Is Early Retirement possible with a Low-Income Job?

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Have you caught yourself thinking about your retirement just to feel defeated because it seems too far away? You are not alone, many people dream of early retirement, wanting to spend their days as they wish, instead of following the traditional 9 to 5 path, but it seems impossible without a 150K job, right? In this article, we want to cover whether early retirement is possible with a low-income job, or not!

The significant movement behind the early retirement community

Have you heard of FIRE? No, we don’t talk about the elements, but rather the vast FIRE community that’s constantly expanding. FIRE stands for “Financial Independence” (FI) and “Retiring early” “RE”; therefore, the goal is to reach financial freedom to be able to retire early. If you look around in this community, you will find many people with high-paying jobs, especially in the tech industry. No surprise that it can be disheartening looking at your finances and comparing yourself to these people. BUT: The good news is that it is also possible to retire early if you are low income. 

Can I retire early with a low-income job?

Yes! Of course, it is sometimes easier to retire early when you earn 150K and more, but with the right mindset and our tips, it is also possible to retire on a lower income.

Focus on lucrative investments

Trading and investing is a crucial part when it comes to retiring early. Not only should you start as early as possible, but you have to choose suitable investments. Since you don’t want to trade regularly but rather buy into the market long-term, you should look for an easily navigable broker, which offers all the assets you wish to invest in. Also, don’t forget to read the reviews of the brokers you are interested in, so you can get a better understanding if these options are right for you. For example, if you are interested in the Broker Olymp Trade, read the reviews and learn from current and former customers. Here you can find more information about Olymp Trade.

Have the money mindset

If you look at money and feel overwhelmed and anxious, you have to work at your money mindset. Sure, you want to retire early on a lower income, which means you have to be more conscious about your spendings, but this doesn’t mean you can’t enjoy your life and spend money. Would you rather retire earlier, but stay at home 24/7 in your 20s ad 30s just to save money, or would you like to enjoy this time but retire a few years later? 

How much money do you save?

More important than your income is your savings rate. The higher your savings rate, the better. If you don’t have any debt that you have to cover, we recommend you automatically transfer money to your brokerage month by month, so you don’t even see the money. This way, you won’t forget to save money.

Spice up your income with side hustles

Do you feel like your income is too low and you can’t save enough money each month? How about starting some side hustles? These are additional “jobs” or ways to earn money and be able to have a higher savings rate. This could be driving for Uber or Lyft in your free time, or renting out a room in your house. You could also start working as a freelancer next to your regular job.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.