How to retire in 10 years (or less). via CNBCMakeIt
Before we begin, let me introduce myself so you know I haven't just fallen off the turnip truck. I reached financial independence in my 40s and eventually retired last year at 52.
As you might imagine, the more you do of these three, the faster you'll get to financial independence. But"do more" as guidance is a bit vague and doesn't provide a clear path to retirement. If you have a budget now , setting an estimate should be easy. Developing my retirement budget was a breeze because I had over 20 years of spending data in Quicken. I knew exactly what our family required in every category. Yours will be equally simple if you've been keeping a budget for at least a few years.
As you become more familiar with it and see how the money is flowing out, you'll be able to identify steps to maximize your savings rate. Investing can be difficult if you have a short time horizon, but as long as you have 10-15 years, I'd start investing with low cost, US stock-based index funds to maximize growth.Get as much money as you can working as fast as you can and soon your money will be helping you achieve financial independence.Having a side hustle can help your finances in a couple ways. First, having an extra income will allow you to earn more and thus save more in a shorter period of time.
During this entire process, debt will be an absolute killer. Yes, you may already have some debt which will impact your numbers for sure, but don't make it harder on yourself by adding more. Work at your job to get top raises. Follow the steps noted above and you should be able to earn 5 percent raises rather easily . We'll be conservative and say you earn 5 percent average raises and save all the increases.
If you add the side hustle into the mix, after 10 years you'll have over $550,000 saved/invested and a side business churning off $18,000 per year.BTW, if you don't want to or can't develop a side hustle, you could down-shift to a part-time job that earns you $18,000 per year. That shouldn't be too hard for someone with the career skills you've developed over the past decade.
4. Your side business could easily earn more than $18,000 per year. Even if you just earn $100 a week, that gets you to $5,200 as a start, well ahead of the $4,000 we suggested. And it's likely it won't take you three years to get to this level.
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