They say nothing in life is guaranteed but death and taxes, and sometimes it feels depressingly true. The current retirement age in the US is 67, and some lawmakers are suggesting that it may need to go even higher thanks to the dire state of Social Security in America. Over in the UK, things aren’t much better — 67 is the magic age across the pond as of 2026, but researchers say that may need to go up to 71 to make the payouts feasible. If you don’t want to live like that, it may be possible to retire early — but it will take a lot of hard work and planning to make it possible. Here’s how to get started.
1. Get brutally honest about your spending.
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Track every single penny in, every single penny out. Look, unless you hit the lottery, early retirement isn’t about fancy stuff – it’s about being smart with your money. Cut wasteful subscriptions, question every impulse buy, and get laser-focused on what brings real value to your life. That’s not to say that you can’t have any fun in life, but you’ll have to tighten the purse strings if you don’t want to be struggling so much in your senior years.
2. Forget keeping up with the Joneses.
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Who cares if your neighbor has a new car? They might also have mountains of credit card debt to go with it. A recent study from Wells Fargo found that millennials in particular are obsessed with looking rich, with 60% saying it’s important to come off to their peers like they have money even if they’re actually struggling to make ends meet (via Yahoo!). Don’t focus on how your life looks to other people. Prioritize building wealth, not bragging rights. All of your material goods aren’t going to make you happy when you’re trying to pull yourself out of bed for 8 hours on your feet when you’re 70.
3. Get comfortable with “good enough.”
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Your house doesn’t need to be Pinterest-perfect. Your vacations don’t need to be Instagram-worthy. “Good enough” lets you save money and retire faster. This doesn’t mean that you can’t have nice things, it just means that you don’t always have to go for the best or most expensive of everything. Sometimes, there are items of the exact same level of quality at a much cheaper price, just without the fancy brand name attached. Embrace imperfection and watch your bank account flourish.
4. Master DIY and fix-it skills.
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Every time you hire someone else to fix something, you’re delaying retirement. YouTube is your new best friend. Learn basic home repairs, car maintenance, and even sewing tips. Being capable keeps those dollars in your pocket. Of course, there are some repairs you really shouldn’t try on your own as they could make things worse and end up costing you more. However, learning how to sort out your minor DIY jobs on your own will save you major bucks and boost your confidence at the same time.
5. Make cooking a priority, not an option.
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Restaurants and takeout = budget black holes. Cooking at home isn’t always glamorous, but if you want to retire early, it’s a must. Get creative in the kitchen. Bulk cooking and meal prepping can be lifesavers. Also, embrace leftovers. If you added up how much you’ve spent on Uber Eats and Door Dash this past year, the number would likely be staggering. Times that about 20 or 30 and you’ll see just how much more you could have in the bank.
6. Build a financial cushion and treat it like it’s holy.
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Stuff happens. Car breaks down? Roof needs replacing? Emergency savings protect you AND your retirement plan. No excuses, never touch this stash without a real crisis. If you don’t have emergency savings or aren’t sure how to start, Morgan Stanley has a great guide with some basic tips to help you get going.
7. View hobbies as side hustles, not money pits.
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If you love to make candles, could you sell them? Passion for gaming? Maybe try streaming. Early retirement needs more income streams, not fewer. Make hobbies work for you, not against you. There’s just one minor caveat here: Don’t get so caught up in the hustle that you end up working yourself into the ground. There are only so many hours in the day, and some of them need to be for rest.
8. Downsize ruthlessly.
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Bigger isn’t better when you want to retire early. A smaller home equals smaller bills and less to clean. Do you really need all that clutter? Sell your extras, not just for cash but because a simplified life is a less expensive life. As long as you have a clean, warm, safe place to come home to at night, the fancy stuff doesn’t really matter so much, right?
9. Learn the true meaning of “delayed gratification.”
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Fancy latte every day? Trendy new clothes? It might feel good now, but it screws your future self. Early retirement is the ULTIMATE gratification, and that requires short-term sacrifices. Remember your goal with every tempting purchase. Again, I’m not telling you to live a miserable life devoid of even the tiniest treat, but maybe make them actual treats that only happen on rare occasions rather than daily occurrences.
10. Negotiate everything—ruthlessly.
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Cable bill? Cell phone plan? Insurance? These aren’t set in stone. Pick up the phone and haggle. A few minutes on the phone can save you serious dough over time. Remember, businesses WANT your money, so make them earn it. There are always competitors who will be willing to meet you where you’re at, so spend the time finding the best deals on all the services you use.
11. Invest aggressively, invest consistently.
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The stock market’s your friend, but only if you use it properly. Invest as much as you can, as often as you can. Let compound interest do its magic. If all of this sounds like a foreign language and you have no idea what I’m talking about, make sure you get up to speed on the basics of investing. Learning about how compound interest works will be doubly helpful — financial literacy is a must!
12. Ditch the dream – plan for the worst-case scenario.
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Nobody wants to think about getting sick or losing their job, but ignoring reality puts your retirement goals in serious jeopardy. Have a “worst-case” plan to protect yourself, so if disaster strikes, you’re not starting over from square one. Having a nice savings account can help with this, but make sure you’re always looking forward to the next thing so you can stay on top of your long-term goals.
