Follow this step-by-step process to retire early than 99% people

Retiring early, a dream many cherish, is often seen as an unattainable goal. The mere thought of breaking free from the shackles of a 9-to-5 job and achieving financial independence appears as elusive as chasing a rainbow. 

But is it really unattainable? 

Can early retirement be within your grasp? 

In a world where many are consumed by financial stress, there are practical strategies and insights that can help you achieve early financial independence. 

In this blog, we will delve into precisely this topic, sharing practical insights and strategies that have been personally used to attain early financial independence.

What's Covered in This Blog:

Let’s break down what we’ll be discussing in this blog:

• The 90-9-1 Rule: 

  • Understanding the rule and how it applies to various aspects of life and investments.

• The Retirement Planning Math

  • What steps do you need to take to do your Retirement Planning Math

• The Role of Inflation: 

  • How inflation can impact your retirement planning.

• Asset Allocation: 

  • The importance of diversifying your investments.

• Assets to Consider for your Portfolio

  • What assets should you include in your retirement portfolio.

• Actionable Points for Setting Your Retirement Goal

  • How can you get started today.


The 90-9-1 Rule:

The 90-9-1 rule, a concept widely applicable across various domains, underscores the importance of understanding how most people use their time and resources. 

This measures user participation as follows [1] :

  • 90% of users are lurkers (They read or observe but do not contribute)
  • 9% of users contribute from time to time  (But other priorities dominate their time)
  • 1% users participate a lot and account for most contributions

In this context, it helps us realize that only 1% of individuals are effectively using the internet to create wealth. This understanding is crucial for those seeking financial independence.

In the context of gaining Financial freedom, if you dont know about Inflation, and other factors that affect your money, then you are doomed from the get go. 

For eg: Medical Insurance Premiums in India have surged by 10-25% this year [2] and Medical Inflation in India is close to 14%.

Key Takeaway: 

To retire early, focus on making the most of your resources and opportunities, just as the top 1% do.

The Retirement Planning Math:

To start your retirement planning properly, you need to calculate a few metrics.

Lets discuss them one-by-one:

Step 1: Lifestyle Inflation:

This is the first step to do your Retirement Planning Math.

For this you need to look at 2 metrics:

  • Current Lifestyle
  • Inflation on your Lifestyle

To reduce your current lifestyle expense you can always shift to a smaller city (if your work permits) to cut down on your monthly recurring expenses.

Similarly, your lifestyle will always undergo some kind of inflation. This could be through better experiences, better materialistic items, better luxuries and so on.

Therefore you should set your expectation for this Lifestyle Inflation. 

Step 2: Save & Invest:

Your current salary is irrelevant to your retirement planning. 

Its about how much you save and invest!

Step 3: Rate of Growth of Investments

 As per a survey conducted by SEBI [3], more than 95% of Indian households invested their money in Fixed Deposits.

As per the report [4], only 3.5 crore people in India invest in Mutual Funds.

The money that you need to grow at a rate of at least 10% needs to be put in growth assets. This could be:

  • Good Mutual Funds
  • Good Real Estate 
  • Fundamentally Good Stocks

Official Inflation in India hovers around 6%. The rest 4% growth is for your Systematic Withdrawal Plan.

The 4% Rule:

The 4% rule is a fundamental principle in retirement planning. It suggests that you can withdraw 4% of your retirement portfolio’s value annually and expect it to last throughout your retirement. However, to achieve this 4% withdrawal rate requires prudent saving and investing strategies [5].


As an example: In 2023, you can retire with INR 1 crore if your yearly expense is 4%, which is 4 Lakhs.

With this withdrawal and a growth rate of 10% on your investment of 1 crore (6% Inflation + 4% to keep the balance), your investment will not shrink.

The Role of Inflation:

Inflation, both official and unofficial, plays a significant role in retirement planning. The official inflation rate in India is approximately 6%, but it’s essential to consider the unofficial inflation that affects specific expenses, such as education and healthcare. 

