Step #1 to early retirement? Start learning from others!
I started looking into early retirement. Not because I am anywhere close to it, but because I want to learn how people do it.
What caused this inspiration? tax season & losing my debit card made me realize I couldn’t answer a lot of questions I should’ve known the answer to (long story). That’s part of it at least.
Regardless of where you are in life, do you want to get better at managing your money? I know I definitely do, especially if that leads to an early retirement.
Your Money or Your Life
Personal finance is one of my favorite topics and I can’t help but talk about it, especially because I am currently reading “Your Money or Your Life.” Have you heard of this book before?
It is a book that has been recommended by numerous savvy bloggers and even Mr. Money Mustache talked about it. If you haven’t checked out his site yet, it is pretty good!
In the book, it discusses how wasteful we are as a society and how we are giving up precious time devoted to our workplace in order to keep buying stuff we really don’t need.
We could actually live more simply to save more of our hard earned money (and help the planet!), so that our precious time can be spent on things that matter to us.
Is Retiring Early Possible?
There are many people who are reading Your Money or Your Life and other financial material who are actually retiring early.
Others just seem to know what they want early on and make it a priority, so they can do important things like spend time with family.
I’d love to live like this couple who retired in their 30s to travel the world. They lived within their means early on and saved 70% of their income in order to enjoy an early retirement. Amazing!
For many of us, this will not be an easy feat, but that doesn’t mean we can’t learn to be better. Right?
A Quick Exercise
Do you know where your money is going?
Although you should follow all the exercises in the book to a T, my favorite one was writing down everything I spent on so far for this month.
If you write out all of your expenses, no matter how tedious, it will open your eyes to how much you truly spend. Most people don’t do this because it is a pain in the butt. However, it is very important.
How about you? How do you keep track of your expenses?
Try it Out
Write down all your fixed expenses like rent/mortgage, water, electricity, medical expenses, etc.
Then, list how much you spend on flexible items like gas, groceries, eating out, cable, Netflix/Hulu, entertainment, shopping, home maintenance, etc. See where you can make improvements!
Don’t forget your car payments, cell phone bills, student loans, and other expenses either.
You must write down everything. At the end, tally it up, and see how you did.
Are you surprised by your expenses? This month wasn’t a good month for me!
Taxes cost a bunch ($471), a speeding ticket ($223), and insane food costs.
I’ve decided to garden and grow my own food.
Anyway, I wanted to share with you a dose of inspiration! Couldn’t we all use a little bit? I want to dream of my own early retirement. Even if it means retiring at 60 instead of 65.
Here are some inspirational stories for you to start with.
Enjoy your week!