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

Post a Comment

Popular posts from this blog

Stock Market & Options Trading Courses for Aussies – Start Today with Andrew Baxter

  If you're looking to take control of your financial future, understanding how to invest in the stock market and trade options is a powerful step forward. For thousands of Australians, Andrew Baxter’s trading courses through Australian Investment Education have become a trusted pathway to building real wealth, gaining confidence in the markets, and creating long-term financial security. Why Learn to Trade Stocks and Options? Investing in the stock market isn't just for Wall Street professionals. With the right guidance, anyone can learn how to trade smartly and responsibly. Stock and options trading allows you to diversify your income, build a robust portfolio, and take advantage of opportunities in both rising and falling markets. However, without proper education, jumping into the markets can be risky. That’s why structured training, especially from a seasoned professional like Andrew Baxter , is essential. His courses simplify complex strategies, helping beginners and expe...
Post a Comment
Read more

Australian or U.S. Stocks: Which Delivers Better Returns? | Andrew Baxter Insights

  In today’s fast-changing market landscape, knowing where to invest your money has never been more critical. Both the Australian and U.S. stock markets offer unique advantages, but understanding their differences can give investors the confidence to make more informed decisions. This article explores key distinctions, market trends, and essential factors to help guide your investment strategy. The Power—and Pitfall—of Local Bias Australian investors often gravitate toward domestic equities, and for good reason: there’s comfort in familiarity. Local companies are household names, operate in a shared timezone, and are heavily weighted in Australian-managed funds. This can create a home-country bias that leads to an overweight in Australian stocks. However, Australia's market represents less than 2% of global equities, while the U.S. accounts for nearly 45%. A globally balanced portfolio should reflect that reality—though in practice, many portfolios fall short. Performance Snapshot:...
Post a Comment
Read more

Andrew Baxter Decodes the RBA’s Latest Rate Move and Its Effect on Everyday Aussies

  Australia’s economic rhythm has shifted once again. The Reserve Bank of Australia (RBA) has delivered its second interest rate cut in the current cycle, prompting a closer look at what this move means for homeowners, investors, savers, and renters alike. Relief for Mortgage Holders, but Not a Universal Win For those with a mortgage, this latest rate cut offers some welcome relief. With interest rates previously climbing to combat inflation, many households have been feeling the squeeze. A 25 basis point reduction in the cash rate may seem small, but it translates to real savings—around $80 to $100 a month on a $500,000 loan, and roughly $200 to $250 for a $1 million mortgage. Still, it’s important to remember that only a third of Australian households are paying off a home loan. Another third own their homes outright, and the rest are renters—many of whom could see rising rental prices as a side effect of increased housing demand. Could Lower Rates Boost the Sharemarket? Historic...
Post a Comment
Read more