Skip to main content

How to Make the Dream of Retiring by 40 a Reality | Australian Investment Education

Retire Before 40: If your goal is to retire by the time your 40, you’ll need to follow a process that puts you ahead of the bunch. The following is your go-to, step by step guide on how to put down the tools by 40 years old.

A dream, but with a deadline

The dream to retire by the beach sipping cocktails on a Wednesday afternoon is one we all crave, albeit the economic experts say most people of our generation will be working until they’re 80… that’s right, 80! The question arises, how do you move this deadline forwards by 4 decades or so to retire by 40? The answer: by following a distinct process with some structure and methodology to get ahead of the game. Here are 5 tips to ensure you arrive at the party before it even starts.

Step 1: Find out what retirement really means to you

Most think retirement is about having enough assets to keep you comfortable into the future – the fact is: once you get to the level of retirement, the game changes significantly. This game changes so much that it’s not about you versus your bank account, it’s about you versus you. Being completely retired and drinking Pina Coladas on the beach, being able to step out of the office when you want, or having the freedom to travel 6 months of the year are all forms of retirement. For the labour or love, you have to find out what you want and what you’re working for.

As host Andrew Baxter describes when he retired at 29 only to play golf every day and develop a serious love affair with the fridge, ‘it wasn’t what I expected it to be…you have to have a purpose in life as well”.

Step 2: Generate enough cash flow

The trick to retirement, as host Andrew Baxter outlines, is to ensure you have enough cash flow where you don’t have to sell your time for dollars. If you can do something that gives you enough cash flow where you can buy your time back, you are already on the right track. And don’t get this mixed up – it’s not about having a stream of millions roll in each year – it may just being able to generate an extra $1,000 a week so you can work less in your primary employment. Doesn’t seem too bad, right?

Step 3: Understand and move through the cash flow quadrant

For anyone who hasn’t come across Robert Kiyosaki’s “Rich Dad Poor Dad” – do yourself a favour and read it. Amongst many wise comments made by Robert throughout this extremely successful novel, Robert created a paradox known as the ‘cash flow quadrant’. Lucky enough to tour and spend time with Robert personally over the last decade, Andrew Baxter lives by the cash flow quadrant in his business and investing life.

Here, Robert Kiyosaki talks about moving from being an employee, to being self-employed, to owning your own business and to finally to be an investor. Quite simply, as you move along the quadrant you give yourself more freedom to do what you want, with the notion of being an investor as the overarching goal.

Step 4: Invest in yourself

It is true that the best investment you can make is in yourself. Often, achieving such large goals like retiring before 40 is one that you simply can’t do on your own. You need someone to guide you through and most importantly keep you accountable to see how they can help you do this). Whether this is upskilling yourself in the investment space, finding out your side hustle, or just simply restructuring your business to make you most tax effective are all ways to inch towards retiring before 40 years old.

Step 5: Start NOW

Whether your someone who just graduated university and is starting their first job, or someone who has tens of millions of dollars in the bank – the moral of the story is to start immediately. In order to reap the rewards of freedom and travel through retirement at 40 – you’re going to have to start doing some leg work NOW.

This may come in the form of contributing some extra cash to your Super each year, having a stringent savings goal or most importantly – starting to invest. Doing each of these, as examples, are methods to set yourself free long-term. Yes, they require some tough work in the early beginning, but as we all know – money makes money. We mentioned earlier that this goal of retirement at 40 is you vs. you – you have the power to make it a reality, just ensure you have some framework around it so make sure you stay on the right track.

 

 

Comments

Popular posts from this blog

Understanding Interest Rate Cuts: How They Affect You, the Market, and Insights from Andrew Baxter

  Interest rates play a crucial role in shaping various facets of the economy, influencing loan costs, housing markets, and consumer spending patterns. Recent fluctuations in interest rates , particularly in countries like the United States and Australia, have sparked discussions about their potential impact on economic conditions in the near future. Analyzing Interest Rate Cuts: Benefits and Drawbacks Australia’s recent decision to reduce rates by 25 basis points marks the first cut in recent years, igniting significant debate over its implications. Homeowners with variable-rate mortgages stand to gain, but there are fears that the cut may be excessive. For mortgage holders, this decrease could facilitate faster debt repayment and enhance their ability to spend. Conversely, many Australians without mortgages may not experience any direct advantages from this change. On the downside, retirees who depend on interest income from bank deposits are likely to face reduced returns. Rate ...

Success Secrets of Millionaires: Learn from Andrew Baxter's Habit Guide

  If you're aiming to build real wealth, discipline isn't optional—it's essential. Becoming a millionaire goes beyond buying stocks or investing in real estate. It starts with how you think, what you do daily, and how consistently you show up. Start With Discipline: The Foundation of Wealth Building Discipline is the core habit behind long-term success . It’s not about talent or luck—it’s about consistency. Most self-made millionaires developed their wealth by doing what needed to be done, even when it wasn’t easy or convenient. You don’t need to overhaul your entire life to become more disciplined. Start small. Make your bed. Keep your workspace clean. Exercise regularly. These micro-habits build the momentum needed for bigger changes down the road. Daily Habits Matter More Than Big Goals Real success doesn’t come from dramatic lifestyle shifts—it comes from small, intentional actions repeated daily. The key is to show up, follow through, and stay consistent. When discipl...

Mastering Trading Psychology: Andrew Baxter’s Proven Habits for Rational Decision-Making

  Market volatility is a natural part of investing—but how you react to it can be the deciding factor between success and failure. Beyond data analysis and market trends lies a deeper driver of every trading decision: trading psychology . While many traders are equipped with technical skills and strategies, it’s emotional discipline that separates the average investor from a consistently successful one. The Impact of Emotions on Trading In periods of intense market movement, emotions like fear and greed often override rational thinking. This can lead to panic selling, chasing trends, or complete inaction. When emotions dominate, following a trading plan becomes difficult, and decision-making deteriorates. Successful traders understand how these emotional responses influence behavior. They know that even the best strategies can fail without the ability to manage psychological pressure. The Market Timing Myth Trying to perfectly time the market—buying at the lowest point and selling...