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Why Retiring Early is Achievable

Retirement is Personal and Mathematical

Some people would rather work to their 70s and splurge in the most expensive things like travels and cars. There is no judgment on them that is their choice. Those are their values and each of us is entitled to our own as it doesnt harm other people.

There are also people who stumbled upon the idea that time is more important than money. They know that beyond a certain amount money cannot add more to their happiness without costing them their time, life and energy.

The following table will show where these people fit in.

The annual savings rate is the % of the amount you save from your annual income. So depending upon your lifestyle, spending and income this % would differ.

This table shows how long you have to work before you will be able to retire. These are based on assumptions by experts taking into consideration return on investment as well as inflation.



Savings Rate

Savings Rate

Let's study the table

As you will see from the table, if you follow the traditional 50-30-20 rule budget,you will have to work 40 years of year life and retire at 60. This is the traditional route.

But then it introduce to us that there other options.

It gets interesting at 50%. If you save half of your income you will only have to work for less than 20 years which means you can retire in your at 40s if you start saving 50% in your 20s. That is a ton of time to enjoy your life while you are still strong.

On the more extreme of the spectrum, if you start out with a good salary in your 20s and aggressively through frugal lifestyle saved 65% annually then easily you can retire in your 30s

This must have allowed Mr Money Moustache to retire in his 30s, He is an Engineer which I believe is paid good money which allowed for a lot of room for a frugal lifestyle and have a very high savings rate. Not to mention he is very skilled with DIY.

Realistically, how to make this work for us.

Right off the bat it is not usual that you get a good salary. You have to earn those promotions and also find a job and workplace that you like and fits you. Then hopefully by 30 you have tripled or more your income so you can start saving that 65% and in 10 years, you can retire early.





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The industrial age taught us that retirement was an age. The age of technology teaches us that retirement is a dollar amount

— Windel Walter

If You are 40, Like Me

If you have saved and invested in your 20s and 30s but didn't reach financially freedom now that you are in your 40s, like me we have several options.

First would be to beef up that saving. Try 60-75 savings rate by living way below your means with your eyes on the prize which is financial freedom. Now is the best time if you are at the peak of your career.

The second option is more applicable to me and that is semi-retirement. I have reached a quality of life that I can be happy with. It is simple and humble. But I find it enjoyable. You can scale down to a part time job or work on some side gigs online or offline that you enjoy doing.

We have to take care of our health at this age because stress and burnout can get the better of us. There are a myriad of illnesses and health conditions that can crop up including mental health issues. I would not share the specifics but that is my primary reason for my decision: to prioritize my health and well-being. And savings and investments allow us to do that.

I enjoy my time. I have more free time to rest, read novels, journal and reflect on my life. I am an introvert and I'm not sure if this will work for extroverts as well. But these creative activities are nourishing and fun.


Retirement Planning

Retirement Planning

Self reflection has taught me a lot about contentment and I start to feel that I have enough. This generation is very rich in resources and when I say resources I meant entertainment online, learning resources and opportunities. So not much money is needed to be happy. It has more to do with time, loved ones, passion and reflection.

I realized when I reached a feeling of contentment, then moneywise I just have to get my finances in order. I make this possible through a budget and sinking funds that work for me.

One specific sinking fund is replacements for things I already have because these things make me content. I also have a fun sinking fund because although I feel content there is still that natural desire for new experiences or simply variety and exploration and growth.

Since I have been intentional with my spending, I have also learned ways to save money.

Wherever you are in life and financial, I hope this knowledge which I also learned from the internet particularly thefioneers blog will reach more people to help cope or even thrive in life.


This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2022 Micha ELa

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