This insight leads to the realization that a more substantial financial cushion is needed for a comfortable retirement.

Key Takeaway:

Be aware of the impact of inflation on your future expenses and plan accordingly to maintain your desired lifestyle.

Assets to Consider for your Portfolio

•  Index Mutual Funds:

  • They have lower expense ratio and exit loads.
  • This commission can help you achieve higher returns
  • Nifty 50 has given a historical CAGR of 12-15% if you take a long term view

•  Direct Stocks

  • If you are purchasing Direct Stocks you need to know when to Buy & Sell.
  • You also need to allocate time to do Fundamental & Business Analysis of the companies you invest in.

If you are a serious investor and are looking for advanced techniques with a focus on better returns, join our Wisdom Hatch community where I give live and timely updates on the Stock Market.

• Real Estate

  • Remember your house that you live in is not an Investment, its a place for you to stay.
  • Real Estate Investments could be Commercial, Residential etc.
  • But the point of it is to give stability and give consistent cashflows. 

Fixed Deposits & Bonds

  • FDs & Bonds are another medium for you to invest in stable assets. 
  • Remember that this is not your growth money, its your stable risk free money.

What other business can Jio Financials start considering?

1. Start by saving at least 10% of your income:

  • This will get you into the habit of saving regularly.
  • Increase this number ever 6 months.
  • Also increase your savings rate as your income grows.
  • Budget Sensibly and Spend within your limits

2. Invest with Index Funds:

  • Start by investing in Index Funds with a goal of 12% returns.
  • Then slowly move into using advanced techniques like bulk investing to generate more returns (16%).
  • Look into educating yourself about stock investing to invest in Direct Stocks for higher returns

3. Segregate your Portfolio into Growth and Risk Free Investments:

  • Look for opportunistic real estate investments to create cash flows
  • Aim to make at least a 4% rental yield on these assets.
  • Invest in FDs and Bonds when their yield is high and lock it in for 2 years.

4. Do your Retirement Math and Build your required Corpus:

  • This will allow you to follow the 4% Withdrawal Plan.
  • Remember to keep note of your Lifestyle Inflation.
  • Use these metrics to Retire Early

If you are a serious investor and are looking for advanced techniques with a focus on better returns, join my Youtube Community where I give live and timely updates on the Stock Market


Retiring early may seem like an insurmountable feat, but with the right strategies and insights, it’s more achievable than you might think. Understanding concepts like the 99-1 rule, the 4% rule, inflation, asset allocation, and the role of real estate and bonds can help you embark on a path to early financial independence. 

By setting a well-defined retirement goal, you can plan effectively and take steps towards making your early retirement dreams a reality. So, are you ready to take control of your financial future and work towards an early retirement? 

It’s time to get started on your journey to financial independence. Remember, early retirement is not a far-fetched dream; it’s a goal that can be achieved with the right knowledge and strategies.

  1. Early retirement is achievable with the right strategies.
  2. Explore the 90-9-1 rule, highlighting the importance of resource optimization.
  3. Calculate your retirement planning math, including lifestyle inflation, saving, and investment growth.
  4. The 4% rule suggests you can withdraw 4% of your retirement portfolio annually for financial security.
  5. Understand the impact of inflation on expenses, both official and unofficial.
  6. Diversify your portfolio with growth assets like mutual funds and stable investments like real estate and bonds.
  7. Consider assets like index mutual funds, direct stocks, real estate, fixed deposits, and bonds in your portfolio.
  8. Actionable steps include saving at least 10% of your income, investing in index funds, segregating your portfolio, and doing the retirement math.
  9. Early retirement is attainable with the right knowledge and strategies, so start working towards financial independence now.


Ever wondered what we get in return for the taxes we pay in India. Whether the Tax Structure is TOXIC? Check out our Blog post on HEAVY TAXES, But we get NOTHING in return

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