I'm on Track to Retire Early Thanks to This Simple Habit

You've probably heard the conventional advice: save 10% to 15% of each paycheck, and one day when you're old and grey, you'll retire comfortably.

But what if you don't want to wait until your late 60s? What if you want financial independence much sooner?

That was me. I didn't have a fancy job or a big inheritance. I barely passed high school and never went to college. But I did develop one key habit that put me ahead financially in life. I consistently saved a hefty chunk of each paycheck (25% to 30%, sometimes more) and invested it automatically.

My wife and I crossed the $1 million net worth mark in our early 30s. We're not flashy, we don't live large, and we still clip coupons. But we've got unstoppable investment momentum that will allow us to retire early. (Maybe even in the next few years -- shhh don't tell my boss!)

The simple habit: Automate your savings

It's simple, really. Every payday, set up automatic transfers from your checking account into high-yield savings and investment accounts.

Even when I was earning an entry-level salary, I made sure part of my paycheck moved quickly into savings before I ever saw it. Out of sight, out of temptation.

Let's say you make $4,000 a month. If you automate a 25% savings rate, that's $1,000 going toward your 401(k) or brokerage account each month. Over 10 years, even without fancy investing, you're looking at over six-figures saved.

Throw in compound interest, and that's where things get really exciting…

Invest early and often

Saving money is the first step. But investing is what really builds wealth.

When you invest, your money starts working for you. It earns returns, then those returns earn more returns. Over time, that snowball can grow into a mountain of money.

Check out what happens when you invest just $1,000 per month with an average annual return of 8%:

And if you can save $2,000 per month, you can more than double those figures above! (Couples with dual income have a huge advantage here.)

If you're not sure where to begin investing, start with basic index funds. They spread your investment across hundreds (or thousands) of companies and have very low fees. Personally, I've leaned heavily on total market and S&P 500 index funds.

Want help with your retirement plan? With our partner, SmartAsset, you can get matched with up to three fiduciary advisors so you can get professional advice.

How to build a savings habit

You don't need a high salary or a perfect budget to start saving. Here are a few simple, realistic ways to get going.

1. Start small

Don't worry if you can't save much to begin with. Start small by saving just 5% to 10% of your income. You can increase the amount once it becomes routine.

2. Automate it

The easiest way to save is to make it automatic. Set up a recurring transfer that happens right after payday. That way, you're not relying on willpower or waiting to see what's left over at the end of each month.

3. Set a goal

Saving feels more meaningful when there's a purpose behind it. Small goals like building a $10,000 emergency fund, or large goals like saving for a down payment, keep you motivated and focused.

4. Adjust as needed

My wife and I had periods when we were both working, but some years we lived on only her teacher salary. Life isn't always predictable, so if you need to dial back your savings temporarily, that's OK. The key is to stay in the habit.

5. Track your progress (and celebrate small wins)

Watching your savings grow is a massive motivator. Use a budgeting app, spreadsheet, or even a good old-fashioned chart on the fridge. Visual progress keeps you engaged. And don't forget to celebrate hitting those little milestones along the way.

Consistency beats perfection

You don't have to get everything right. I've had my fair share of financial screw-ups.

But if you can build this one habit -- saving consistently and investing each month -- you'll give yourself a huge financial leg up later in life.

Start today. Save what you can. Rinse and repeat.

Want to build a plan for early retirement? A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.