4 Ways To Retire By 40

beautiful young woman in a blue light dress on a yacht

We all dream of retirement. Relaxing in a beachside property (or a tiny apartment because social security/insurance has finally crapped the bed), getting older with our significant other (or by ourselves because we were so broke from paying student loans that no other human would even gaze upon your desperation) and enjoying the fruits of our labor (go back and see “crap the bed” section of the intro). Even considering all the terrifying ramifications of living on an extremely restricted and fixed income during the twilight of your life, some people claim that you can retire at the ripe old age of 40…lets take a look how they claim to be able to do it.

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Mr. Money Mustache

This outrageously cheap bastard is an engineer that managed to retire at the advanced again of 30…and how did he do it? By being an outrageously, egregiously cheap bastard; like not using A/C in Phoenix Arizona (average summer temp of 86.7 F), by counting the seconds of the day…the seconds and trying to keep the cost of meals at around $1. Although cheap, he is a pretty entertaining and content-rich writer. Yes, he maintains an extremely popular blog…so is he really retired or just doing something he likes? I’ve found the hole in your plan Mr. Mustache.

Thomas Frank

Thomas is a 24-year-old that predicts he will be able to retire in his 40s, by safely investing his money and having enough income to support his future wife and kids. Like I said he’s still 24, but thinking like he’s 40, I mean he wants to retire by the time he’s 40. When Frank was in college, he managed to create an online business (which was a blog dedicated to college life and success), that paid off the $15,000 of student debt he had acquired during his education.

Thomas then started various safe savings and retirement funds. He hopes by the time he is 40 to have put away $900,000 US dollars. At the moment, he has about $11,500 in a taxable account and $19,000 in a SIMPLE IRA. He says that as long as he meets his savings goals (of $1.000 a month to the taxable account) he doesn’t heavily regulate his spending.

Join The Military

If you’re above the age of 35, you aren’t eligible for this option. But joining the military could be a good choice. You’ll probably need to go to college and enlist as an officer straight or soon after graduating to have any chance of becoming a senior officer who get paid handsomely when they retire in their 40s. It’s a long shot and depends on a lot of factors, but it’s something if your still young, I guess.

Do The Math

One thing that shows up consistently with people that plan on an early retirement is that they have their plan set out down to the very last detail. Factoring in health care, inflation, cost of living and financial obligations. It’s not an easy task as this article recommends that you go back three whole years to figure out your average expenses. Then from there you also need to figure out what kind of lifestyle you’d like to live, a meager, miserly one or a globetrotting, champagne sipping one.

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Do you have any other recommendations on how to retire at 40 let us know in the comment section below.