{"id":235078,"date":"2025-10-23T18:58:12","date_gmt":"2025-10-23T18:58:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/235078\/"},"modified":"2025-10-23T18:58:12","modified_gmt":"2025-10-23T18:58:12","slug":"3-things-to-stop-doing-right-now-if-you-want-to-retire-early","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/235078\/","title":{"rendered":"3 Things To Stop Doing Right Now if You Want To Retire Early"},"content":{"rendered":"\n

Retiring early sounds like a dream, doesn\u2019t it? All that time to travel, visit friends and family, or start a new hobby. But dreaming about it and making it a reality are two very different things. To retire early successfully<\/a>, you need to embrace smart practices \u2014 which means cutting out the habits that hold you back<\/a>.<\/p>\n<\/p>\n

For You: Here\u2019s How Much You Need To Retire With a $100K Lifestyle<\/a><\/p>\n

Learn About: 3 Advanced Investing Moves Experts Use to Minimize Taxes and Help Boost Returns<\/a><\/p>\n

But how do you know what to stop doing if you want to retire early? There\u2019s a lot of advice out there.<\/p>\n

If anyone knows how to separate unhelpful financial habits from the ones that actually accelerate wealth, it\u2019s Marc Russell<\/a>. The financial coach and founder of BetterWallet<\/a> excels at cutting through online chatter with commonsense strategies. He has a clear-eyed take on what you should stop doing to fulfill your dream of early retirement.<\/p>\n

As part of our Top 100 Money Experts<\/a>\u00a0series, GOBankingRates caught up with Russell to learn more about the habits to drop \u2014 and which attitudes to embrace \u2014 if you want to retire early.<\/p>\n

Russell describes building wealth<\/a> as stacking the right habits \u2014 which means retiring early is about avoiding the wrong ones. To him, the leading bad habit \u2014 which he calls \u201cthe No. 1 enemy of early retirement\u201d \u2014 isn\u2019t a lack of income. It\u2019s letting that income get sucked into things you don\u2019t need.<\/p>\n

In other words, keeping up with the Joneses could keep you from achieving early retirement. Russell breaks it down in terms of your financial independence, retire early (FIRE)<\/a> number \u2014 or, roughly, the amount of money you spend every year multiplied by 25.<\/p>\n

\u201cRetiring early is tied directly to your annual spending. If your lifestyle costs $80,000 a year instead of $50,000, your FIRE number jumps from $1.25 million to $2 million,\u201d he said. \u201cThat\u2019s years of extra work, all because of lifestyle creep.\u201d<\/p>\n

If the siren call of the latest trend tempts you to open your wallet, Russell wants you to remember one simple truth:\u00a0\u201cEvery extra dollar you spend today is another day you push back retirement.\u201d<\/p>\n

Read Next: Dave Ramsey Warns: This Common Habit Can Ruin Your Retirement<\/a><\/p>\n

Another unfortunate error that holds people back from early retirement is getting hung up on finding the hottest stocks instead of embracing a more holistic approach to investing<\/a>.<\/p>\n

Russell reminds readers that even professional managers with research teams struggle to \u201cbeat the market.\u201d So your odds of finding instant success by chasing the stock everyone on social media is hyping are slim.<\/p>\n

\u201cBroad market index funds<\/a> give you diversified exposure and reliable growth,\u201d he said. \u201cRetiring early doesn\u2019t happen by hitting home runs; it\u2019s about getting on base every single month.\u201d<\/p>\n

Steady growth over time may not be as glamorous as sudden market success, but it\u2019s far more practical \u2014 and achievable.<\/p>\n

Russell is concerned that too many people aren\u2019t proactive about early retirement. They\u2019re saving, but they don\u2019t have a clearly defined strategy in place. Some imagine that one day they\u2019ll open their savings account and magically see the right number.<\/p>\n

Real life doesn\u2019t work that way. If you\u2019re not actively planning, monitoring your progress, and adjusting your approach, you\u2019re putting yourself at a disadvantage.<\/p>\n

\u201cRetiring early is not an accident. You need to know your numbers, your savings rate, your FIRE number and how much your investments are compounding,\u201d he said. \u201cYou can\u2019t drift into early retirement; you have to plan your way into it.\u201d<\/p>\n

What does planning your way into early retirement look like? Instead of opting for flash-in-the-pan approaches, Russell favors a balanced strategy that emphasizes capturing \u201cfree money,\u201d automating your growth and maximizing tax breaks.<\/p>\n

If your employer offers a 401(k) match<\/a>, Russell urges you to contribute at least enough to get the full match \u2014 otherwise, you\u2019re leaving free money on the table.<\/p>\n

