How to retire in 10 Years while making less than $100,000 per year

Reading the table,  you can see if you save and  invest at least  65% of your  take-home  pay, you  would reach  Financial  Independence  in just over  10 years.

How to retire in 10 years

Source:  Mr. Money Moustache

Assumptions in the shockingly simple math

There are a few assumptions in the math behind Financial Independence, that you need to be aware of.

Assumption 1: Your investments earn 5% above inflation.

Assumption 2: You can live off the 4% safe withdrawal rate during retirement.

The most important variable when it comes to Financial Independence is your savings rate.

How to retire in 10 years with a five-figure income

Swipe up to view snapshot of Joe’s budget.

Joe is single, 48 years old and makes $84,000 per year. Until recently, Joe had a conventional attitude towards money, meaning he did not value it.

Joe is spending 78% of his take-home pay on “the big 3” expenses; housing, transportation, and food. 

Meet Joe

Joe decides to change his circumstances

Joe began reading articles on Financial Independence and got inspired to make some serious changes. The first thing he did was set a goal to reach Financial Independence in 10 years, with $1 million saved for retirement.

Swipe up to view snapshot of Joe’s new budget.

Final thoughts

Low to middle-income earners can still achieve Financial Independence but they have a lower margin for error.

– Working overtime hours. – Picking up a second job or side hustle. – Starting a business.

Ideas to earn more money.

Ideas to save more of the money you have

– Downsize your home. – House hacking. – Get rid of your car. – Tracking your spending to find and eliminate wasteful spending.