Cutting Expenses

retirement signWhile most people only dream about retiring at 50, there are people out there that turn this dream into a reality. What is their secret? Did they win the lottery? Rob an armored car? Print counterfeit money? While there may be a few people that did do those things, the reality is that most retire at 50 by following 3 simple pieces of advice.

How To Retire At 50 In 3 Steps

Step 1: Save More – A Lot More

Conventional thinking says that if you want to retire by 65, you need to put away about 10-15% of your income. If you want to retire at 50, you need to save more than this, to the tune of 40% or more. Why so much? First, you are going to need money to live on for a longer period of time while not earning an income. Secondly, you have to make up for the lost years that you won’t be contributing or saving to a retirement plan while you work – namely those last 15 years or so. With the power of compound interest, those last 15 years of saving really add up.

So how do you save 40% or more of your income? There are a few steps you can take:

Focus mainly on windfalls: If you get a tax refund, you need to invest all of it. Same goes for any bonuses you get at work. These chunks of money really make a huge difference in the long run. For example, if you are 35 and receive a $3,000 tax refund each year, investing that and earning 8% annually brings the investment value to close to $88,000 when you are 50.

If you get a bonus each year from work for $2,000 and invest that every year for 15 years earning you 8% annually, you have another $58,000. That’s close to $150,000 you have without really changing your lifestyle!
[Continue Reading…]

14 comments

round table

The Round Table – September 28, 2014

Welcome to The Round Table! Lots of things happening in my world right now. I’ll go into detail on many of them in an upcoming post, but for now let’s just say my awesome experience as a landlord just hit a big bump in the road. No big worries though at this point as I have options. In addition to that, I spent some quality time doing house projects. I got a good amount of things updated/remodeled, but the list […]Read the full article...

personal budgeting tips

Learning How To Budget

No matter what income bracket you fall under, we must all learn how to budget our money. For those who are facing crippling debts or simply want to build their savings, learning how to budget will help you control where your money goes and make you aware of your spending habits. Learning how to control your expenditures is important for both your financial and mental well-being. Below are a few strategies provided by Simple Living Australia that will help you […]Read the full article...

newlywed money

Tips For Newlyweds To Stay Out of Debt

Getting married is easy; staying married is where the work really comes in. It’s important that both partners work towards one goal, especially when it comes to money. When you plan your finances, there might be issues encountered along the way that can make or break you. But it’s better to map things out while you’re both working on the new relationship, then later on when it might be too late. Here are a few tips for newlyweds to stay […]Read the full article...

fall trees

Carnival of MoneyPros – Feels Like Fall Edition

Welcome to this week’s edition of the Carnival of MoneyPros! This week’s edition is called ‘Feels Like Fall’ because fall is definitely in the air here in the Northeast. Fall is my favorite season and I love the cool, crisp nights that it brings. It’s also a smart time to do any last minute home projects outside before the weather turns too cold. I’m currently working on a host of household projects as we speak. But that that said, during […]Read the full article...

fix your car

Is Auto Insurance Really Worth It? (Infographic)

You may believe that auto insurance is not worth the cost. You are a good driver, so why should you pay for something that hasn’t happened? Even excellent drivers can find themselves in an accident. Anyone can work an extra long, exhausting day and tap another parked car in the office parking lot. Anyone can get caught up with radio dials or personal worries and accidentally rear-end a driver who stops short. Anyone can make a right hand turn without […]Read the full article...

books

Financial Education Starts With You – ebook Giveaway

Are you someone looking to get ahead financially? Do you want to learn how to invest or pay off debt? Maybe learn new ways to save money? Maybe you want to know how to live overseas or just live a life where money is never an issue? Whatever you financial goals and dreams are, they all begin with you. You need to take the time to educate yourself to have a strong financial foundation. After all, nothing great can be […]Read the full article...

round table

The Round Table – September 7, 2014

It’s football time!!! So excited to have football back. I love watching the games on Sundays and just hanging out with friends and family watching. I’m still fairly busy as I pointed out in my end of summer update post. I am checking things off my list however and slowly getting things to a more manageable level. I am also gearing up for my house project event I touched on in my update post above. Of course, I did have […]Read the full article...

car lease

Options When Financing A New Car

Financing a new car or van used to be a straightforward affair. You’d either pay in cash, with a credit card or loan, or take the car manufacturer’s finance option. Nowadays, though, there are far more options available, particularly with some manufacturers who are well aware of the financial pressures affecting many people in Britain today. Option Outside of Traditional Financing Fiat, for example, has a number of flexible finance options available. And it’s not just their cars, either. If […]Read the full article...

student debt

5 Online Degrees That Will Give You a Head Start on Student Debt

It’s a fact of life that furthering your education often times comes with a hefty price: student debt. Whether or not you’re left with debt after graduation depends upon a few factors. The biggest factors in student debt are the cost of tuition, the length of the degree program, and the degree program itself. Tuition cost will vary per school and per program type. With the right degree, though, paying off student debt will take no time at all to complete. […]Read the full article...