How to Retire Early with Little Money? || Become Wealthy in 10 Years.

You landed on my page probably because you were looking for the ways to become wealthy in 10 years or so. You want to know how to retire early with the hole in your pocket that you currently have. If you are seeking a way to get rich quickly and easily then you’re in the wrong place. If you are serious and are willing to put a good effort in reaching your goal during the next 5-10 years, let’s look at things realistically and make a plan.

Win a lottery: flying lottery balls3 Ways to Get Rich Quick

The only 3 rather probable than possible scenarios I can think of for “Get Rich Quick” idea without breaking the law are:

  1. Win a lottery.
  2. Get inheritance.
  3. Invent Facebook, Google, Uber, or because these applications were invented before you, come up with something genius like that but entirely new. These sophomore students of the University of Maryland seem to be on the right track:

Let’s look briefly at these options:

  1. Lottery ticket with 3 numbers crossed How great is the chance to win the lottery? It’s probably very slim. How much money would you spend on tickets before you win a lottery? If you ever win, what your amount will be, and how much tax will you pay on your award? The cash to keep could easily happen to be smaller than the amount you paid over the years to buy the tickets.
    If you decide to take this route, there is nothing I can do to help you because nothing depends on you. It’s a pure chance. If you’d like to proceed this route, go ahead and buy your lottery tickets and spend a lot of money on them. This is NOT my advice, but your choice.
  2. The second option to get rich quickly was to receive an inheritance. Do you have an elderly relative who loves you dearly and is wealthy? If that’s so, you are the lucky one. However, I doubt that this is your case because you wouldn’t be searching the web for an advice on how to get rich quickly.
  3. Option# 3 was to invent something genius.
    Think outside the box sign on a chairHow old are you?
    Genius is a rare creature. Maybe you are a new Mark Zuckerberg, Larry Page, Sergey Brin, Garrett Camp, or Travis Kalanick. This is NOT a “get rich overnight” solution, but these people became rich pretty quickly. If you are in your twenties and have a special gift – everything is ahead of you: you might have such genius in you. This is the only realistic option that actually depends on you solely. Then again, what are you doing on my page? Go and create!

If you are not in your twenties anymore, wouldn’t a genie come out by now?

Then, you may want to stay with me here and see what I have to offer in order to build your wealth in a reasonable time frame.

“Wealth is the ability to fully experience life.”

~ Henry David Thoreau

Like I said, I am here to offer you some realistic ideas, help you plan your future and guide you to a solution of getting wealth within a reasonable period, let’s say 5 to 10 years. I do believe that such solutions exist but of course not for everybody and not at any age.

First, I’d like to speak with you, my young reader, who wants to get rich within the next 10 years.

I know it’s possible, and I know of young people who had it done even without M. Zuckerberg and L. Page’s talent. However, you need to give up a lot in your lifestyle. In order to build wealth, you need to have a start-up capital, which in young age means that you need to quickly save a good amount of money. Let me explain why I believe that extreme frugality is not appropriate at a young age, at least for someone like myself.

When I was in my 20s and 30s, I already had a family and responsibilities and yet, I wanted to enjoy my youth. I did not want to save every penny. Like most young people I wanted to socialize and entertain myself. Parties, concerts, travel, sports, different courses per interests – all of that requires money, but these experiences make your life happy. And of course, all that after taking care of your bills and other financial responsibilities. I wanted to live the life to its fullest. I truly believe that young age is for education, fun, and enjoyment (and a hard work to support all that). I can’t suggest saving for the future by taking away from the present. Why would anyone sacrifice the best time of their life for money in the future? What do you need money for if not to live and enjoy the life?

A concert: young people celebrating music

While extreme frugality is a proven working solution for gaining wealth, it’s against my own nature. Therefore, I will not spend more time discussing this approach in this article. Young people, experience life, be kind and generous, make mistakes, experiment with ideas, fall down and get back on your feet, move onward and upward.

Also, when you are young, your expenses are higher than when you are older, while your income is lower. You may go to college. You may have to pay your student loans. You may buy a house and pay the mortgage. Then, you build a family and raise your children. You want to help them with their education. Those are your needs, and in order to accomplish them, you need to plan smartly and earn good money.

