What is the best way to save money & retire early in India? I am 27 years old, earning ~50k per month, & live in my own home. How much should I save & what is the most efficient way to save money so that I can retire early at around 40–45 years?

Gazing out of your window in the serene hours of dawn, can you envision a life at 45, where weekdays blend seamlessly into weekends? A life where the humdrum of daily work is replaced by passions you never had time for? The good news is that your vision of early retirement in India, the land of diverse opportunities, isn’t a mirage but a feasible plan with the right strategy.

1. Understanding Your Current Situation: At 27, earning ₹50,000 per month and having your own roof over your head, you’ve already set a strong foundation. The absence of rental outflows is a definite advantage.
2. The Magic of Compounding: Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.” Start investing now, and the power of compounding will ensure that your savings grow manifold by the time you’re ready to retire.
3. Setting the Retirement Target: Using the ’25x’ rule, your corpus should ideally be 25 times your annual expenses. But given the unpredictability of life and increasing costs, it’s wise to aim between 33x to 40x. If your expenses, for example, are ₹30,000 per month now, they could inflate to ₹50,000 or more by the time you’re 45.
4. Strategic Investment: It’s not just about saving, but where you place those savings. Rooted in the Roots and Wings philosophy, focus on companies with robust balance sheets and consistent growth. This will ensure your investments don’t just match but beat inflation. But remember, with the LSG framework of Jama Wealth in mind, strike a balance between liquidity, safety, and growth.
5. Eyes on Passive Income: Along with your main investment portfolio, consider creating passive income streams. This could be from dividends, interest, or even side businesses. These streams act as additional buffers, enhancing your financial independence.
6. Life After Early Retirement: Beyond finances, it’s vital to imagine life post-retirement. Whether it’s writing, travelling, or volunteering, have a vision for your days to ensure a mentally and emotionally fulfilling life.

To sum up, while the goal of retiring by 45 is ambitious, it’s definitely within reach with the right financial discipline and a clear roadmap. And if the journey seems a tad overwhelming, do take the help of any good SEBI Registered Investment advisor’s services, who can guide you every step of the way.