How can you retire early?


Welcome. In today’s article, I want to present my views and learnings about Retiring early. I got this thought of early retirement via YouTube channels and from the book “Psychology of Money” by Morgan Housel and “Rich Dad and Poor Dad” by Robert Kiyosaki. Let’s jump in!

What is Retirement?

Let us see a general definition of retirement. One must work till the age of ‘60’ and then stop doing the job. Why 60? It is the most accepted age in the world for retirement. There might be some exceptions. In the majority sense, retirement is seen as an age barricade to work. Let us see it differently.

In the resources mentioned above, retirement is seen as something related to time and money but not age. Both time and money sense are interrelated. Let us see how.

1. In Time sense

At first, we will define a job in the time sense. “It is to rent your time for money”. Don’t ever see your job as your destiny. See it in the above way. I want to remind you of the infinite money theory. Are you going to do the same degree, course or job if you have infinite money?

I’ll define retiring in the time sense for you. It is to have the freedom of not renting your time for money without your admiration. I call this “Time Rich”. This synopsis is derived from “Psychology of Money”.

2. In Money sense

I want to take out a lesson from “Rich Dad and Poor Dad”. In this book, Robert said income is of 3 types.

  1. Active
  2. Passive
  3. Portfolio

If your Passive and Portfolio income is greater than your Active income, you can retire. You can find the meanings of these three in my previous articles. Still, I’ll give a brief meaning. Active income means, the income generated by renting your time and putting effort. The opposite is passive. Portfolio income is from financial markets.

I will explain this in a broader sense in the next section of this article.

Broader sense- Time Rich

In my previous articles, I talked about becoming time rich. I’ll attach the link at the end for you. You achieve time rich by building wealth. My definition of “Rich” means to have the freedom to spend the way you want. It can be time or money.

Wealth building is essential in becoming time rich. How to do that? by saving and investing. It looks simple and easy but it isn’t. Wealth is what you don’t see. It is not a big house or a luxurious car. It is hidden in your Demat account or bank account.


In the previous section, I mentioned about freedom to spend. What is it? and how to achieve it? Let us see this with a scenario.

You got your monthly salary credited to your bank account. You want to buy expensive headphones to listen to music. But you have many obligations like EMI for home, phone etc and someone in your family is sick and the hospital bill is awaiting. You can see circumstances succumb you to postpone your headphones.

You might have bought headphones if you had an emergency fund and insurance and had not taken a home loan or personal loan. I am not against loans. There is a calculation in taking loans. Are you following it? Are you sure that all your necessary expenses including EMI do not exceed 50% of your salary? This difference makes you time rich.

Buying Time with Money

Let us see another scenario, You and your husband/wife are working in a metro city. After a hectic workday, imagine cleaning your house washing utensils and clothes with that exhausted brain and body. You went on a search for a maid. Every maid in the city is charging 8000 rupees on average and you find it too much.

You tried doing those works on your own to save money and you became frustrated one day. So you finally succumbed to paying that hefty amount to the maid. Previously it took 2–3 hours every day to do that work and now you have that as free time. You can do whatever you want with that time.

That is called Time rich. You buy time with money. This is a daily affair. You are buying 3 hrs daily by paying 8000 monthly. How fascinating it is!!. Let’s look at the larger life. How much money do you need to pay to free yourself from the job and have control over every second of your life?

Calculate all your future obligations like Children’s education, marriage, health emergencies, pension etc. Calculate a certain amount and adjust it to inflation every year. The day you have that amount you are free to design every second of your day. let us call that amount as Freedom Fund.

Story of Ravi

Let us calculate Ravi’s Freedom fund. Ravi is 21 and he just started earning. Let us see what his aspirations are. A big house, A luxurious car, A pension fund, an Emergency health fund, a Children's education and marriage fund and a Travel fund.

In India, you can have a very big house and luxurious car for 2Cr. A travel fund of 2Cr, a Children’s education and marriage fund at 3Cr, a health fund 1Cr and a pension fund of 4Cr. These are all assumptions and you can make yours.

So, In total Ravi needs 12Cr rupees to free his entire time. With this amount, he can have a monthly pension of 1L+ and his children’s education and marriage are sorted. Any health emergency in future is also looked after. Money to travel is also sorted. If he has this amount, he can literally be worry-free. He doesn’t need to work at all.

Let us assume he achieved this at age 45. What will be 12Cr then? 50Cr adjusted to Inflation. That means Ravi needs to have 50Cr with him by age 45 to retire. The early you achieve, the lower the amount. Don’t ignore inflation. All these funds need to grow more than inflation. That’s the catch.

So, make yours.

For Ravi to achieve this fund at 45, he needs to invest 2L+ every month for 20 years growing at an 18% compound. How tough it is?

Don’t pull the goal post

This is derived from “Psychology of Money”. Imagine, a footballer came close to a goal post and was ready to hit. Then suddenly goal post is dragged back and he needs to run further. How frustrating it is?. Similarly, don’t pull your financial goal post.

The higher you aim, the more difficult it becomes. Take the example in the previous section. Imagine Ravi needs just 5Cr instead of 12. He can achieve that with much ease and much earlier.

Try sticking to a lifestyle and never run behind an ultra-luxurious lifestyle. That lifestyle you aspire should be achievable with decent efforts and in a decent time.


So, in conclusion, I want to say is to save and invest not goal-based, but milestone based. Invest for milestones and you can free your time. Remember the definition of Retire is to gain freedom and also remember to set a goal post and not drag it.

Being retired means being Time Rich every second of your life.

Thanks for the read and if you found any value in this article, please consider following me. See you in my next article. Bye-bye!


  1. — Akhat Shrivastava
  2. — Akshat Shrivastava
  3. Akshat Shrivastava
  4. “Psychology of Money” by Morgan Housel
  5. “Rich Dad and Poor Dad” by Robert Kiyosaki.

Picture Credits:

  1. Photo by Huy Phan:
  2. Photo by RODNAE Productions:
  3. Photo by Sohel Patel from Pexels:
  4. Photo by Moose Photos:
  5. Photo by Anastasia Shuraeva: