How You Can Retire In 10 Years | FULL GUIDE

Early retirement, what a dream am I right? Financial Independence Retire Early (F.I.R.E) can pretty much only be achieved by following a couple simple steps outlined in this video. Enjoy! ► Mastering Your Personal Finances:

90 000 hours that’s the average amount of time that adults spend working throughout the course of their lives which ends up being around 10 consecutive years of zoom meetings writing up proposals and pleasing your boss and that’s just the average right some people work part time while others work grueling hours to try and climb the corporate and social ladders but

What’s certain is that many of us are programmed from a young age to spend most of our adult lives working on productive output in the context of the corporate world but hey it’s not all dark and summery weather from here on out once you hit the average age of 64.6 years old you get to finally cash in your hard work and retire for good at least that’s a dream that

Many people hope to one day achieve unfortunately though with increased automation and rampant inflation eating away at our hard earned savings the average retirement age keeps getting pushed back further and further and further with the required nest egg for comfy golden years becoming larger by the year after all a big mac in 1986 cost a dollar sixty whereas

It’ll set you back four dollars and fifty cents today if you walk into your local mcdonald’s after clocking out of your shift today and don’t even get me started on increased home prices the cost of health care and education crazy so anyways if retiring is becoming an increasingly difficult fee to achieve for the average person then you might be wondering why in

The world this video would be called something along the lines of how to retire in 10 years and i promise you this doesn’t come down to moving back with your in-laws well actually maybe it does but regardless it requires a lot of strategy planning and consistent hard work so if you’re ready to take the challenge let’s start the 10-year timer okay so before we get

All wrapped up in the specific steps needed to kick-start your retirement we first need to reframe what retirement even is to us in the first place which might sound really simplistic right retirement is when you get to quit your job at 65 and spend six months of the year golfing down in florida well actually the concept of being able to retire in the first place

Ultimately just comes down to generating enough income on a monthly or yearly basis to fully cover your living expenses period let me repeat that again once you have enough incoming and reliable passive income to fully cover your monthly living expenses well technically you could choose to retire this is a concept that i first stumbled upon while i was actually

Still in university and just trying to soak up as much information as possible about business investing and money and the book the millionaire fastlane kind of flipped a switch in my mind on the traditional narrative towards retirement being to work 30 40 years and then hopefully you were financially savvy enough throughout that time to be in a position where your

Investment portfolio has grown to a point where you don’t need to sell the house and eat baked beans for the rest of your days oh and count yourself lucky if you’re working towards a full pension many of us in the next generation probably won’t have that luxury but anyways i digress the point is once it becomes clear in your mind that your retirement ultimately comes

Down to the balance you strike between your income your expenses and the way you structure your investment portfolio well it then becomes quite a bit easier to conceptualize a timeline towards your financial freedom which actually leads us into the first thing that you’ll need to get under control and that is to stop buying stupid crap you don’t need probably not the

First time you hear that or some other version of lower your expenses and look i’m actually not at the mentality that strictly focusing on lowering your expenses has the highest impact on saving more of your income and retiring early in fact i strongly believe that focusing on increasing your income is infinitely more powerful because it then unlocks an abundance

Mindset rather than a scarcity mindset towards money but look we can’t still deny the fact that if you’re looking to retire in the next 10 years obviously it’s a lot more easy to achieve this through passive income sources and recurring income if you don’t have 1200 audi payments every month and a compulsive shopping disorder so you’re smart and you probably know

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Where i’m going with this the most financially crippling thing you can do towards achieving financial freedom and early retirement is buying dumb crap you don’t need to impress people that you don’t care about especially if those things aren’t retaining at the very least or increasing in value over time okay so now that you’ve determined that financial freedom

Is more important to you than riding around in this year’s c-class let’s just get down to the brass tacks here being that if you aspire to retire in the next 10 years there’s no other way around this than the fact that you’re going to need to compress the next 20 to you know 40 years of extra work efforts and condense them down into only 10 years basically the

Amount of value that you provide to the market over the next 10 years is going to at the very least have to match and hopefully surpass the amount of value that you would otherwise be providing in the next 30 years of work no one said this was going to be a cakewalk now on the surface this might seem like an impossible feat and the reality is that for many yeah

This might actually be an impossible feat based on current income sources employment status and then also systems in place in order to generate income while you’re out of the picture right so creating systems that can essentially replicate you as the breadwinner so this is where the need to create business and investment systems becomes critical on your path towards

Financial freedom unless you’re planning to move off of the grid and live off of the land you’re going to need to fine-tune your financial literacy and start working towards creating multiple income streams so before deciding that life’s unfair and closing this video well you’ll need to make a choice are you going to challenge the size cool of your life and try

To make changes for the better or are you gonna succumb to the narrative that focusing on increasing your income is for capitalists like it or not money is your ticket to ride when it comes to early retirement personally i’m focusing on building three business and investment systems that everyone watching can also start working towards the first system is this

Main business system which happens to be this youtube channel right i made a choice over a year ago to quit my full-time stable government job that had a full pension awesome benefits and so forth in order to focus on my business for a ton of different reasons both personal as well as financial but some of the main reasons include the fact that a business system

Depending on what it is is typically a lot more scalable over time both in terms of income but then also just the size of the value that you’re outputting to the market and above that it also has the capacity to scale to a point where i’m able to detach the time i’m putting into the business for generating income right at my job the time i was dedicating to those

Hours at work had a direct reflection on the income i was making now the second system is an investment system where i’m actually investing in the stock market for both appreciation of capital but then also dividend income right for that passive income flowing in each and every month now i’m planning on continuing to invest in this system for the next 10 to 20

