Early retirement is more of a reality than many of us know. Even if you are in your late 40s and have pretty much missed that "early" part of the deal, there are still ways to speed up that process.
While there are investment plans and careers that give one a better chance of retiring early, you can also retire early with your lifestyle choices.
The art of Planned Frugalness is a bit different from Just Getting By. Planned Frugalness with the goal of early retirement are incorporating set plans of actions that revolve around spending much less than what you make--and anyone can do it.
There's a guy named Mr. Money Mustache, and he is about that lifestyle. Mr. Money Mustache calls himself a "financial magician" and retired at 30. His motivational website gives us encouraging tough love anecdotes such as "Get Your S*** Together" and more to guide us on the early retirement track. While the site is full of great information as well as a forum to vent, he narrows early retirement steps down into five succinct and sweet tips for MarketWatch of The Wall Street Journal:
1. Ride a Bike
The most awesome advice ever-- you cut back on car and insurance payments as well as gym fees. While it might be more easier to do so in urban communities and with no children, it is still possible with the current surge of varied car services available.
2. Treat Your Dollar Like An Employee
When it comes to your dollar bills, you don't want a high turnover rate. Invest the dollars, and keep them on your roster instead of letting them fly out of the door.
3. Output is More Important Than Input
Pay cuts and pay increases can happen any day, but regulating how much you spend is always up to you. Mr. Money Mustache considers your spending rate as the "single biggest factor" that determines when you'll be able to retire.
4. Toss the Television
Mr. Money Mustache asserts that television wastes your time,and saps the quality time away that you could be using to instead of you using to figure out ways to hone your life. Mr. Mustache also asserts that television darkens your perception on life and increases your urge to participate in high spending to keep up with what media portrays.
5. Be Happy
Instead of looking for external and material things to make you happy, find joy in the free things such as family and friends. Mr. Mustache advises you to make happiness your life goal instead of having money, and with a few key adjustments it should all work out.
There you have it. Hippie Hoo-rah or Great Financial Advice? Mr. Money Mustache retired at the age of 30 starting with no more money than the Average Joe. Try reading his website for more thorough advice before you make a final decision-- it might work for you too.
Image via Wikimedia Commons