Young professionals with ambition in their 20s, 30s and 40s are increasingly trying to make decisions in order to achieve an early retirement age. Investing and spending money wisely is one of the factors that they consider important to achieve this. Even decisions such as owning a car or the place you live are taken into account.
The goal is to have financial independence vs. the idea of retiring. Being frugal it seems, is an important factor in achieving an early retirement.
Other factors that may be taken into account are:
1. Starting saving from an early age.
2. Having strict spending priorities is important. Most Americans spend 100% or more of their income, accumulating debt. The bigger house, the expensive car or newest gadgets are not an option for extreme early retirees.
3. Believing in the 4% rule; most retirees believe that if they withdraw 4% from the nest egg savings in the first year of retirement, then increase that dollar amount each year to adjust for inflation, the nest egg will last a lifetime.
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