1. Be wise with your lifestyle. Live within your means. Earning huge salaries does not mean buying expensive stuff like a larger house or a luxurious car. According to financial experts, a worker who wants to retire at 65 should save as much as 15% of his income each year. To retire early, that would mean saving 50% of your income annually.
This may look difficult especially if you are not used to it. Early discipline would bring you a long way. Begin with the larger expenses such as insurance, house, and car. When all is done with the larger expenses, work your way down the smaller ones.
2. Be wise with your investments. You have to make more money to retire early. So let your money work for you but be wise with it. Do not invest all your savings on bonds because they do not allow enough growth. Do not place your money in high-risk equities. Instead, look for the healthy sweet spot. This may include a portfolio consisting of 40% bonds and 60% stocks. For others, it may mean 20% in bonds and 80% in stocks. The key is to find what will work best for you.
3. Be sure that you really want to retire early. Find out what you will do with your life once you retire. This step will determine how much you should save and how long you should do it. This will also help you assess whether your present investments can give you the return you expect.
Early retirement is a matter of right preparation. This will increase your chances of achieving your goal exponentially.