• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

1. Work with a financial advisor

Industry studies have shown that professional financial advice can add up to 5.1% to portfolio returns. But advisors can also help you navigate complex topics such as tax efficiency, retirement withdrawal timing and choosing suitable investments for your goals and risk tolerance. And they can help you stay on track and adjust your plan if necessary.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

2. Make two budgets

Budgeting may seem too boring to be ‘savvy,’ but it’s a key financial tool. A budget can help you understand your current finances, rein in your spending and shape your financial plan. Tracking your expenditures against your budget can even reveal new possibilities for saving.

But you’ll need two budgets. After tracking your current budget for a few months, you can use it to estimate your retirement budget (what you’ll need to live off once you’re retired). This will help determine how much you’ll need to save to retire early. You’ll want to review this retirement budget periodically and make adjustments as needed.

3. Automate your savings

To retire early, you may need to save more than the 15% that’s often suggested. If you want to join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save up to 75% of your income.

Whichever retirement age you’re aiming for, you’ll need discipline to reach your savings goals — and one way to maintain that discipline is to automate your savings. An easy way to do this is to make 401(k) contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account.

There are several apps that can help you automate your savings, including some that will round up your purchases and put the difference in a savings or investment account. Remember to increase your automated amount if you get a raise.

And if you cut out a regular expense such as a subscription or membership to save money, add this amount to your automated payments.

This 2 minute move could knock $500/year off your car insurance in 2025

OfficialCarInsurance.com lets you compare quotes from trusted brands, such as Progressive, Allstate and GEICO to make sure you're getting the best deal.

You can switch to a more affordable auto insurance option in 2 minutes by providing some information about yourself and your vehicle and choosing from their tailor-made results. Find offers as low as $29 a month.

Find the best rate for you

4. Manage your debt

It will be difficult to retire early if you’re carrying a large balance on a credit card or other high-interest debt. The savviest move is to not carry a balance — but life happens, so if you do have a balance, paying it down should be your No. 1 financial priority (along with building an emergency fund).

Paying down a credit card with a 20% interest rate delivers an immediate 20% return, so it might make it easier to do if you think of it as investing.

While you want to pay off high-interest debt as quickly as possible, you might want to consult with your advisor before accelerating your mortgage payments. If your mortgage rate is lower than your expected investment return, you may want to invest the money instead, but this decision will depend on your circumstances and preferences.

5. Maximize your biggest asset

Your biggest asset is likely your stream of future earnings, so to retire early you’ll want to maximize this asset.

While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig.

Retiring early takes planning and dedication — but not necessarily a six-figure income.

Sponsored

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. WiserAdvisor can help you shape your financial future and connect with expert guidance. A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.

Vawn Himmelsbach Freelance Contributor

Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.