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How to Retire Early If You Have No Savings

By Edited Nov 13, 2013 1 0

Everyone dreams of retiring early but the hard truth is most of us not only will not retire early we probably won’t ever retire at least not completely. The main reason being is that a majority of people do not have enough money to support themselves without some type of income coming in. According to the Employee Benefits Research Institute, 43 percent of Americans have less than $10,000 saved for retirement. Even for the most hardcore of penny pinchers this would not support an individual for much more than a year, if that. But despite these facts there is always going to be people looking for the answer of how to retire early if you have no savings. So I have decided to do my best to find as many ways to accomplish this task. Now before you begin reading I must say that if your idea of retirement is to sit at home in a big fancy house with two cars in the driveway and not do a thing until the day you die that this is not the list for you. If fact I’m not sure if that list even exists. But if you are someone who’s idea of retirement is not having to go to a place of employment working for “The Man” and instead doing simple but enjoyable tasks to make a few dollars here and there. While living a very modest life style then please read on and I hope you enjoy.

The Key on How to Retire Early if You Have No Savings

How to Retire Early If You Have No Savings

So the key to retiring early with no savings is to find a way to lower or completely eliminate as many expenses as possible while finding ways of generating a steady stream of income. Ideally this income should be as passive as possible and what “work” does have to be done should at least be enjoyable. In short if you have steady income and spend your money wisely, then you will be able to retire with little or no money saved.

Reduce Your Total Spending Costs!

At this point you are probably thinking, okay genius sounds great but how do I that? Well lets start with cutting expenses. For most this will be the hard part because it may require eliminating some luxuries you have grown accustom to over the course of your life. For example you will want to get rid of all expenses that are not a must like satellite or cable TV, the internet, cell phones, eating out, shopping as a hobby or activity, magazine subscriptions and the list goes on and on. Basically if you ask your self “Do I have to have (item in question) to live” and the answer is no then you should be getting rid of it. Now this might sound a little extreme but if you really want to retire early and have no money saved you will have to do some extreme things. This is the point were someone who thinks they are clever asks, what about my car or what about my house or what about, what about, and what about. And honestly it all depends on how bad you want to retire. No you don’t have to have a car to live but it does make life much easier. But this doesn’t mean you have to have one. One option that doesn’t require owning a car is to live in a place where you can walk everywhere you need to go, like a city. A few more options are to use a bike or an inexpensive shooter they make baskets for both or you can use public transportation. The real point here isn’t what about my car the point is reduce the amount of times you need a go other places. Then decide what the most efficient method will be for getting to the place have got to go. And as far as houses go smaller is better. A big house is simply going to cost more! More heat and more cool and more to upkeep. So if you live in a big house your best bet is to buy the smallest house you can be comfortable in. For one or two people a 1,500 square foot home should be plenty. Or there are other options which you can read below.

Ways to Make Money While Retired

Now for the second part of the equation, how to make money while retired. This part really is only limited by your imagination. There are just as many ways to make money in this world as there are people living in it. So start thinking. One thing that your should consider is how to use things you have, like your home, or things that you want but don’t have to have, like your car, to help you produce an income or pay for itself. For example lets take your home. One option is to rent out a room or section of your house to someone, preferably for enough to pay for a majority of the expenses. Or if you don’t like that idea you can buy or build a duplex live in one side and rent the other side out. This lets your renters pay for the mortgage while you live in a nice home for basically nothing.

Duplex Home

As for your car maybe you can start a side business as a courier and make a few small deliveries for local companies a couple days a week. No, this isn’t very passive but it does bring in a few dollars a month for minimal work while also helping pay for your car and getting you out of the house every now and then.

Another option you will want to consider is how to make any hobbies you might have profitable. Many people want to retire from their current job to work at a hobby they love. Some hobbies will allow you to make money through either sales or passive income. For instance, if you decide to write a book and are able to publish that book in regular or e-book format, then you could earn periodic royalties from books sales. Or maybe you like woodworking and you decide to retire and build furniture, then you can sell the furniture you create for extra income while doing the work that you love. The options are truly endless. The important part is finding something you love to do because doing something you love really isn’t work now is it?

If you already own a home another way to retire early with no savings is to get a reverse mortgage. Reverse mortgages let you live off of your home equity while still remaining in your home. Reverse mortgages are tax-free, and many have no income restrictions. Federal law allows people to obtain reverse mortgages starting at the age of 62. This is really a risky option but it is a possibility for some.

Coupons are another excellent way to not only save money but to make some too. I know several people that use coupons to get items for a super low price or even free using coupons. Then turning around and selling those items at local flea markets for a profit.

Then there is Social Security, this may provide a better income than you think it will. In many cases, Social Security replaces approximately 25 percent of your income from working. To estimate how much your monthly Social Security benefit will be, you can use online calculators or refer to your annual Social Security statement.

You should also consider growing as much of your own food as possible. This will not only lower your food expenses but you will be able to sell any extras you might have to neighbors or at the local farmers market. And don’t try using the excuse that you have not room for a garden. There are plenty of people out there that grown large amounts of food is container garden right on there porch.


Welcome to Retirement!!

To some these ideas may seem a little far fetched but if you really put your mind to it and are willing to do what it takes then there really is no reason you can not retire early even without a saving. No you probably won’t be lying on a beach drinking margaritas all day but you could live a simple and enjoyable life doing the things you love.



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