For those of you wondering if it’s possible to retire before 30, the answer is YES. It’s definitely possible. However, you need to follow the steps carefully and make early retirement a priority. You need to direct all your actions consistently to achieve your goals.

You should aim for a high income and modest lifestyle. At least, save your earnings every year and live simply or below your income capacity.

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1. How much do you need to save for retirement?
To determine this, you can try this formula: take your annual spending and multiply it by somewhere between 20 and 50. The large range allows you determine how much you need to save, based on your particular lifestyle. The higher this number is, the safer your investments will be. Thus, you’ll have less of a chance running out of money during your retirement.

2. Retirement Goal
Setting a specific amount for retirement is what you need. You need to save money so you can retire successfully and comfortably. Sit down and choose a rough amount, higher than you might need, and work towards that goal.

3. Seek advice from a Financial Planner
A financial planner will help you figure out your investments and give you advice on how to work towards your retirement goals. Asset allocations are how you distribute your savings among different types of investments. You can invest in stock funds, bond funds, and stable value or money market investments.

While you are in your 20s and 30s, you should be investing aggressively. Good thing about making investments early on is the longer recovery period for risky investments.

4. Employer’s retirement plan
Most companies have retirement plan where you need to make a contribution. Once you move up the career ladder, your contribution gets higher.

5. Stay out of debt
Having multiple sources of debt will just accumulate. Try to stay out of it as much as possible and consolidate them into one account. Pay off as much as possible every month until the debt is paid off.

6. Get other forms of income
Focus on reaching your retirement goal faster by doing freelance work outside of your day job. Think about your skills or abilities that you can channel into extra forms of income. This will all add up to your savings.

7. Involve your partner in your retirement plan
If you are in a long-term relationship, you need to be involving your partner in your plan. You two should work together and agree to lifestyle changes to help you achieve your goals.

8. Reduce your monthly expenses
Try cutting down on expenses like internet costs, cell phone, and food costs. These can add up to your savings account in the future. Stack savings on top of another to add a large amount of money saved. Eliminate your desire for luxurious items.

9. Consider biking or walking
Your car will cost you a lot of expenses. You need maintenance and insurance. Instead, you can invest in a good bike and it will provide you with transportation without added costs.

10. Avoid eating out
Reduce the amount of money you spend on food by cooking your own meals and only eating out once or twice a year. Make grocery shopping a part of your routine. Do not buy unnecessary items or purchases.

11. DIY lifestyle
Other people would call others for services than do it on their own. This is costly and unnecessary. Be your own handyman and avoid paying for these services.

12. Invest in stocks and bonds
As mentioned above, you should already be investing heavily in stocks and bonds. Stocks are riskier investments, and are better as long-term investments. Then, convert your investments into bonds, which are less volatile but don’t have the potential to be high-yield like stocks.

13. Hard assets
Hard assets are literal goods you cannot break down, or liquidate (gold or house), in order to sell. Thus, it can be tricky to invest in hard assets because of its nature.

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