The X-Curve showing dependencies among age, wealth and responsibilitiesI’ll help you with planning ideas in another post. But, while you have so many needs and obligations, savings on top of covering all current expenses, would be more complicated. Unless you manage to earn way more than an average young professional, I suggest that in your late young age worry about having enough to cover your and your family needs, spend some extra on social life and entertainment and put aside as much as you can for your financial freedom in your older age. That’s on its own is already not easy to accomplish.

Do start saving while you are young. Put aside as much as would not significantly affect your lifestyle: little is better than nothing.

First, you’d need some emergency fund, which is an easily accessible lump sum – 3-6 months of your monthly income. I recommend keeping this fund in a money market account – you may find an interest rate that will keep up with the inflation rate. Once monthly pay x 6 amount is reached – forget about this account, don’t touch it! – it’s your emergency fund, remember? And the emergency is when you can’t receive your monthly income due to injury, illness or other cause of the loss of a job.

Then, start contributing to qualified retirement plans (especially if your employer makes a matching contribution!) and/or investing on your own.

Your young age is your advantage. Even before an early retirement you still have 20-30 years of work ahead of you (unless, like I said above, you want to be that extreme saver). Those, who think ahead and plan early can achieve greater results with less effort. That’s you! So, continue reading and take my advice for older people now: you don’t have to wait until you are 40+; you can start at any time, and proceed at your comfortable pace.

Become wealthy in 10 years.

If you are over 40 years old and would like to improve your financial situation in the next 5 to 10 years, then let’s talk about your plan, my dear reader. Would you like to maybe even retire early? Let’s look into what you can do to accomplish this.

Retirement by definition is “the fact of leaving one’s job and ceasing to work”. Let’s see what happens if you retire at 50. Do you really want to stop working completely at that age? I promise you that even if you had many hobbies, you’d still be bored in no time. Let’s consider retirement as leaving a job that you don’t enjoy doing, stopping working the hours you don’t feel like working, staying away from the long commute, uncomfortable workplaces, and unappreciative bosses.

A man in a suit with 3 pairs of arms holding something in each: a pen, a phone, a notebook, etcAt this age, our goal is to supplement our day-job with additional sources of income and eventually replace the job we want to retire with what we start up today. Please remember that you are not eligible for your social security payments until you are 62 years old, and you can’t withdraw money without penalties from your qualified retirement plans until you are 59.5 (with the narrow exceptions to this rule).

When you eventually reach the retirement age and are able to use your 401K/403b/IRA funds, you also want to be flexible and take into account the Market fluctuations. All financial advisers recommend being conservative in your investments when you are close to your retirement age. Why? Because if you must take your money out when the market is down, your conservative portfolio will not be at loss as much as an aggressive one, but still it will lose some. Isn’t it better to have flexibility in income sources and not withdraw money at all from the accounts involving investment risk while the economy is down? If you can avoid an immediate need to withdraw your money, you can invest aggressively at any age, do you agree?

A diversity is always a clever idea, and diversifying your income streams is a very practical approach.

There are 3 types of income:

  1. Active income
  2. Passive income
  3. Investment income

Before retirement, the majority of us mostly rely on the active (earned) income. In order to retire, we need to assure that about the same amount of money is coming in from the passive and investment income. As discussed above, your savings were invested and produce some income. But if you share my views in respect to the value of life experiences and did not practice an extreme frugality in your 20s and 30s, you probably didn’t invest enough to fully rely on this one source of income. It’s okay. We don’t want to rely fully on the stream of income under the investment risk. That’s the reason to establish the dependable sources of the passive income before we retire.

And… as we spoke at the beginning of this chapter, you’d get terribly bored if you retire your day job and don’t work at all. You’d be much better off working from the comfort of your home on your own part-time schedule producing something you are passionate about. Therefore, I suggest starting your own part-time business while you are still working your day job. What kind of business? The kind that will result in a passive income in a few years.

According to Investopedia, the definition of “passive income” is: “earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved.”

Limited partnership and rental property assume the availability of the initial capital. But I promised to give you a tip on how to retire early with little money. So, how to make a passive income then? Well, there was this third option in the definition: “…or other enterprise in which a person is not actively involved.”

