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Generally, Retirement refers to the period of a person’s life after they have left the workforce. During this period, the retiree withdraws from any type of labor and generally engages in activities for leisure purposes.

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Nevertheless, the term “Retirement” still means something different to just about everyone.T his means that you need to envision what retirement means to you. It could be planning to travel, writing a book, volunteering in various organizations, or starting a nonprofit organization.

When you have thought it through and settled on what you want your retirement to look like, then you can start working towards achieving it.

The general age for retirement is 65; however, you could choose to retire before that period even at 40.

Retiring at 40 sounds appealing, but it takes discipline and sacrifice. In addition, it also depends highly on the kind of lifestyle you are willing to have during your twenties and thirties.

Even though it sounds almost impossible, retiring at 40 is ually possible; it only takes a lot of planning, toughness, and aggressive saving to do it.

If you have set a goal to retire by 40, here are some steps to achieving your goal

Set a Savings Goal

As stated earlier, retirement alone requires saving, however, retiring early at 40 required aggressive savings.

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Early retirees face an exclusive challenge in saving for retirement. If you want to retire at 40, you need to know that you should save more than normal.

Here’s an easy way to save more:

Save 50 Percent of Your Salary or More

Salaries for most individuals peak in their 40s; therefore, if you plan to retire at 40, you should save at least 50% of your salary long before you clock 40.

If you choose not to do this, you’ll be handicapping your savings by not contributing to your retirement accounts during your peak earning years.

Have other Streams of Income

The next step to achieving your early retirement goal is by having other streams of income.

Even though your full-time job pays you well, if you want to withdraw from any form of work when you’re 40, then having a source of side/passive income is a smart financial decision.

This is because; the other streams of income will increase your initial financial number, therefore, guaranteeing added retirement security for future unforeseen circumstances.

Cut down on Monthly Expenses

The next step to retiring at 40 is to start on time to cut done on monthly expenses. When you cut down your expenses, you tend to increase your savings rate.

It is also important for you to understand that once you inflate your lifestyle it’s hard to go back, therefore the easiest way is to start early to cut down your expenses.

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Dissociate spending and earning because what you need to live has nothing to do with what you earn.


This is one of the most important steps to retiring at 40. Making the right investment decisions is one of the best financial decisions you can make to achieve your goals.

Moreover, with the introduction of vast trusted fintech apps, and safe investment opportunities like agro investments, stock investments, and real estate investments, you can make investment decisions even from the comfort of your phone.

Some of the investment decisions you make can serve as an added stream of income for you.

However, beware of dangerous investment decisions with hefty, unreasonable percentage returns in the shortest possible periods.

Therefore, before making any investment decision, run the numbers, do your background research and take advantage of every opportunity to save and earn.

In conclusion, retiring at 40 is attainable, however, you need to plan early because the sooner you start planning, the better your odds of retiring early with the money you’ll need to enjoy it.

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This article was first published on 4th July 2022


Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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