Tips & Tricks to Retire by 45

Yes, it’s definitely possible to leave the 9-to-5 rat race behind and retire by 45. But you’ll have to start early and do some advanced planning in order to pull it off. Here are some tips and tricks to help you plan for and live the retirement lifestyle you’ve always dreamed of, sooner rather than later.

What Does Retirement Mean to You?


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People seeking to retire early don’t often think about what they’ll be doing other than not working a 9-to-5 job. But for retirement at 45 to be a reality, you’ll need to think seriously about what your retirement lifestyle is going to look like.

  • Where will you live?
  • What will you be doing?
  • How will you travel from place to place?

Once you know the answers to these questions, you can begin determining how much money you’ll need to retire.

How Much Money Will You Need to Live On?

Money to Live On

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One way to calculate how much money you’ll need is to multiply your current income by 35. For example, if you are currently earning $50,000 a year, then you’ll need $1,750,000 to retire on. This calculation assumes you’ll live the standard American lifespan of 85 years.

Another calculation is to assume that about 3% of your retirement savings will go toward your annual retirement expenses. If you’ve saved $100,000, then you’ll have $3,000 a year to pay your retirement expenses. In this case, you’ll either have to drastically reduce those expenses or save a lot more.

What Current Expenses Can You Reduce?

Reduce Current Expenses

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You want a comfortable retirement, but that doesn’t mean you have to live a lifestyle of the rich and famous. Start by reducing or eliminating the nice-to-have items and activities you spend money on, such as eating out or buying that fancy latte.

Next, find ways to cut costs on the necessities. Rent instead of buying, or live in a smaller home; drive less, or eliminate your car altogether–especially if you live in a city with great public transportation; buy generic and bulk products; use coupons. Remember, you’re not depriving yourself–you’re making sure you can retire by 45.

How Quickly Can You Save?

Save Money Quickly

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Use the money you save by reducing expenses and cutting costs to add to your existing retirement nest egg or to start one. Speak with a qualified financial advisor to determine the best savings/investment strategy to use that will allow you to meet your retirement goal. Of course, the more money you pour into your savings, the faster you’ll be able to retire.

Why Not Start a Home-Based Business?

Home Based Business

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Just because you’re leaving the 9-to-5 world behind doesn’t mean you won’t be active during retirement. Consider starting a home-based business or gold investment now, and pour some or all of the profits into your retirement savings.

A home-based business can also support you during retirement if you aren’t able to save as quickly as you’d like. Choose something you enjoy doing, and then find ways to monetize it. Do your business on the side while you’re still working. By the time you’re ready to retire, you may very well have more than enough money to support the retirement you’ve envisioned for yourself.

Begin now to live as closely to a retired lifestyle as your present work allows. The more you do, the easier it will be to kick your 9-to-5 to the curb by your 45th birthday.

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