Ever dream of quitting your job and having enough money to travel the world? Jeremy Jacobson and Winnie Tseng not only had that same dream, but they also made it become their reality. Now they are traveling the world and enjoying the finer things in life. Donna Ruko talked with this adventurous couple to find out some practical ways we can all retire early just like them.
1. Get Out of Debt
You need to get to zero before you can build assets. Of course you'll have to work hard. Jeremy buckled down bigtime to pay off his student loans, including skipping six years of vacation-time for extra pay. But that led to the realization that vacation was what he wanted to do for the rest of his life.
2. Make a Lifestyle Change
Most people spend about 80 percent of their income on three things - housing, transportation and food. Jeremy and Winnie set their focus on those things. They downsized their living situation, stopped eating out and even sold their car.
You have to figure out how much you want to spend after you retire. If you're saving about 10 percent of your income that means you're spending about 90 percent of it. So simply speaking after about nine years of saving you have enough in cash to take one year off. Jeremy and Winnie wanted to speed up that process so they saved around 75 percent of their income for about 10 years while investing some and buying very little.
Big thanks to Go Curry Cracker!
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