The premise behind retiring early is investing your money to the point where your investments are making enough each year for you to live on. Then you are ready to retire.
These investments could be stocks, bonds, real estate, or any other type of investment vehicle.
Get to know your savings rate: how much you make, minus your expenses. If you spend 100% of your income, you’ll never be able to retire because you’ll never be able to invest any money that will earn money for your retirement. The goal is to get to the place of living in a way in which you don’t need to make any additional money.
The percentage of your income that you can save annually has a direct impact on how many years until you’ll be able to retire. If you want to retire in 10 years, you need to invest 66% of your income.
Cutting your spending rate is way more powerful than increasing your income.