-offs. (You might be better off investing that extra money instead of using it to pay down this type of debt. At least not right away.)

Make your number on goal to eradicate high interest, consumer debt. After that you can determine whether you’re better off using your extra money to pay down your other debt or if investing it is the smart way to go.

Keep Your Expenses Low and Income High

A common thread among those who have retired early is frugality. It seems like the early retirement crowd favor living on less while still fully enjoying their lives. (And yes that is completely possible!)

If you currently have a spending problem this is something that will need to be addressed.

Keeping your expenses low will help you save money now and live on less in the future. If you can make this adjustment you’ll set yourself up for success.

Try creating a daily gratitude practice. This will help you find joy in what you already have instead of always seeking something new (and spending money) in an attempt to be happy.

Invest the Difference

Once you’ve paid off your credit cards (and vowed never to carry a balance on them again) you’ll need to start investing your money.

While investing in a 401k is a great option you’re also going to need to look into alternative investing options that allow you to withdraw your money before the normal retirement age. It might be worth it to set up a meeting with a financial advisor to see what investing strategy will best suit your needs.

Different investments will be ideal for different personalities. Also, a CPA and financial advisor can help you decide which accounts to setup so that you can save the most on taxes.

Earn More Money

If you have no money left over to invest after paying your bills you need to spend a good amount of time reducing your expenses.

In addition to whittling down on the budget you can also earn extra money. Here’s how to do it.

Stay Smart but Consistent

Getting to that place of early retirement is going to take you 10+ years of working hard, keeping your expenses low, and investing your money. Don’t worry, you can still have fun but you need to learn how to do it without spending a ton of money.

Alexa Mason
Alexa Mason

Alexa Mason is a freelance writer and wanna be internet entrepreneur. She is also a newly single mom to two beautiful little girls. She chronicles her journey as a single mom trying to make it big at www.singlemomsincome.com.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors’. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone’s responsibility to ensure all posts and/or questions are answered.

Subscribe
Login
Notify of

0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter
  • YouTube

Editor’s Picks

  • 8 best cryptocurrency exchanges ranked

    8 Best Cryptocurrency Exchanges Ranked For 2023

  • crypto savings accounts

    6 Best Crypto Savings Accounts For 2023

  • Cryptocurrency Bonus Offers

    10 Best Crypto Promotional And Bonus Offers

  • best crypto wallets

    Best Crypto Wallets For 2023 (Software And Hardware Options)

  • Best Portfolio Trackers For Cryptocurrency And Stocks

    6 Best Portfolio Trackers For Cryptocurrency And Stocks

  • best tax software for crypto and NFT traders

    Best Tax Software For Crypto And NFT Traders In 2023

Popular Posts

  • proof of work vs. proof of stake vs. proof of history

    Proof Of Work vs. Proof Of Stake vs. Proof Of History

  • Why I Bought An NFT

    Why I Bought An NFT [And 5 Reasons You Should Too]

  • My Dogecoin Experiment: What I Learned From Investing $2,000 In DOGE

  • common crypto and nft scams

    Most Common Crypto And NFT Scams (And How To Avoid Them)

  • Bookkeeping and Accounting for Crypto and NFTs

    Bookkeeping And Accounting For Crypto And NFTs

  • what is a 51% attack

    What Is A 51% Attack? (And How Is That Game Over For Crypto?)

  • what is staking crypto

    What Is Staking And How Can You Make Money With Your Crypto?

  • what are veefriends

    What Are VeeFriends And Are They Worth It?

  • how to file a complaint against crypto exchanges

    How To File A Complaint Against A Crypto Exchange [Crypto Regulators]

Footer

Pages

  • Best Cryptocurrency Wallets
  • Best Cryptocurrency Exchanges

Categories

  • Cryptocurrency
  • DeFi
  • NFT
  • Personal Finance

About

  • About The Cult Of Money
  • Contact
  • How We Make Money
  • Advertise With Us
  • Facebook
  • Instagram
  • Pinterest
  • RSS
  • Twitter

Copyright © 2023 | Cult of Money | Privacy Policy | Terms of Service

wpDiscuz