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Yesterday we talked about starting young, not just as it applies to saving, but as it applies to accelerating your retirement plan.
Maybe you couldn’t find your WHY?
After all, who wants to think about retirement when they are still in their 20’s or even 30’s? Most are still thinking about their job!
Yet, as yesterday’s post showed, there are some good reasons for starting early. And, who wouldn’t want to retire early if their goals matched these from a recent survey of GenXfinance‘s readers:
Being a ‘Gen X’ PF site, we can probably assume that most of the respondents were younger than, say, me. But, it’s even more interesting to notice how each of the first three categories (where the majority of the votes fell) require MONEY and/or TIME:
1. Extensive Travel
Think about it, you can escape money to a greater of lesser degree if you are willing to travel frugally, work at least during some of your stopovers (haven’t you noticed how all the ‘servers’ in restaurants in vacations areas are young foreigners?) …
… but, you can’t escape the time element: this means that you have to be ‘retired’ from your day job.
2. Not going to work; just taking things one day at a time
Obviously, this means that you are retired from your day job … but, two things happen when this occurs:
i) Your income goes DOWN
ii) Your spending goes UP
For those who subscribe to the “75% of current income in retirement” theory, I ask this: have you ever tried spending time doing anything BESIDES WORKING that doesn’t COST money?
Think about it … it stopped me from cashing out when I was offered $4 mill. a few years before I eventually did cash out (for a helluva lot more!).
3. Doing volunteer or charity work
All [charity] work and no play makes Jack a dull boy … this is really 2. plus you are spending some of your time (perhaps a lot) giving back. This is a good thing … as well as the great work you are doing, you are spending less time … well … spending!
If you scroll down the comments attached to GenXfinance’s post, you will see that most of the ‘other’-folk either mean not retiring at all (like the ‘pursuing a second career’ option) or involve a similar outflow of money and/or a similar savings-account-draining, non-income-earning amount of time.
But, they are all things that you will probably want to start whilst still young enough to enjoy them …
… which means starting to build a pretty damn large nest-egg pretty damn soon!
Let me know what (and how much by when) ‘retirement’ means to you?