How would you feel about shaving five to ten years off retirement? Have you ever considered why you don't have any say about when YOU retire?
After ten years of work, I knew I wouldn't last on the traditional 30 to 40-year career plan. It felt like the bulk of my life had already been and left me a few years in retirement. Something about that didn't quite sit well with me.
When I reached a place where I started feeling burnt out and unfulfilled, I knew I had to search for a new direction in my life.
I had seen far too many people struggle to retire only to find out they didn't have the money or the vitality to enjoy the lifestyle they had worked so hard to obtain. I wasn't willing to take that chance. I went in search of the path less traveled.
I discovered that the biggest obstacle to uncovering a new path was unlearning what I had been taught about work, time, money, and retirement. Once I began challenging these old beliefs, I saw retirement differently and subsequently began thinking differently about my future.
Below are four commonly held beliefs I had to unlearn before being open enough to pursue a pathway to early retirement.
Retirement is determined by how many years you work.
Let me ask you a question: If someone gave you a million dollars, would you continue working? Chances are you wouldn't. Why? Because you have enough money to secure your present and your future. Retirement has nothing to do with the number of years you work. Instead, it has more to do with having enough income, savings, and investments to secure your lifestyle in retirement.
The challenge is that even as you work towards retirement, there are no guarantees you won't get laid off, fired, burnt out, or experience a recession. That's why it makes more sense to pursue financial independence. If you can generate enough income independent of your salary, you can position yourself to retire whenever you desire. Once I understood this, my choice was clear.
2. The end goal of working is to save enough to retire
What good is it to work your whole life and still not have enough to live your desired lifestyle upon retirement? Instead of pressing my way to complete 40 years of work, I focused on reaching financial independence. That way, you have more than enough coming in from other income streams in addition to your paycheck and, subsequently, your retirement income.
Wouldn't it feel good knowing you would have more than enough coming in "before" it was time to retire?
3. Living Off of One Stream of Income
Going to school, getting a degree, and selecting a career pathway conditions you to accept one means of compensation. This may have worked for the Baby Boomers, but times have changed. Pensions are a thing of the past, layoffs and inflation are sky high, and retirement savings are subject to stock market fluctuations.
That's why multiple streams of income are vital in today's economy. Isn't it funny how we were taught NEVER to put all our eggs in one basket, yet that is what we do where our jobs and retirements are concerned? If you want to experience true financial freedom and security, increase your income streams
4. Focusing Strictly on Saving
If all you are doing is saving money, you are losing money. Why? Inflation is eroding the purchasing power of fiat currency every day. When I was a kid, I could go across the street to Handy Dan's and buy a Snickers bar for $.42. Now, I can't even purchase a stick of gum for that price.
Money is losing value, and if you are only saving, inflation and interest on debt are eating your money. I am not implying you shouldn't save, but you must combine it with intelligent investing to outpace inflation. And I don't mean just giving your hard-earned money to someone else to invest for you. You should be actively engaged with your financial numbers and investments.
Of course, I would love to share much more with you, but I think you get the picture.
Take purposeful and consistent action to position yourself to retire early and be financially independent. I cover how to do this in my 9-to-5 Breakup Course: A Strategic Guide to Breaking Free From the Limitations of Your 9-to-5.
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