My Reaction to How to Retire Early (Book)

Recently, a reader pointed me to How To Retire Early: Your Guide to Getting Rich Slowly and Retiring on Less by Robert and Robin Charlton. She mentioned this book is an example of the type of information that can be helpful to readers as they pursue and achieve financial goals.

According to the book and its charts, the authors accumulated over $900,000 (on a relatively modest combined income of less than $100,000 per year for most of their investing years), retired early at age 43, and began traveling the world. You can see where they’ve been at Where We Be and learn about their investing, frugal living, and retirement journeys.

Your Net Worth Goes Up When You Take These Actions

>When I was younger, I wrestled with whether to pay off debt, build a cash reserve, or invest for the long-term future? Each was important. Yet, they seemed like conflicting, even mutually exclusive goals.

For example, if I paid extra on any credit card balances or my mortgage loan, then I’d have less cash in the bank or fewer dollars to contribute to retirement and college-savings accounts. I could earn a guaranteed return that is equal to loan interest rates if I paid down debt. But then I’d forgo the potential for compound growth in the stock market.

What I learned was that a positive move — whether making a loan payment, increasing my cash reserve, or investing for the future — can increase my net worth. I don’t have to choose the best move to make. I simply have to take one of these actions and, at the same time, avoid taking on additional debt or spending more than I just saved.

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