The one win front works smart and hardYou would need to start working smart and hard today in order to create passive income for the near future. Depending on your personalities, a preferred style of learning and working, it could be an online marketing business or face-to-face work with customers and partners under MLM umbrella. Neither option is an easy work at the start, but either choice requires low investment (definitely under $1,000.00), may produce supplemental income in a relatively short period (6 months to 2 years), depending on how many hours and how much energy you can dedicate to it, and either one creates a passive income source for the future.

However, there is a lot of scams in each of these fields because scammers find it easy to use online marketing or direct network marketing business model to cover their fraud. I’ve done my own investigation, and have my preferred solution for either of these two types of business.

World Financial Group offers analysis of your personal financial situation via personal private conversations as well as group meetings on the financial literacy in an office setting or online webinar. WFG associates are all licensed insurance producers. Their license types differ based on their interests and experience. If you decide to take this path and become WFG associate (or company’s client as their products are also a good addition to the variety of the retirement income sources), there will be much to learn, but this education provides you with the ability to knowingly build your own financial freedom and help other people to do the same. This is a very rewarding work. Also, this MLM offers great support in growing and promotion to its “downline” associates and a reliable passive income to its “upline” partners. There are no prerequisites to start, and overall investment, including license fees, is under $500.00.

Click here to read my detailed review of WFG.

Wealthy Affiliate is an all-inclusive platform, which provides step-by-step training and easy-to-use tools to build your own website and start an Affiliate Marketing business online. Click here to read my review. Start time-unlimited FREE membership to familiarize yourself with this incredible company. You would want to upgrade to the Premium membership and take advantage of all resources WA has to offer because affiliate marketing is only a small part of the wealth of knowledge available at WA. The first month of the Premium membership is offered at the discounted price of $19.99, and then $49.00/mo. Annual membership is $359.00 (which comes to $29.9/mo) and the owners run Black Friday deal every year, which reduces the annual membership price to $299.00.

How to make a passive income - ask Wealthy Affiliate UniversityWA world-wide community is fantastic! People help each other and there is no competition because everyone chooses own niche in accordance with personal interests, and even members within the same niche collaborate and don’t compete because there are 2 billion Internet users – enough for every affiliate marketer. Some WA members share their success with the community, some don’t. Like in real life, it is not appropriate to ask people in the live chat how much money they make. However, when they write blog posts, I bookmark their success stories. They are very different: some are sharing their happiness when they made their first sale, others share when they reach certain milestones: $500.00/mo, $1,000.00/mo, $10,000/mo … Website sold for $12,500.00, website sold for $38,479.00… But this one achievement I’d like to share with you. I have to admit that I don’t see those every day, but they are possible!

I Never Really Expected to Build a Million Dollar Company

Dom joined Wealthy Affiliate in August 2012 and in 2017 his company made over a million dollars in revenue.

Retire Early with the Confidence in Your Financial Well Being.

Well, even a $1,000.00/ mo is a good supplement to your day job earning. But don’t stop on a thousand. When you start receiving 6-digit annual income from your business, maybe it’s time to quit your job.

Toy couple in a hammock with magazines: work smart, don't work hard You can run your business until you enjoy doing so. If you decide to slow down before your retirement age, you’d still have your passive income from the work you’ve done these years building your business. The team you created in MLM will still share with you a percentage of its earnings. The blogs you posted a long time ago will still bring you commissions. And you can now start something completely new – for example, create some artworks as a hobby. The good thing is that you would do it for your own pleasure and entertainment, but you don’t have to keep all your work for yourself – you are now an expert in selling products online or offline.

Use your passive income for living, still work a little just to keep your business alive, sell your hobby, enjoy your life! If you are in online business, you can run it from everywhere in the world. You can work on a beach or in a park on a nice sunny day.
Older couple dancingWhen the time comes and you reach full retirement age, you’d be able to supplement your active and passive income by social security paychecks and decide when is a good time to use your invested savings. If you purchased from WFG good insurance products with cash value, that’s yet another stream of your retirement income.

Bottom Line.

Enjoy your life – that’s the most important thing. Building wealth and skipping years of beautiful youth is nonsense.

