How to Retire by 40? - Passive Income.

Ever thought of retiring early but simply don't know how? Everybody will want to retire as early as the age of 40 with a stable income that is.

People will typically retire somewhere in the range of 50 to 60 years of age. At this rate, not a lot can be done due to the factor of your age apart from you're not as physically and mentally strong as you used to be regardless of you having a lot of money.


Therefore, it can be said that the age of 40 is the best time for retirement since you still have the capability to do physical activities.

These are some of the things that need to be done so that you can retire at 40:

Objective of retirement

You will first need to know your objectives for retirement. You will need to ask yourself these questions:

• How much money do I need monthly to sustain myself without work? (passive income)

• Where will you get that source of income from?

• How much time will you need so that you can retire at 40 years old?

If you are able to answer all these questions, then you will know how to accomplish your objectives in the future.

For instance, you are currently 30 years old and you want to retire at 40. And you require a passive income of $5000 each month from your real estate investment. Thus, you will need to think of a way on how you're supposed to get $5000 a month for 10 years of time.

Planning and strategy 

After you have come up with your objectives, next will be the stage where you think about how you are going to come up with a plan to achieve those objectives. 

In order for you to get the $5000 monthly passive income, you will need:

1. Rent buildings or houses

Let's do the math here if you have one house that can give you a net profit of $500 a month, then you would need 10 houses for you to get $5000 monthly.

$500 x 10 = $5000

Whereas if you have a house that can be rented for $1000, then you would require 5 houses instead.

2. Buy and sell houses (Flipping)

If you ever needed $5000 a month passively, then you would require $1,000,000 and put it into a savings account or an investment that gives 6% dividends each year.

The estimated profit from the increase in prices for a house depends on the type and location :

Let's say 

An apartment, flat, condo - $50,000 - $200,000

Terrace and Semi-D house (Landed) - 100%

If an apartment can give you a profit of $200,000, then you would only need 5 houses to get the $1,000,000

In contrast, if the apartment yields a profit of $100,000 instead then you would need 10 houses. 

3. Unit Trust

Aside from real estate, you can also invest some of your money in Unit Trust and expect to get a profit in the long term. 

Make a higher saving each month if you want to speed up your return so you can get that $1,000,000. But be sure to choose a Unit Trust which you believe to give the highest return based on their performance in the previous years.

4. Business

Business, whether it is part-time or full time can let you earn a huge income if you know how to get it done properly. You just need to do some research on which business suits you the most and whether you have a passion for it or not.

The income that you get through it should be handled accordingly by saving most of it and not spending lavishly. The faster you can get that $1,000,000 the sooner you can retire.

Money Management

After you have done all the strategies and plans as stated above, then it's time to strengthen your income with proper management.

With proper handling of your money, you will be able to make your investments soar higher. Better management won't guarantee that you will be rich but at least it will avoid you from becoming poor and burdened with all sorts of debts. Work hard and always try harder

What age do you think is best for someone to retire?

Also read: How to Make Money From Your Blog in 2020?