Want to retire early as a millionaire? You can do it by either being smart, working hard or even better, doing a little of both. The key to success is taking action and starting early. If you start thinking about retirement early, you can have great success.
Let’s take a look at how the average young adult can plan to retire with the help of a ride sharing service like Lyft.
What Is Lyft & How Can They Help You Retire Early?
San Francisco based Lyft is a ride share company that operated in over 600 cities in the United States & Canada. Users simply download an app and they can order a driver at any time of day. This is a great opportunity for you.
What they can give you is an opportunity to earn in your spare time. Just get approved with Lyft and you can earn money driving people around your city. The best thing is that you can set your own hours which makes it the perfect way to make a side income. Lyft says that you can make around $19 an hour by driving for the app.
Wait a minute $19? How is that going to make me a millionaire? You have to do the math and take into account the power of compound interest and a good investment savings account.
Let’s Do The Math On Lyft
Let’s say that you work 10 hours a week driving people with Lyft, The app gives you the ability to work when and where you want, so this is not a hard thing. At $19 an hour, you will earn $190 a week. Over the course of a 50 week work year, that is $9500 a year or $791 a month.
Assuming you have another job that pays your bills, we will be putting all of this money into an investment account. Let’s give you a modest rate of return of 5 percent. In 37 years, you would have $1,022,243. If you started driving for Lyft as a 20 year old, you would retire a millionaire at the age of 57. Not bad for working an extra 10 hours a week.
Yes, it is a long road but retiring in your 50’s is a huge accomplishment for anyone and doing so as a millionaire is hard to beat. The math here also does not take into account any of your savings from your regular job.
Want to speed up the process, add an additional $200 a month from your 9 to 5 and you would have your first million in just 33 years. Add $400 a month and retire with $1,000,774 in just 30 years.
This is the power of compound interest but you have got to get started early. If you plan on retiring in 30 years, money that you save in your 20’s is worth much more than what you contribute in your 40’s.