There are certain things that I would never give up. I’m talking about things like a delicious In-N-Out burger or my Netflix subscription. Okay, maybe I would give up Netflix….

There are certain things that I would never give up. I’m talking about things like a delicious In-N-Out burger or my Netflix subscription. Okay, maybe I would give up Netflix. I mean, something’s gotta be up with the streaming service if it lost almost a million subscribers in the second quarter of 2022 . However, when it comes to financial independence, you often hear people say that you have to give up certain things. And this is especially true if you’re trying to retire early . After all, these are the same people saving something like 97% of their income. Obviously, that means it’s not in their budget to spend money on going out to eat or streaming services.

But what if I told you that you can still retire early, specifically in your 30s, without sacrificing everything? While it may sound too good to be true, it’s definitely possible with a bit of patience and dedication. Be clear about your future plans — and stick to them

Your first step? Establishing an honest estimate of your needs. But how exactly can you figure out how big your nest egg should be? Well, you need to take into the following three factors. Longevity.

News flash. We’re living longer.

As of 2022, the average life expectancy in the U.S. is 79.05 years . As such, if you’re planning on retiring at 35, you need to make sure that you can stretch your income for the next 35 years. Lifestyle.

The next step is determining the lifestyle you would like to enjoy after leaving your job. To start, ask yourself the following questions after age 30: Would you still be interested in pursuing your hobbies and passions?

Are you planning to travel, buy the latest gadgets, take classes, or do you think you’d like to do all these things?

How much mortgage or rent are you willing to pay, and what kind of insurance protection do you want?

Obviously, depending on your lifestyle vision, you will need to save a certain amount of money. The actual numbers.

By the time you retire, Citizens Bank and Fidelity recommend saving 10 to 12 times your annual income. In other words, earning $100,000 per year, you should set aside $1 million to $1.2 million for retirement. However, your withdrawal rate may determine your goal number.

Using your target withdrawal rate as a guide, divide your retirement spending by your yearly retirement spending. For example, if you plan to spend $40,000 after taxes every year and withdraw 2%, you would need $2 million ($40,000/.02) to retire. Obviously, inflation needs to be adjusted annually to the number you come up with.

Creating a pre-retirement and post-retirement budget makes sense. A budget before retirement will keep you on track to reach your savings goal. But, a budget after retirement can help prevent you from running out of cash.

Regarding budgeting, I suggest organizing it by needs and wants. Groceries, for instance, are essential. But, a delicious burger every week is a need. And although it may also be more necessary than desirable, make sure you have an emergency fund. Make a lifestyle change

Retiring at 35 (Without Giving up Everything) Controlling your expenses is the key to making changes, Steve Adcock , who achieved financial independence by 35 told me. “That means it’s like never going out to eat or very rarely. I think we gave ourselves like 50 bucks a month or something to go out to eat. I love going out to eat,” he adds. “For me, that was like the biggest, I guess, drawback or negative or sacrifice, or however you want to call it, to this whole business of retiring early.”

“But we tracked our expenses so closely, that for a couple of years, we could have told you how much we spent on sweet potatoes, every single year.” Not just that, but everything else as well. It is not necessary to be as detailed as that. “But I would say that’s probably not required for everybody.”

“What is required is knowing where you’re spending money,” Steve continues. Why? “Because it is impossible to cut your expenses if you have no idea where your money’s going anyway. How to keep your spending in check.

The first step is so difficult, Steve warns. “Because you have to go through your credit card […]

source Retiring at 35 (Without Giving up Everything)

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