Retiring early might sound like a dream reserved for the wealthy or crypto millionaires — but with the right mindset and a consistent strategy, it is surprisingly achievable for everyday investors.

And one of the smartest paths to early retirement is hiding in plain sight: high-quality ASX shares.

Let's break down how to get there — not by picking winners and hoping for a windfall, but by methodically building wealth and turning it into reliable income.

Step one

If early retirement is the destination, the first part of the journey is all about growing your capital. Forget about passive income (for now) and focus instead on accumulating a portfolio of high-quality ASX shares with strong long-term growth potential.

Think companies like Goodman Group (ASX: GMG), Xero Ltd (ASX: XRO), and CSL Ltd (ASX: CSL), or ASX ETFs like the Betashares Nasdaq 100 ETF (ASX: NDQ) or the Vanguard Msci Index International Shares ETF (ASX: VGS).

The goal is simple: build a $1 million portfolio.

That might sound daunting, but here's the reality — if you can invest $1,500 a month into a diversified mix of high-quality ASX shares and achieve an average annual return of 10%, you could hit the $1 million mark in just under 20 years.

Step two

Once you've built a $1 million ASX share portfolio, the hard part is done. From here, you can shift your focus from capital growth to passive income generation and watch the money roll in.

That means moving into a mix of ASX dividend shares or ASX ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

If you target an average dividend yield of 5% across your million-dollar income portfolio, you're looking at $50,000 a year in passive income (and growing) — all without selling a single share.

That's income that can cover your expenses and fund your lifestyle, while your portfolio continues ticking along in the background.

Foolish takeaway

Retiring early using ASX shares doesn't have to be a dream. You can make it a reality if you choose.

Grow your portfolio with quality ASX shares and ETFs, hit your $1 million milestone, and then pivot into an income strategy that delivers $50,000 a year in passive income.

It's not a sprint. But it is entirely achievable. And the sooner you start, the closer early retirement becomes a reality.