Want to Retire Before 40? Millennials, Do These 7 Things Now

Many people wish they had the chance to retire early and have more time to enjoy life. If you’re a millennial, you might feel the time crunch, but believe it or not, you could still set yourself up for success.

We’re told it’s best to start planning and saving from a young age, but not everybody knows how or has the opportunity to. Instead of believing you can’t save enough to retire early because you’ve started too late, think positively and take a few good steps in the right direction.

We’ve compiled a list of things you can do to get the ball moving today.

1. Pay off Debts

Nothing is going to tank your ability to save more money quickly than drowning in debt. Even if it’s just credit cards, pay off your obligations.

Then, since that money was already going out the door to begin with, put the payments toward your retirement plan of choice. That will serve two purposes: it’ll increase your credit score (which is always good) and it will boost your retirement savings, cutting down the number of years you have to wait if you so choose.

2. Up Your Contributions

Your retirement fund isn’t going to grow if you don’t water it. And that means if you’re looking to call it quits a few years earlier than expected, you need to water it more.

Up your contributions. Hit your maxes where possible, and don’t forget one very valuable asset: your employer contributions. If they match up to a certain percentage, make sure you hit that marker. It’s literally free money and it will make reaching your financial goals that much easier.

3. Get a Side Gig

Do you feel like you’re falling short of your retirement plans and need a way to build up your funds? Get a side gig or two. There are many side jobs you can even do from the comfort of your own home. Some can even earn you passive income.

Then, you can take this extra money and put it toward your retirement fund and put it to work for you. Working a bit harder in the meantime will give you the perk of retiring early if you’re smart about it.

4. Invest, Invest, Invest

A good financial planner can help you determine what assets are the best option for your financial goals. Investing helps grow your money at a rate it won’t otherwise.

One of the best things you can do, as well, is to diversify your assets. That is what many financial gurus, including Robert Kiyosaki, say is the key to building wealth.

5. Forsake Today for Tomorrow

Many people who come upon “found” money, a sum they weren’t expecting, tend to blow it. They go on fancy vacations or apply it to existing bills.

Instead of doing this, think of what you can do with the money your “found” funds will build for you. Invest it, and you’ll see that money go much further, including affording you the ability to retire younger than expected if you play your cards right.

6. Increase Your Savings

You might think all of these tips center on saving, and you’d be right. It’s a critical part—short of winning the ever-elusive lottery (seriously don’t count on this, ever)—to reaching your financial goals.

By increasing your savings, even from 10% to 20%, can help move your retirement along that much quicker. The oldest Millennials are still about 20 years away from retirement, but if you want to cut that down to 10 or 15, consider upping your savings rate to as high as 50%. This is where those extra revenue streams will come in handy.

7. Start Now

If you’re serious about retiring early the time to start is now. The sooner you start, if you haven’t already, the sooner you can enter your golden years, sunning on the beach with a mai tai in hand, if that’s your preference.

Even if you’ve already started, chances are you need to boost your efforts a bit and there’s no better time to kick it into high drive.