Anyone Can Retire in 10 Years —  Here’s How

  1. Investments
  2. Saving more than half

10 Year Retirement Rule

Photo by Ryan Quintal on Unsplash

There is this saying that if you invest over half of your income, regardless of your income range and considering an 8% per year return on your investments, you will be able to completely sustain yourself in 10 years.
We are going to prove that today with actual data.

But before that, let's talk about a few things —


Some might disagree on the 8% per annum interest rate on investments.
However, data shows that you would average more than 8% return per year if you had invested in any ETFs consistently.

ETFs (Exchange-Traded Funds) are like mutual funds but are actively traded during the day. Instead of handpicking your own stocks, ETF offers a pool of stocks you can invest in. As a result, your risks are significantly lowered and returns are more consistent.

Here’s a list of ETFs listed in the US stock exchange. Do me a favor and randomly pick one, observe the returns over a 5 Year Horizon.

Even as simple as investing in the S&P 500 will average you more than that, and that’s just investing in the top 500 companies in the US.

Screenshot by Author

Hence, invest consistently for the long term and don't worry about it.
Your investments will grow with the economy.

Saving more than half

How can I save more than half of my income when I’m barely getting by? — You can’t

Think of ways to reduce your expenses or increase your income. As a reference, the U.S. Census Bureau lists the annual real median personal income at $35,977 in 2019. If you’re bringing in more than that, maybe think about reducing your spending.

If you’ve been backed up into a corner and still can’t save half of your income, it's alright. Try doing 30%-40% instead. It will slightly delay your retirement, but it’s better than nothing.

With that out of the way, let's move on to the fun stuff.