Early Retirement Plan

Strategies to Retire on Your Terms

Roatan Sunset with Boat

A smart early retirement plan consists of money earned from passive income. Passive income is a stream of income that is on automatic pilot. It is money that comes from income instead of savings.

Money earned from labor at a regular job is extremely limited. The ability to retire early at this pace is near impossible. You can work more hours and diminish your personal life and still not have enough. With passive income there is no limit to the money you can earn.

Passive Income Examples
Examples of passive income include residual income from rental properties, royalties from publishing a book, automated businesses, most of which are internet-based.

Even an informational website such as this can earn you a passive income. These are just a few examples. The choices are endless.

Investing for passive or residual income will pay out right away instead of at a government-mandated age. Use the money you earn to continue investing in producing passive cash flow and retiring early will cease to be a dream.

Retiring from a Job
Most people work their entire lives, only to retire at 62 or later, exhausted and with health problems. The only income they will see is from social security and perhaps a 401k which brings in barely enough to live on due to inflation and health issues.

Just ask someone you know who has retired from their job. How are they making ends meet? Are they living out their retirement wishes? Do they have enough left over after paying their bills to travel or enjoy other pastimes?

Why wait until that time to retire? Passive income works. It will get you to where you want sooner and with a continuous stream of income.

An Early Retirement that Works
Once you make your mind up to create an early retirement plan you can live with, you must be willing to invest start-up time and money to make it work. Remember, your goal is to retire early.

Keep this in mind when you want to give up because it takes time and effort to get there. But it will be well worth it when you realize you can retire on your terms and schedule and not on intrusive government restrictions.

Other Ways to Speed-up Retirement
The next step to retire on your terms is to cut down on spending. Blind spending is what gets us in trouble. Once your passive income starts coming in, avoid diminishing it again with unnecessary spending.

Work to accumulate capital, not stuff. Do you work to buy things? Like clothes and new TVs? There is always something you absolutely must have. Which sooner or later creates an unconscious spiral ending in debt.

If you are serious about retiring early take a good look at where your hard earned money goes. Follow these steps and leave the rat race behind...


  • Cut your spending. It is the first step to early retirement. What do you spend money on, over and over? Do you REALLY need it?
  • Get creative in decreasing the output of money. Once you start, it becomes a snowball effect. Adapting becomes second nature.
  • If your debt is in credit cards, start paying off the lowest credit card balance.
  • When that’s done, start on the next highest credit card. Use the money you’re saving from the previous one. And so on.
  • Do away with the gym membership and 500 channels. If your goal is to retire early, stick to your early retirement plan.
  • What else can you cut down on? Retire smart by using strategies for a secure retirement.


Forget about acquiring stuff because it’s the newest gadget. Will it get you closer to an early retirement? Or will you end up deeper in debt?

You don't have to live under a flower pot, eating spam and crackers for twenty years to retire early. But you do have to make changes.

Spending Money

Decide when to retire by creating target retirement funds to pay for living expenses. Taking control of your spending is the first way to reach your retirement wishes.


If you are working to buy material possessions instead of accumulating capital...

Early retirement will only be a pipe dream. Turn it around and retire smart.

  • Are you strapped with a mortgage and scrounging to come up with money for your 401k? Then you may need to make up for lost time.
  • Consider investing in passive income. Research all you can about passive income until you come up with one you can live with.
  • If you’re debt free, you’re ahead of the game. And this is your goal. You can now move full-steam towards investing in your early retirement plan.
  • If you're in debt, it's time to begin some serious debt reduction. Avoid wasting time by letting this problem grow.
  • Become thrifty to a fault. Every time you pull out your wallet, ask yourself, “Do I REALLY NEED THIS?”
  • Don’t wait until you’re debt free to save. Start saving today. Sock away 25% the first month. It is not as difficult when you stop blind spending. But it may take some getting used to.
  • Have your early retirement plan on paper. Read it every day. Written goals help to move you in the direction of those goals.
  • When you realize you can stop the crazy spending, hike the amount you're saving to 35%. If you’re really disciplined, you can raise it to 50%.

Read everything you can on making your money grow and start diversifying. In Real Estate, money market savings, certificates of deposit, and stocks.

Can you see yourself snoozing under a palm tree in Key West on a work-day? And be able to accomplish retirement bliss long before the government says you can finally retire?

Return to Retire Early

Retire on a Cruise Ship

Investing in passive income will accelerate your early retirement plan without depending on the mandated government requirements to retire early.

Then cut down on the unnecessary spending. Accumulate capital not stuff. You’ll be surprised how fast that money grows as does your ability to retire early.

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"A year from now, you'll wish you had started today."
~B.C. Forbes

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