When planning your early retirement, it is important to know what you’re trying to accomplish. Are you focused on running towards a certain lifestyle or are you fed-up and running away from your current lifestyle?
Sometimes it’s both. But it’s important to identify which is driving you.
Many people that are seeking an early retirement are focused on having time and freedom. Perhaps it’s to relocate to Costa Rica, live a mobile life on the road or just to have the time to work on side projects. For others, retiring early is a way out of the job or career that is pulling them down mentally or physically. They are fed up with their current situation and all they want is out.
When you’re working towards an early retirement it is important to have focus on how you want to spend your new-found freedom. If you’re focused you have done the research and you know what it will take to support your retirement. If you are in the fed-up category you need to prepare for lifestyle changes and you may not be carefully considering what that really looks like.
Being focused means that you’ve put some thought into what your next step in life looks like. You’re moving towards a desired outcome. However, just because you have a desired outcome doesn’t mean you can ignore other areas that you need to make sure are in sync. You might be focused on that move to Costa Rica, but have you gotten your financials in order to do so? Mentally are you ready to make the change? Ready for the differences in daily life, some of the things you are used to that may not be around?
In a fed up state of mind, errors tend to be made because the end result is to get your freedom at whatever the costs. You just want out. Without proper planning, running away can be costly. When you’re fed up, you’re done with your current position. You want to run away from the stress of your situation and you can’t get away from it quick enough. However, what are you running towards? Think it through. Plan it out. Go there in your mind ahead of time.
Quitting your job one day because you can’t take it any longer will do you no favors when it comes to your retirement lifestyle. Even if mentally and financially it looks like you’re ready to pull a Johnny Paycheck and tell your boss “Take this job and shove it”, not having focus on a realistic future lifestyle could bring back mental and financial woes.
For example, you can afford your current lifestyle using the assets you currently have. What happens when 2 years down the road you want to pick up a new hobby or travel, is your budget ready for that?
You don’t need to have a set lifestyle goal in mind, but you do want to be financially prepared to overcome boredom.
Preparation is key whether you are focused on getting in your RV and taking off or fed up with your career. Take the time to get your affairs in order so that you can retire with confidence.
Retiring early may not come easy, but it will probably be worth it if you are fed-up.
Live free my friends