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Retire at 30

Updated on April 6, 2016
Only you can make choices for yourself.
Only you can make choices for yourself. | Source

Have you ever read an article and thought, did the author even pay attention to what he wrote? Well, I did this earlier today. I love to do research on subjects I am not familiar with, and I love research on finance. I actually came upon an article which claimed to show you how to retire at 30.

I have to be honest, I really wasn’t looking for tips on how to retire at 30, I was looking for different ways to market a finance blog. It’s kind of funny how you can start with one topic and end up on something not even remotely related to what you had searched. I’m sure you know what I’m talking about. Heck, over 80% of online researchers do this daily.

So, this article talked about how you could retire by the time you are 30 but offered no real course of action. It used titles like start now, and live off of the bare minimum. I’m sorry but, I thought the entire point of the article was to actually show you how to do it, not offer tips which have been rehashed for years and don’t work.

Let me explain why I chose to write this article. I don’t feel that articles such as the one mentioned do the internet any good and I’m sick of seeing articles like it. I want valuable information, not claims which can’t be done.

Can You Retire at 30

Quick answer is, probably not. Even if you started, as the article states, now, you would most likely have 10 years to do it in. Let’s say you still plan to live off of the bare minimum after age 30, but you can’t get social security until you are 65, and most elderly people have to have a minimum of $1200 a month to survive on (assuming you can even live off of that amount in 10 years after the inflation). It still would not be possible for an average worker to retire by 30, but for arguments sake, lets continue investigating.

About the Author of the article How to Retire at 30:

I don’t like calling people out unless there is a reason for me to do so. The author plagiarized themselves by writing another article, How to Retire At 40. Don’t bother reading it if you read the first one, it is the exact same nearly word for word.

Invest in what matters
Invest in what matters | Source

How Much Would I Need to Save to Retire at 30

The article goes through an array of details to figure out how much you would need to save but, it doesn’t give you an exact number. I’m going to do my best to break it down for you. Let’s say you have 10 years to save until you reach 30. Let’s also say you are probably going to live until you are 80. Now, if you subtract 30 from 80, you will come up with 50 years. That is 50 years for you to be in retirement. Minimum wage workers make an average of $1200 a month, let’s say you need to live off of this number once you retire. So, now we are going to multiply 12 months by 50 years which equals 600 months. Let’s go ahead and multiply 600 months by $1200 to equal $720,000(the amount you would have to save to live off of $1200 a month after you retire at age 30).

Now we know we need at least $720,000 by the time we are 30, we are going to divide by 10 years since we need to save for ten years. Dividing the number into ten years gets us $72000 per year, and again by 12 months which equals $6,000 per month. We would need to save a whopping $6,0000 per month just to be able to retire at the age of 30, and these numbers do not reflect the amount we need to live off of each month while we are saving.

Source

What If You Saved Aggressively and Invested?

If a person found a lot of ways to save money, or to earn extra money, they would need to either have a damn good job or, work 24/7 in order to make these numbers. If someone invested on short term stocks as the article suggest, they still wouldn’t be able to make these numbers unless some miracle happened.

I read somewhere that it takes an average of 1 million dollars to retire and live comfortably and this I can believe. Retirement is not cheap, even if you lived as cheap as possible, it isn’t cheap.

Conclusion

If you are really looking to retire early, start saving and investing as much as you can but don’t forget to live life in the process. In reality, it is nearly impossible for anyone to retire at 30 unless you win the lottery, have a rich uncle, or invest in something which mysteriously takes off over night. My advice is to work hard and continue to save until you are able to retire. If it was easy to retire, don’t you think more people would be doing it?

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