The key to financial success—and let’s face it, freedom—is discipline. It’s not enough to vaguely understand how much money you’re making. Sandra mentioned on the Good Neighbor Podcast that many people dream of retiring early but haven’t actually reviewed their finances to see if it’s realistic.

Retirement at any age is possible, whether at 50 or 65, but you need control, precision, and clarity in every cent that passes through your hands. That’s why establishing a budget is non-negotiable. You reallllly want to know when you can retire? Know how much you’re saving, and more importantly, how much you can afford to save. Let’s break it down, piece by piece.

Discipline in Budgeting is Everything

Most people live paycheck to paycheck because they don’t understand how to control their spending. They make approximations of their expenses. It's sloppy, and it leads to failure. Not you. You’re different. You want precision. And that starts with a budget.

Take an unflinching look at your finances, stare your finances in the face. What are you spending money on? Mortgage? Rent? Insurance? Luxury purchases? Entertainment? All of these need to be categorized. Then, compare these expenditures with your income. If you’re spending more than you’re earning, something needs to change. It’s brutal, but it’s necessary. You’ll either cut the excess, or you’ll make more. There’s no other way.

Maximize Savings: Know Exactly How Much You Can Afford

Once you’ve locked down your expenses, the next move is determining how much you can save. There’s no guessing here. You need a hard calculated figure. Aim to set aside at least 15% of your income. But for the ambitious? Push it higher. Push yourself harder.

Consider your age. Your savings strategy should be directly linked to how many years you have left before retirement. Do you have two decades? Three? If you’re younger, you have time on your side, which means you can grow your wealth exponentially. The more time your investments have to compound, the more money you’ll rake in. The earlier you start saving, the larger the prize.

And if you’re nearing retirement age? There’s no room for error. You need to get aggressive. You don’t have the luxury of letting your money work over time. You need to make big, bold moves, and you need to make them now.

When Can You Retire? That Depends on Your Savings Discipline

When can you retire? It’s not a question of age. It’s a question of how much you’ve saved and how much money your savings can generate for you. You’re going to calculate your retirement expenses based on the life you want to live—not some watered-down version of it. Travel, fine dining, high-end real estate—whatever you want, factor it in.

Most people follow the 80% rule, assuming they’ll need 80% of their pre-retirement income to live comfortably. But are you aiming for comfort or domination? Are you retiring to fade into obscurity or to live the life you deserve? Don’t settle for 80%—factor in more.

Use the Women Financial Power retirement calculator to determine exactly how long your savings will last. The 4% rule suggests withdrawing 4% of your nest egg annually, but that’s for the timid. You’re going to do better than that. You’ll know exactly when to retire once you see the cold, hard numbers.

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