Retiring early is a dream shared by many, but it often feels like an unattainable goal. However, with careful planning, discipline, and a strategic approach to financial management, early retirement can become a reality. In this blog, we’ll explore the steps to retiring early and how you can make it happen.

Set Clear Financial Goals

The first step towards retiring early is setting clear financial goals. Determine how much money you’ll need to maintain your desired lifestyle in retirement. Consider factors like daily expenses, healthcare, and leisure activities. With a specific retirement number in mind, you’ll have a target to work towards.

For many, the idea of a substantial financial figure can be overwhelming. In such cases, consider breaking your retirement savings goals into manageable stages that align with different phases of your life. By setting milestone goals for each life stage, you can incrementally work your way towards the ultimate goal of retiring early. For example, in your 20s, your goal might be to establish an emergency fund and contribute regularly to your TFSA allocations while your income taxes are at a lower grade. In your 30s, you could aim to have a specific sum saved, perhaps equivalent to one year’s worth of living expenses. Your 40s can involve increasing your retirement contributions significantly, aiming for a savings target that is closer to a specific percentage of your annual income. As you enter your 50s, your goal might be to maximize your retirement account contributions and reassess your overall retirement strategy. This approach allows you to gradually build confidence in your financial planning while reducing the stress associated with achieving a single, overwhelming retirement savings target.

Create a Robust Savings Plan

Saving is the cornerstone of early retirement. Create a budget that allows you to save a significant portion of your income. Consider automating part of your bi-weekly pay into a TFSA or RRSP. Maximize your contributions to tax-advantaged accounts such as TFSA and RRSPs, taking advantage of any employer matching contributions.

Invest Wisely

Investing wisely is crucial for building wealth over time. Diversify your investments across asset classes like stocks, bonds, and real estate to reduce risk. There is no right age to start working with a financial advisor so start young. Financial advisors help you make informed investment decisions that align with your retirement goals.

Live Below Your Means

Living below your means is a fundamental principle of early retirement. Cut unnecessary expenses and avoid lifestyle inflation when you receive raises or windfalls. Frugality can accelerate your savings and investment growth, bringing retirement closer.

Educate Yourself

Knowledge is a powerful tool in the quest for early retirement. Continuously educate yourself about personal finance, investment strategies, and retirement planning. Staying informed will help you make smart financial decisions and adapt to changing circumstances. Our last blog Teaching yourself how to invest better has options for free educational resources to leverage.

Embrace Passive Income Streams

Generating passive income streams can provide financial stability in retirement. Consider investments that offer regular income, such as rental properties or renting our your basement, dividend-paying stocks, or interest from bonds. Passive income can reduce your reliance on your savings.

Consider Part-Time Work or a Side Hustle

Early retirement doesn’t necessarily mean quitting work entirely. Many early retirees find fulfillment in part-time work or pursuing a passion project that generates income. These activities can provide structure and financial support while still allowing you to enjoy retirement.

Stay Flexible

Life is unpredictable, and financial plans may need adjustment. Be prepared to adapt to changing circumstances, such as market fluctuations or unexpected expenses. Staying flexible can help you stay on course to early retirement.


Retiring early is an achievable goal if you’re committed to diligent financial planning, saving, and investing. By setting clear goals, living frugally, and making informed financial decisions, you can unlock the secrets of early retirement. Remember, it’s not just about reaching retirement; it’s about enjoying it to the fullest. So, start today and take the steps to make your early retirement dreams a reality.