3 Things To Focus On If You Want To Retire Early

The lower your liability side of the equation, the more fun and freedom and choices you'll have in retirement. So guys, if you want to retire early, there's really three things that you need to be focused on. Now on this video, I'm going to give you those three things. I'm going to say what I think is probably the most important one for number three. So you want to stick around for that one. Now let's jump right into this video, guys. The very first thing that you should consider if you plan or want to retire early is your In other words, guys, how much are you putting back to your retirement for yourself when you actually retire? You have to be very, very aware of the actual percentage of your money that you're investing in the stock market for long-term growth. So whether that is 4% at your job or 5% at your job, or whether it's 10 or 20 or 30%, that rate of savings is very, very important. It's critical to whether or not you can retire early or not. Now if you're not already doing so, I suggest that you be putting back at least 15% of your money towards the stock market so that you can have money in the future, right? So that money has time to grow, time to get some compound interest. So I suggest you focus very heavily on the rate of savings, the percentage of your money that you're putting back or that you're putting in the stock market for growth. Now some of this obviously is going to depend on your age, right? If you're only 25 years old and you're watching this and you want to retire by the time you're 50 years old, then you've got about 25 years to play around with. Maybe you don't have to put in 20 and 30% of your money because you can put in 10 or 12% and let it grow over a longer stretch of time, although you still want to retire early. Now if you're 40 years old and you're watching this and you plan to retire at the age of 50, you only got 10 years. So the percentage of your earnings that needs to be going towards say the stock market for growth is going to be a lot higher. If you only got 10 years to go and that money only has 10 years to grow before you start to need it, then you need to be putting back 30 and 40% of your money right now. If you're behind, now if you've done well up to this point and now you've got about 5 or 10 years to go and you've been putting money in the stock market for years and years, 20, 30 years and you got about 5 years to go, 10 years to go, you're fine probably. But if you're behind and you're 45 years old or 40 years old and you want to retire in the next 5 years, you have to increase your rate of savings that's going to be put towards the stock market for growth. Remember guys, time is the key. Many people want to retire early but they just can't do it because they don't have enough money because they started too late or they only put a small percentage of money in. And now they're getting down to crunch time, right, 3, 4, 5, 10 years away from an early retirement and they just don't have the money. So the key is you need to be aware early whether or not you're putting 5%, 10%, 20%, 30%. What is the percentage that you're putting of your money towards the stock market for some growth? So that's number one guys, very, very important. And you should be focusing on that if you plan to or want to retire early. Hey guys, smash the like button for me if you're getting anything at all out of this video. Also, please drop a comment below. Let me know another, besides these three, another important thing that a person should be thinking about if they plan to retire early. And also let me know, hey, have you thought about retiring early? Let me know that in the comments below guys. Also share the video with anyone you think might need to hear this message. And also if you're not a subscriber, please consider subscribing to the channel. All right, let's get back to number two. The second thing that you need to focus on if you plan to or want to retire early is increasing the asset side of your net worth equation, right? Increasing your assets that are going up in value. Those things that are increasing in value. You want to increase those and at the same time reduce your liabilities. So you want to bring those assets up and bring those liabilities down. And here's why. Because when you retire, the more assets you have, the more choices you have, the less liabilities and the less debt you have, the more money you're going to have. So ideally you don't want to have any debt when you retire. And the reason is because guys, the less debt you have that's going out to these bill collectors and these credit cards and all these things, the less of that that you have, the more of that you can avoid, the more money that you'll have to spend on the things that you need in retirement and the things you want in retirement, right? Maybe you want to travel. Maybe you want to take up a hobby that's sort of expensive or costs a fair amount of money. Or maybe you just want to give and help more and more people. Whatever it is, the less debt, the less liabilities you have, the more you can do it. Everything is made easier for you in retirement, the less debt you have. And so the lower your liability side of the equation, the more fun and freedom and choices you'll have in retirement. So if you want to retire early, you've got to be looking at where am I at in terms of my liabilities? Where am I at in terms of my debt? Do I have any debt? How can I get rid of as much debt as possible before I retire? Also, how can I up my assets so that if I ever want to sell an asset, I can sell it or I'll at least have the choice of doing what I want to do with my assets in retirement, right? Listen, if you retire with say three pieces of real estate, your own home and two rental properties and those things are paid off or pretty much paid off, then guess what? You have a lot of options. You can do a lot of things. Just imagine if you had $500,000 in stocks when you retire and you had $400,000 worth of real estate when you retire and you had no debt, you had no liabilities. Now you've got a ton of wonderful options you could do with that potential $900,000 net worth, right? So you want to increase those assets, reduce those liabilities, get rid of that debt as much as possible. If you plan to retire early, you've got to focus on that. So that's very important guys. If you plan to retire early, you got to get your ducks in a row and this is how you get your financial ducks in a row. So let's go over to number three. Now number three is very, very important. Most people that are getting ready to retire or want to retire early, they sort of forget about number three, but you, you really got to put this at the top because really it's your reason for retiring early. So the third thing that you want to focus on if you plan to retire early is you have to focus on your plan. And when I say your plan, I'm saying your plan to get to retirement. But more importantly, what is your plan for when you do retire, right? What is your strategy to get there? You want to have a strategy, right? To actually reach an early retirement, right? You got to look at your numbers and see where you are. What are your monthly expenses? Do you make and earn enough money every single month if you retire to live the type of life that you want to live, to do the types of things that you want to do? That's your strategy. That's the first piece of this plan. But the second piece of the plan is what are you going to do after retirement? What are your plans when you get done working or doing whatever you're doing that you're retiring from? What's next? What is your second act in life? Who are you going to impact when you retire? What type of impact are you going to have on the world when you retire? How are you going to stay busy, right? How are you going to scratch that normal human itch that says, I need to be productive. I need to be active and I need to be fulfilled in whatever I'm doing, right? Because for a lot of people, they get that through their job, right? And they work a job for 10, 15, 20, 30 years, 40 years, and next thing you know, they don't have anything to do. They don't have anything. They wake up in the morning, retired at the age of 50, 55, 60, maybe 45 if they're retiring really early, right? And they have nothing to do. They have no impact to go make on the world. And sometimes for some people, they can feel a little bit lost, right? So you want to plan for that because it will happen. You can only sit around the house and do nothing for so long, right? Two, three, four months. You talk to anybody that's retired after a few months, they're tired of not doing nothing because it's natural for us as human beings to be productive, to be active. So today, guys, right now, start thinking about what your plan is for how to get to an early retirement and for what you plan to do when you retire. So just to recap, the three things that you need to be focused on right now if you want to retire early. Number one, increase your investments in the stock market. In other words, your percentage, figure out what your percentage is, 10%, 5%, 20%, whatever that is, and try to increase it if you can. So you want to enjoy some of the growth of compound interest. Now number two again was to increase your assets, things going up in value and get rid of your debt and get rid of your liabilities as much as possible before you retire. Now number three was your plans, right? Your plan and strategy to get to an early retirement and your plan and strategy for once you retire, right? Hey guys, check out a few of the videos here for more things to consider if you plan on retiring early. Thanks for watching this video and please stay locked into this channel for more videos to help you reach your financial freedom. The best person to take care of the old you is the young you. Guys, do me a favor, take care of yourself and always take care of other people. Until the next video, peace.