Retirement at 40, is it possible? – For me, yes. I think it’s possible. Although to retire early, ideally you want to get started early. The same as compounding interest, the younger you start saving. The more money you have in the future.
How much do I need in order to retire at 40? I estimate savings of at least £500,000 (realistically though I’d like this to be closer to £1,000,000)
Now this number is a lot, don’t get me wrong. I’m currently 35 years old as I type this Blog entry, however I like a challenge and I’m still optimistic, if it doesn’t work out, then I’ll have built up savings. So it’s a win-win regardless
The reason I want to retire at 40? – “Life’s too short”, you’ve heard those words many times before, and it’s true. Once you’re gone, you’re gone. So I’d rather focus my time on enjoying it and focussing towards my interests. These include Medicine, Robotics and Energy.
As a person, I’d like to do something to leave a mark on this world, which has a greater impact. Working a 9-5 job isn’t doing it though, this is the reason why I’m aiming for a retirement goal. I care about the bigger picture and being happy. Reaching this point would allow me to achieve this goal
Based on a retirement figure of around £1,000,000, I’d need to earn somewhere in the region of £600 per day!
Now, I’m not thinking about this number, quite frankly it’s absurd to think about.
I’m thinking of another way, via “Passive Income” – basically making money without me working for it (so I make money whether I eat, sleep or shit.
For reference it’s about £26 per hour passive income I need in order to get the magic number based on my current age. Which is why I said start early, if I started working on retirement when I was 20, I’d only need a passive income of around £7 per hour!
Anyhoo. My thoughts towards retirement at 40, and what I need to do. Or currently are doing to achieve them
- Reduce outgoing expenditure (paying off debts / mortgage) and saving money in general
- Investments (I’m looking into things like Dividends, and REIT) to help pay out dividends as passive income
- Stocks and Shares (this is more long term investments)
- Increasing my passive earnings (writing books, training guides, writing more content for my website)
- Earning more money (whether this be matched betting, ebay, etc)
I don’t earn much passively, but I have my mind focussed on a goal now which is something I’m good at. Quite frankly the thought of leaving any job at 40 appeals to me. I’ve always said if I could afford to not work for a living I’d work with animals
Anyway, that’s my short rant for now. I’d love to hear ideas of how you think about passive income, or what works for you.