Related: 8 Questions to Help You Decide if You Should Move in Retirementĭining oceanfront may be part of your dream retirement. Gold medals go to those who have accumulated enough assets, or passive income streams, to be in a position to retire well. Would you lease a new luxury car if you knew it meant you would have to work a few more years? Downsizing your house might look more appealing if it meant you could retire now rather than in 10 years.Īssuming you are doing pretty well and are happy with your current standard of living, what would you need to maintain your standard of living in retirement? Knowing you are on track to accumulate a nest egg to support that lifestyle is a big win. Considering your bare minimum retirement, and knowing you have enough money saved to at least cover some standard of living in your early retirement, will also influence other life choices you may make along the way. You probably will decide against moving to that cabin in the woods without running water, but it might be nice to know you could. Could you move to a place with a lower cost of living? Would you give up going out to dinner? Work towards a nest egg that will support this bare-bones lifestyle.
#Financial freedom meaning full
I should point out that those people were closer to full retirement age.įor those of you looking to retire early with financial freedom, think about what your bare minimum retirement would look like. Some considered things like moving to a foreign country with a low cost of living, selling their home or getting roommates. Those individuals were willing to do almost anything to retire as soon as possible. I have met a few over the years as a financial planner.
Gettyĭo you know anyone who hates their job? I mean really hates it. The basic level of Financial Freedom may leave you doing your own housecleaning. Not having to take a day off from work just so you can visit the dentist or take your kid to the doctor could be a huge benefit for some. It could come in the form of more paid time off, flex time or perhaps working remotely on occasion.
Together, they are about leaving the rat race to follow your passion, or spend more time with family, and not going completely broke doing it. Freedom of time and financial independence go hand in hand. What many people desire is more flexibility with their schedules. That of course assumes you avoid increasing your lifestyle and spending it. That extra cushion can be used to move up your financial freedom date. There is an immense sense of relief when you are earning enough to save, doing the things you enjoy and still having extra at the end of the month. This is a bit more about enjoying your life and having the money to do it. Level 3: Enough to be Financially Happy and still Save Even if you are starting small, the important thing is to get started.įinancial Freedom - means having enough money to travel and still save for the future. Breaking up your financial independence goals into small chunks can help keep you on track while making the process a bit more manageable and, hopefully, a little less stressful. Planning for retirement, or even financial freedom, is a marathon and not a sprint, as the saying goes. It pains me to report that about 21% of people have zero, zilch, nada saved for retirement, according to the Northwestern Mutual's 2018 Planning & Progress Study. In fact, many people who are reading this likely are not saving enough to maintain their current standard of living during their golden years, if they retired at the age of 70. No thank you! Realistically, most of us will not want to do the things required to retire at 30, 40 or 50. Joking aside, I actually come across a blog that promoted dumpster diving for food. Sell all your stuff, except for a tent, and move to the woods so you will never have to pay rent or utilities again.
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