The 10-Step Guide to Early Retirement and Financial Independence on a Low Income

Financial independence and early retirement are within reach of anyone earning just above minimum wage and who is willing to work for 15 years and follow this 10-step early retirement plan. Buy land, build a home, buy a new car, retire early and comfortably. Read below to learn how.

Created upon request, this article is being written at the insistence of readers of this column's previous "Retire Early" articles who have requested an easy step-by-step guideline toward becoming financially independent and retiring early.

This easy-to-follow 10-step process is a complete guide that enables the low income wage earner (between $8 and $10.75 per hour, full time) to become financially independent and retire in only 15 years**. Two wage earners can work together to execute the below 15-year early retirement plan, each making $10.75 per hour, or one person making $21.50 per hour. If the wages are less than $21.50 per hour (2 people combined or one single worker), early retirement and financial independence are achieved at a slightly slower pace** (table below).

The table at the end of this article shows how much to invest monthly to build a retirement fund (about $400,000) which provides an annual retirement income of over $31,000 for varying amounts of hourly wages ($8 through $10.75). With total monthly living expenses under $500 (detailed below), the $31,000 retirement provides a very comfortable lifestyle with sufficient cash for travel, entertainment, giving, and sharing. It is far easier to live in a new home on $31,000 in an area of low taxes and low cost of living than it is to live on $80,000 near a metropolis where the cost of living is high. This is explained below in detail.

The 5 Prerequisites:

Prior to starting the below steps toward financial independence and early retirement, some prerequisites must be met. Do not attempt to execute the below 10-step early retirement plan if any one of the prerequisites is not met.

1. To retire in 15 years, annual earnings of $44,720 are required. Lower earnings will require more time (see table** below). This can be accomplished if two people work together, each making $10.75 per hour ($21.50 per hour combined) for an average of 40 hours per week. If 2 workers make $8 per hour ($16 combined, or $33,280 annually), they can retire in 21 years. Review the table at the end of this article for varying amounts of hourly earnings.

2. One wage earner must have financial credit sound enough to qualify for a $50,000 loan (detailed below).

3. The wage earner(s) executing this 15-year early retirement plan must be free of unhealthy and expensive habits and must be in good health in order to keep both medical and food expenses to a minimum. This means that the wage earner(s) follow a healthy, inexpensive diet found at WellBeyond100.com and the wage earner(s) are not obese, which can be determined by answering 2 confidential questions at ThinAndHealthyForever.com

4. The wage earner(s) must be able to adhere to a strict budget (below) and have the ability to live frugally for 15 years while building the capital investment that will make early retirement and financial independence possible.

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The 10-Step Guide to Early Retirement and Financial Independence on a Low Income