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If you’ve been struggling with learning exactly how to achieve early retirement by 30, this article will dive into the 4 secrets you must know for F.I.R.E. in your 30’s!
The 4 ways to retire early in your 30’s are:
- Invest in Rental Properties
- Side Hustles
- Maximize Your Investments
- Reduce Your Fixed Expenses
This articles will help you gain a better understanding of how to achieve your goal of financial independence retiring early (F.I.R.E.) and be a great foundation for your journey for financial freedom!
So, let’s go into the four specific secrets of how I have been successfully working achieving early financial freedom, and how you can implement these same secrets in your life as well!
1. Invest in Rental Properties
There are many ways to invest in rental properties, and it there is a hump of learning to overcome – but it is worth it if you want to retire early in your 30’s!
To learn about the different types of rental investing that you can try, check out this article here!
For me, I am using a strategy called “house hacking” to achieve F.I.R.E. It’s all about buying multifamily rental properties (duplex, triplex, quadplex) and living in one unit while renting the remaining units on the property.
A great benefit for this type of investing is that you can have other people pay off your mortgage and have large assets down the road! You can reduce your biggest fixed expense (your mortgage) and earn money with each property you own!
Rental investing can give you long-term wealth that you’d need to retire early!
If you are a woman ready to learn more about rental investing, check out this FREE course for beginner real estate investors!
2. Side Hustles
There are a lot of financial gurus out there who talk about not starting side hustles due to it taking too much of your free time and whatnot.
However, I believe right now is an incredible opportunity to get into the digital space and to make extra money! With that in mind, I’m not looking to earn enough money to replace my income overall, I’m just looking forward that extra money I can use to set aside for my rental properties and to cover the rest of my living expenses.
If you can imagine, with the combination of house hacking reducing living costs to only a couple 100 bucks month or less, you’d be able to use not only that money but also the cash from side hustles and use it for investing.
This extra cash flow each month accumulates over the years!
3. Maximize Your Investments
The third way to achieve early financial freedom in your 30’s is by maximizing your investments.
What does this mean?
There are many ways to invest. This could be in a 401(k), Roth IRA, HSA, 402(b) or nonbrokerage account (like Robinhood or Webull).
Ready to start learning about the stock market? Get up to 10 free stocks from Webull here or up to 3 free stocks from Robinhood here!
Check out this article to learn about these investing apps I personally use!
What I do specifically is look for either stock options that produce high dividends or I consider investing in index funds. For me, index funds are the safest option. I don’t mess with day trading.
The way this all works is I earn money from my side hustles and use that extra income to invest, instead of just sticking it in a savings account.
Are you starting to see how this works?
As you earn money from your side hustles, you can invest the cash to produce you more income. Letting your money sit in savings accounts won’t help you retire early!
Your money will grow and you’ll continue to earn more dividends.
As you earn more dividends, you can reinvest and this becomes a compounding game. This is very similar to the concept of the Millionaire Investing Challenge! When done correctly, you can eventually earn enough money to live off of the dividends from the investments!
4. Reduce Your Fixed Expenses
Fixed expenses are expenses in your budget that don’t change month by month.
They are called “fixed” because this cost is essentially the same with each month. As in, this could be your car payment, your mortgage or home payment/rent, or even your Netflix subscription!
Variable expenses are costs that vary month by month. This can include food, entertainment, or even personal care.
Now, I want you to consider this concept: You could choose to stop going to Starbucks or out to the bars and stop going out with friends or make one simple change…
This one change includes changing where you live (what you eat, or how you travel).
Let’s be honest, you do not have to live in the most prestigious suburb and you don’t have to send your kids to the best school in your city. If you were to go to the second best suburb or city, how much would that save you in living costs?
Housing costs vary depending on where you live! If you are working diligently to save every dollar you can, yet you live in one of the higher-class suburbs, imagine how it would feel to save an extra few hundred dollars a month from changing where you live.
If this budget hack is too difficult to implement in your life, then consider house hacking! As mentioned above, this is a rental investing opportunity that is available to anyone and is the easiest to do!
This concept is expertly described in the book Set For Life by Scott Trench and it is a resource for women and young adults that I always highly recommend if you want to retire in your 30’s!
Summary
These four secrets to achieving early financial freedom in your thirties are a perfect foundation to anyone wanting to begin a journey to retiring early!
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