Do you need a 6-figure income to retire early? No — here are 5 money-growing moves for the under-$100K set

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Do you think that retirement early is far because you do not make a six -digit salary? It takes careful planning and discipline, but that is still possible.

About 60 % of American retirees entered their golden years before they reached 65 years, with average retirement age of 62, according to the retirement confidence survey in Greenwald Research 2025.

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However, only one in 10 American retirees retired before they were 55 years old and about a quarter of them before they were 60 years old. If you want to join this regiment but they do not have a high income, you will need to make some smart money movements (and some sacrifices).

In general, early retirement means less spending, providing more, and investing wisely and finding ways to reduce your living expenses in retirement. We all know this, but what are some practical steps that you can take today to get to the road to retirement early?

Industrial studies have shown that professional financial advice can add up to 5.1 % to portfolio revenues. But consultants can also help you navigate in complex topics such as tax efficiency, retirement timing, choose the right investment for your goals and take risks. They can help you stay on the right track and set your plan if necessary.

The budget may seem very boring so that it is not “smart”, but it is a major financial tool. The budget can help you understand your current money, curb your spending and form your financial plan. Tracking your expenses for your budget can reveal new possibilities to provide.

But you will need two budgets. After tracking your current budget for a few months, you can use it to estimate your retirement budget (what you will need to live as soon as you retire). This will help determine the amount you will need to keep retirement early. You will need to review this pension budget periodically and make adjustments as needed.

** Read more: No millions? No problem. With less than 10 dollars, here is how to reach the Real Estate Fund for $ 1 billion of various assets is usually available only for the main players.

For early retirement, you may need to provide more than 15 % that is often suggested. If you want to join financial independence, early retirement (fire) and retirement in the thirties or forties of the age, you may need to save up to 75 % of your income.

Regardless of the retirement age you aim, you will need discipline to reach your savings goals – and one way to keep this discipline is to automate your savings. There is an easy way to do this, which is to make 401 (K) contributions directly from your salary, but you can also prepare deposits directly in a high account and benefits or an investment account.

There are many applications that can help you to automate your savings, including some that will link your purchases and put the difference in saving or investing. Remember to increase the automatic amount if you get an increase.

If you cut regular expenses such as subscription or membership to save money, add this amount to your automatic payments.

It will be difficult to retire early if you have a great balance on a credit card or other high -interest debts. The most SATED SATED step is not tolerance of a balance – but life occurs, so if you have a balance, it must be pushing down the first financial priority (along with the construction of an emergency box).

A 20 % interest credit card provides 20 % revenue, so it may be easy to do if you are considering it as an investment.

Although you want to pay the high interest debts as quickly as possible, you may want to consult with your advisor before speeding up the mortgage payments. If your mortgage rate is less than the expected investment return, you may want to invest money instead, but this decision will depend on your circumstances and preferences.

Your biggest balance is likely to be your future profit, so you can retire early you will want to increase this original to the maximum.

Although you can think about side bustle or second job, only look at your current job and evaluate whether your time and energy have been better spent on developing your career to increase future income. Consider whether you can make more additional sales, increase or promotion – or if it makes sense to take a side disturb.

Early retirement takes planning and dedication-but it is not necessarily six numbers.

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This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.

2025-07-05 10:03:00

0 3 minutes read