Years hopefully at an accelerated pace to the point where that portfolio is large enough to throw off enough cash each and every month to cover all of my baseline living expenses this is by far the easiest investment system that you can start setting up and anyone can start investing in the stock market with literally five bucks now or even less you can start with

A dollar right so using any of these discount brokerages is one of the easiest ways that you can start creating an extra income stream for yourself and also starting to grow your investment portfolio over time which is critical for early retirement and then finally the third system that i’m building is somewhat of a mix between a business and an investment system

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Which happens to be my real estate investment portfolio where over the past roughly four years i’ve been acquiring fixing up flipping and then holding investment properties which i’ve appreciated over time and have also created equity by actually increasing the market value of these billing so this is actually something i’m hoping and striving towards creating a

Large enough portfolio where it can actually be my end game where even when i’m actually retired from day-to-day active work for example well this is something that i’m extremely passionate about and managing the growth of that portfolio for the next 20 30 years is something that i’m looking to achieve so as you can see though each one of these systems becomes

For me like a gear in a larger money system where each one is actively working towards generating more income and will one day allow me to remove myself from the active line of work now in terms of what you can do here those are my three systems you need to be focusing on how you can create your own systems that are going to create a larger money system for your

Own financial freedom that might right now be a job working on increasing active sources of income through another business and or an investment system through the stock market these are all ways that you can create multiple money systems that play into your larger system if you’re watching this chances are you’re either currently an employee or a self-employed

Individual meaning that on robert kiyosaki’s cash flow quadrant you would be situated on the left side and if you aspire to retire early then it’s pretty much inevitable that you need to transfer over to the right side of the quadrant meaning that you would either become a business owner and or an investor and this is pretty much only achievable if you start

Focusing on creating business and investment systems working for you so you’re probably wondering how you could actually even go about calculating the exact value needed for your investment system and not to worry it’s actually pretty simple but before we jump into that i’d like to take a moment here to speak about today’s video sponsor while simple trade wilson

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Down below in the description now that you’re up to speed on what’s required to retire early we can actually hop into the fun part of today’s video where you get to actually determine what the magic number is for your investment system if you spend time online in the finance community well yeah i mean you’re watching today’s video chances are you’ve heard of fire

And not this fire i’m talking about financial independence retire early basically the concept boils down to the idea of growing an investment portfolio to a size where it’s large enough in order to generate enough income for you to fully cover your living expenses for the long term and lucky for you there’s no need for overly complicated mathematical formulas here

There are multiple different fire calculators online so let’s actually go take a look i know this looks like we’re back in middle school here but i promise it’s more interesting than it looks so basically this is a financial independence retire early calculator where based on your income as well as your savings rate based on your expenses were able to estimate when

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You would be able to actually take the leap and live off of your investments exclusively so let’s take a look here let’s say you were making 65 000 a year in income which is a great salary all right well your savings are going to be the difference between your income and your expenses so remember earlier on in the video we talked about having extremely inflated

Expenses this is going to have a direct impact on your capacity to retire early right so let’s say your savings rate was 80 well now you know it would take significantly less years it would take around 5.6 years based on this other criteria to actually retire if your savings rate was only 10 well take a look here 51 years all right so huge difference on average

Though let’s say you’re able to achieve a savings rate of 40 right if you want to retire early you’re going to need it’s going to be critical for you to actually focus on really saving a lot more of the money that you’re able to make and if you’re able to skyrocket your income that’s even better all right but sixty five thousand dollars a year forty percent savings

Rate with an average return on investment in the stock market let’s just say on average here eight percent because typically speaking over the years it has been around eight percent actually the s p 500 though over the past roughly 10 15 years has been significantly higher than that but we’ll just put it at four percent all right and then the withdrawal rate is

Essentially the amount of money that you would be taking out of your portfolio once it reaches a large enough value in order to cover all of your expenses so based on all of these values right here we can see that at a savings rate of 40 and this income it would actually take 18 years in order to have a portfolio large enough to fully live off of your expenses and

It’s here that we can start actually playing with these values if you’re able to increase your income to say 80 000 per year well now it would actually shave off roughly five years towards that retirement goal what’s also interesting about this calculator is that we have this chart right here showing us based on your savings rate the average years that it would

Take in order to achieve financial independence and if we scroll down based on these values we also have that materialized in a percentage of the expenses covered by the return on investment where again it would take in this case around nine years in order to achieve 97 of all of the expenses covered by that return on investment the thing is when it comes to an

Investment portfolio large enough for a withdrawal rate in order to cover your expenses you need to actually exceed by a certain amount the value of your monthly expenses so in this case at around 14 years we’re looking at a value that’s significantly above your amount of investments but that’s because we’re going to be withdrawing an amount every single year from

Then on out so calculating the exact amount that you need invested in order to retire in the next 10 years is great and all but you should first be even asking yourself why am i looking to retire in the next 10 years in the first place after reflecting on this topic quite a bit myself and speaking with successful individuals i’ve kind of come to the conclusion that

First finding something that you’re truly passionate about is a lot more important than striving towards quitting your job and just basically sitting on a beach i would absolutely love to know what your plans are for retirement and when you strive to achieve financial freedom make sure to let me know down in the comments what those plans are and let’s have a

Conversation and if you want to learn more about how you can start investing for passive portfolio income i would highly recommend that you check out my full guide on investing that you can check out right here now thanks a lot for watching today’s video if you enjoyed it make sure to drop a like subscribe to the channel for more investing content and i will see you in the next one

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How You Can Retire In 10 Years | FULL GUIDE By Griffin Milks