\u201cImagine you make $80,000 a year and your employer matches up to 5%. That\u2019s $4,000 a year of free investing money,\u201d he said. \u201cLet that compound at 8% annually for 20 years and you\u2019re looking at over $180,000. That\u2019s the easiest \u2018raise\u2019 you\u2019ll ever get.\u201d<\/p>\n

After securing the match, Russell recommends automating yearly increases to your 401(k) contributions. You\u2019ll barely notice the change in your paycheck \u2014 but the long-term payoff is significant.<\/p>\n

\u201cLet\u2019s say you start contributing 6% of your $60,000 salary. Each year you bump that by 1% until you\u2019re at 10%,\u201d he said. \u201cIn just a few years, you\u2019ll be investing $6,000 a year instead of $3,600. That extra $2,400 annually, compounded over decades, could add six figures to your retirement account.\u201d<\/p>\n

With your 401(k) on autopilot, Russell recommends exploring additional tax-advantaged accounts \u2014 but be aware of eligibility rules.<\/p>\n

\u201cA traditional IRA<\/a> lowers your taxable income today,\u201d he said. \u201cWhile a Roth IRA gives you tax-free growth if you qualify under the income limits.\u201d<\/p>\n

For those who are self-employed, there are additional options that allow higher contributions than traditional IRAs or employer 401(k)s.<\/p>\n

\u201cIf you\u2019re self-employed, Solo 401(k)s and SEP IRAs<\/a> let you contribute far more than traditional limits, which can \u2018superfund\u2019 your retirement.\u201d<\/p>\n

Russell notes that if you plan to retire before age 59\u00bd, you\u2019ll need access to funds outside of traditional retirement accounts. A taxable brokerage account<\/a> provides that flexibility.<\/p>\n

\u201cRetirement accounts are amazing, but they lock you out until 59\u00bd,\u201d he said. \u201cIf you want to take money out before that age, you generally will need to pay a 10% penalty on the untaxed amount. If you want to stop working at 45 or 50, a taxable brokerage account is your lifeline.\u201d<\/p>\n

He describes a brokerage account as the bridge to your retirement accounts.<\/p>\n

\u201cOnce you have these buckets working together, you can calculate your FIRE number \u2014 usually 25 times your annual expenses,\u201d he said. \u201cIf you spend $60,000 a year, you\u2019ll need about $1.5 million to live comfortably. That\u2019s your roadmap.\u201d<\/p>\n

To retire early, there are two additional concepts Russell says you can\u2019t ignore:<\/p>\n

To calculate your FIRE number, multiply your annual spending by 25. For instance, if you spend $50,000 a year, you need $1.25 million invested.<\/p>\n

\u201cYour spending is the steering wheel of your retirement timeline,\u201d Russell said. \u201cThis is why it\u2019s critical to budget and understand how much you spend every month.\u201d<\/p>\n

When it comes to building an early retirement nest egg, compounding is queen.<\/p>\n

\u201cCompounding is your best friend, and time is your most valuable asset,\u201d Russell said.<\/p>\n

He offers another example: If you invest $1,500 a month with an 8% return starting at age 25, that could grow to around $825,000 by age 45 \u2014 nearly half a million in growth on top of what you contributed.<\/p>\n

\u201cThat growth is what makes early retirement feasible. Without compounding, you\u2019re just drawing down your principal until it\u2019s gone,\u201d he said. \u201cWith compounding, your money keeps working even if you stop contributing.\u201d<\/p>\n

To keep yourself on track toward early retirement, Russell advises avoiding common roadblocks like lifestyle inflation, stock chasing and wishful thinking.\u00a0Retiring early takes hard work, smart planning and discipline.<\/p>\n

\u201cRetiring early means trading some spending today for more freedom tomorrow,\u201d he said. \u201cYou\u2019re not depriving yourself; you\u2019re buying your time back.\u201d<\/p>\n

This article is part of GOBankingRates\u2019 Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub<\/a> \u2014 and you\u2019ll be entered for a chance to win $500.<\/p>\n

This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.<\/p>\n

More From GoBankingRates<\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: 3 Things To Stop Doing Right Now if You Want To Retire Early<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Retiring early sounds like a dream, doesn\u2019t it? All that time to travel, visit friends and family, or…\n","protected":false},"author":2,"featured_media":235079,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,11341,133,111278,131,132],"class_list":{"0":"post-235078","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-early-retirement","12":"tag-finance","13":"tag-marc-russell","14":"tag-personal-finance","15":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/235078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=235078"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/235078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/235079"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=235078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=235078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=235078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}