Nowadays, many Millenials are thinking about early retirement. When we say “early retirement” — we do not define it as a moment when you stop working forever, but simply the moment when you no longer have to work for a salary. Naturally, you can choose to keep working, especially if it is something you enjoy.

Now, let’s see how you can retire early.

Saving is an essential part of the early retirement plan. Even if you have the greatest investment strategy in the world that returns 10 percent more a year than any other strategy, you will not see a significant impact if you only have $10 in savings to put them to work.

To save big, start with your two most significant items — housing and food. Focus on big items which can bring you 20 to 30 percent savings rate, as the rest of your progress will likely be made up of small enhancements such as canceling underused memberships, avoiding fees for being late, etc.

The suggestion here is to start with small changes, which can lead you to the bigger ones eventually. Choose the most suitable strategy that will work best for you.

Again — it’s quite clear — if you make more money, you can save and invest more, which can help you reach your goal sooner.

Boosting your income could come in various forms. It can be anything from asking for a raise or getting a promotion, to starting a side hustle or beginning to work extra hours.

Look up some good negotiation tactics on Youtube to get a raise more easily or start an e-commerce business which does not require huge investments, and it can bring you a lot of money. Freelancing is also a good option which could allow you to charge higher rates for the work you do.

Dividing your earning goals to smaller daily targets can make it easier for you to achieve it. It’s a bit easier to find a way to earn $100 per day than $3000 per month.

Once you have increased your savings rate as well as your income, you can concentrate on growing your money.

After all, money-saving alone will not get you rich, but investing might. At some point, your money pile will grow to a size where focusing on building your capital will have a much higher material impact on your overall wealth than the further cuts on your spending. Let’s see how you can put your money to work for you.

When you buy stocks, you are purchasing a share in a real company. As the company makes profits and creates more value for its customers — the price of the stock can increase. It can likewise go down if the demand for the stock goes down. Shares (stocks) are traded all across the world on a large number of different exchanges.

There are four traditional ways to buy stocks:

Naturally, there are winners, and there are losers. Some people became millionaires, and some lost more than they could afford. It all depends on your knowledge and your determination to make money while trading.

The same goes for cryptocurrencies; the only difference is that they are way more volatile than traditional stocks. We are talking about ups and downs of even 100 percent or more on a daily basis (naturally, not in all markets, just those small enough to be easily influenced by any larger purchase). The cryptocurrencies offer high returns, but those are followed by higher risks too. So choose wisely.

Investing in real estate is often seen as an excellent way for early retirement. You can actually reach early retirement decades earlier simply due to the fact that real estate generates consistent cash flow, and you hold an asset that continues to grow. And you do not need a lot of money to get into it. You can use a bank mortgage to buy a real estate, making it happen with other people’s money basically.

There are three principal ways to invest in real estate:

With any real estate investment, you are simply expecting to make money when the value of a property you own goes up. The value is based, like with any other investment, on supply and demand. The higher the demand and lower the supply, the more money you could make by selling it.

One new way to make a remarkably high passive income is investing in cryptocurrency arbitrage platforms.

Basically, you would be investing in companies that buy low, sell high due to the price fluctuation in different markets. Since markets move at a different pace, often excellent arbitrage opportunities occur. For example, the price of Bitcoin can go from $11,000 to $10,000 on all major European highly-liquid exchanges. But, smaller Korean exchanges are not so fast when it comes to following the market movement, so the price there is still $11,000. This creates an opportunity to buy Bitcoin for $10,000 on European exchange and sell it on Korean for $11,000 and make a 10 percent profit.

Naturally, like with any investment — make sure to invest in regulated companies that can guarantee a constant stream of income to you. Arbismart brings between 0.1 and 1 percent of daily profits to the investors (depending on the amount invested). This means that it is possible to have an exceptionally high return on investment each month.

Early retirement is something you can achieve in just a couple of years if you focus and build your savings account, which then you can use to invest and make money work for you.

The more you invest every day, the quicker you will be able to retire early. Every dollar you invest now could help you reach early retirement sooner in the future.

If you have any questions, feel free to reach out at any time. We are here for you. Let’s talk about your early retirement and how we can help you make a passive income without breaking a sweat.