Three young people are in the air jumping

Balance is the key. You do need to think of your financial stability and sufficiency starting at a young age. Don’t go partying too crazy! Enjoy your social life but remember your needs and responsibilities. Educate yourself and let curiosity guide your way. Spend money on experiences, save on things. Retain leftovers and invest.

In your mid-age, work hard and smart to build wealth. Passive income is the must. There are only so many hours a person can work per day. Hourly pay, even if high, is still limited. Create income streams where you can keep earning continuously on the work done once.

The two legitimate and very helpful passive income opportunities I recommend are World Financial Group and Wealthy Affiliate.

Variety of income streams assure flexibility and ability to invest aggressively without making age adjustments.

Put your hobby to work in your financial favor.

Thank you for reading. I hope you found some value in my advice. Please share your thoughts in the comments below. Are you a spender or a keeper? Do you value experiences, prefer things, or would rather save for later? I’d be pleased to hear what you think and what your lifestyle is. If you have any questions for me – don’t hesitate to ask them below. If you need to contact me privately, use this form to email me.

10 thoughts on “How to Retire Early with Little Money? || Become Wealthy in 10 Years.”

  1. I would prefer retiring by winning the lottery. Especially winning something like powerball where I could win 10’s or 100’s of millions of dollars. Nice to dream but I don’t waste my money on these things.

    I’m working with WA for a few years now and I have a nice passive income going. I’ll keep working it. In a few more years, I’ll be looking at my current job and going with something more flexible.

    • Hi Steve,

      Thank you for stopping by and saying “hello” 🙂 I know, winning a lottery would be cool, but I personally know nobody who actually won. I do know several people who spent a fortune trying, though. 

      I am glad to hear that you were able to generate some passive income using WA services. Thank you for sharing your positive experience: it sounds encouraging.  I hope that you’ll be able to quit your job and enjoy the flexibility of your online business and its earnings. 

      Wishing you great success,

      ~ Julia 

  2. Hello Julia! I so enjoyed reading this article! And you are so right no matter our age… life is to be lived to the fullest with every aspect of wealth. I am also a member of Wealthy Affiliate and it has changed my life. Thank you for such an upbeat post. In peace and gratitude, Ariel

    • Dear Ariel,

      Thank you so much for stopping by and making a comment! I agree that Wealthy Affiliate changes lives: not only it’s easier to breathe and avoid stress when there is an extra check in your pocket and a little more financial freedom, but also many people eventually get to the point where they don’t have to work their day job. Then, it’s a whole new lifestyle: full flexibility and you love your boss. 🙂

      All the best,
      ~ Julia

  3. Julia this is excellent for information and encouragement both! Anyone who follows your advice here will be sure to succeed!

    • Hello DianneBee,

      Thank you. I am glad you found my article encouraging. I hope this information changes some lives to the better.
      Best wishes to you,
      ~ Julia

  4. Hi Julia. You have provided great information on two promising sources of income that I found helpful. I also noted that you began to give tips on savings, and I believe that is very important. I am looking forward to the next tips.

    • Dear Tanya,

      Thank you very much for your feedback. I will certainly continue giving tips on saving, budgeting, living debt-free, etc. In my experience, a lot of American young adults have no money skills at all. It feels like a gap in education for teenagers in school and at home… As a result, kids start their independent life unprepared and make lots of mistakes, which badly affect their financial freedom in the future. We need to learn at every age, but the earlier we start, the easier it is for us to build our financial stability, security, and wealth for our own present and future.

      Wishing you a healthy and prosperous future.

      ~ Julia

  5. Great post, Julia! I’d prefer the easy way out by inheritance, but got no rich relatives, and if I did, someone else would get it. Tried the lottery – couldn’t win that. So, I’m left with working and that didn’t work in the physical labor part; all that’s left for me is online business and 5 to 10 years hopefully.

    • Hello Fred.

      Thank you for reading my blog and for your comment. Though, you sound very sad in it. I know, not many of us are lucky to get wealth without working. It sounds like something happened that prevents you from the physical labor. I am sorry if that’s so. However, online work is a great option! It allows you to choose the field of your interest, work in a comfort of your home on a schedule that suits you best and for a boss you love! ? Don’t be sad – it’s a dream work! I wish you a great success!

      ~ Julia


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