Bigger Pockets Money: How to Get to Early Retirement Even Faster

In times of economic uncertainty, those with a financial plan tend to come out ahead. And in a world where asset prices are dropping, it may seem like retirement is off the table. However, retirement, and even early retirement can be achieved.

Typically, those looking to retire early look to earn a high salary for a few years, pay down debt, and rapidly grow an investment portfolio. But those with lower earnings can also find how to reach their financial goals.

To retire early takes tremendous discipline and willpower. And determining mathematically exactly what someone needs to make in monthly passive income to truly retire early.

But with a few simple strategies, nearly anyone can target an early retirement, even while markets are down now.

The first strategy is to max out tax-deferred accounts like a 401(k) plan and IRA. 401(k) plans also sometimes have employer matching incentives, so that makes for a good place for investors to max out first.

Both a 401(k) and IRA also reduce taxable income, which helps someone keep more of what they’ve earned overall.

The next strategy is to carefully watching spending. It’s easy to get caught up in lifestyle creep, where raises and higher salaries lead to higher spending overall.

Having excess money each month means an opportunity to invest in a regular investment account. That will allow for a further compounding of stock market returns over time.

To hear a full walkthrough of how to budget for an early retirement, click here.