How to stop working and retire at 40? It depends on several factors such as your current income, your financial situation and your ability to invest
It might seem like an impossible dream, but in reality with a little planning and commitment it is really possible to stop working at 40. In this article we will talk about the steps to take to achieve “early retirement”. We will talk about how to save, invest and make the most of your income. If you are ready to quit working and enjoy the golden years, read on!
Many of you may be wondering if it is really possible to stop working at 40. The answer is: “it depends”. It depends on several factors such as your current income, your financial situation and your ability to invest and grow your money. If you’re willing to make some sacrifices and follow a few simple rules, quitting your job before retirement might be a great option for you.
“Unfortunately” to stop working at 40, you must surely have one or more jobs that allow you to earn more than € 3000 every month. Without earning a lot, I don’t think it is possible to live on income.
To earn those sums, you should have one or more well-paying jobs or create your own business that allows you to earn € 3-4,000 every month.
Having established this fundamental concept, what are the steps to take to stop working at 40?
One of the most important things to do if you want to stop working at 40 is to invest. Invest your money so that it grows over time. You can invest in stocks, bonds or mutual funds. Many experts recommend investing at least 15% of your income so that you can have a good safety margin for retirement.
But to reach the goal as soon as possible, you should invest much more than 15%, keeping your expenses to a minimum.
There are really many platforms and apps that allow you to invest in different financial instruments, but the most important aspect is the investment strategy.
To stop working at 40, the ideal investment strategy is to create an accumulation plan. The accumulation plan is an investment plan that plans to set aside a certain amount of money each month so that you can stop working early.
For example, if you decide to invest € 1,200 per month from the age of 20 in an index that generates an average annual return of 8%, by age 40 you will have accumulated more than € 700,000.
This is a very effective investment strategy to accumulate as much money as possible, as thanks to compound interest, your money will start growing exponentially.
The first step is to start saving. This seems obvious, but many are not doing enough to set aside the money needed for retirement. If you want to stop working at 40, you will have to save at least 20% of your income. If you are unable to save 20%, then you will have to work a few more years.
There are so many ways to save money.
After investing and saving, you will have accumulated a huge amount of money. What should you do now with this money? Use them until your death?
Absolutely no.
Your goal is to invest all this money in such a way as to generate constant and passive profits that allow you to stop working forever.
For example you could:
Do you want to know how to make the most of technology to organize yourself…
Bridgestone presents the new winter tire dedicated to light transport Duravis Van Winter ENLITENBridgestone has…
What is Outstaffing and how can it be used to increase a company's productivity? Let's…
Announced a few years ago, now we finally have the chance to take a first…
The Sunday schedule showcases the afternoon matches. Let's find out where to see Verona-FiorentinaI television…
The long-awaited farewell to third-party cookies in Google Chrome has been postponed once again, now…