We’ve studied many early retirees over the years. Through this studying, we came up with the top 5 traits that we noticed in these early retirees:
- Each early retiree thought seriously about how they wanted to live their lives. They didn’t just blindly copy everyone else. They questioned the typical path to retirement of working for forty plus years hoping to finally retire in their sixties. They decided to walk a different path and used their existing retirement savings to create income to live off of so they could retire early.
- Each early retiree valued their time over money. They all understood that trading time for money was a bad deal in the long run, as our time is severely limited. They flipped this plan around and used their money to buy time.
- Each early retiree created a financial plan around unearned income. This unearned income came from income producing investments. The level of investment income was designed to help them live their ideal life. Each early retiree used different income producing assets but accomplished the same goal.
- Depending on how you invest your retirement savings, you may not need 7 figures to retire early. Some early retirees that we studied retired in their 30s with only $500,000 to $600,000 in today’s dollars. You may actually be able to retire with less saved, as Robert Kiyosaki appears to have done with rental real estate.
- Be active in retirement. All three early retirees wrote books sharing their experiences. For example, after retiring early, Joe Dominguez, author of “Your Money Your Life” taught classes on how to achieve financial freedom. Paul Terhorst, author of “Cashing in on the American Dream – How to Retire at 35”, continues to travel the world touring dozens of countries with his wife.
The process these early retirees all seemed to follow is different than the mainstream advice we’ve all been taught. They didn’t save for decades hoping to be able to retire in their 60s. Instead, they focused on creating a large monthly passive income stream. This income stream completely replaced their salaries eliminating their need to work for money. This shift in focus is extremely important because you can reach your main financial goal within a few years.
For a deeper dive with real examples, download our free report: How to Retire Early.
Vince & Mike