I’m not sure if I speak for the majority of people, but when I think of retirement, I think of being 70+ years old. (Then again, I have enjoyed most, if not all, of my jobs at some point, and as long as I am happy, I don’t mind working until I am at least 70.) However, you may not be as lucky as I am to enjoy what I do. If this is the case, then maybe you are looking at trying to retire early.
Can this be done? Of course!
Madison, over at My Dollar Plan, recently left the workforce in order to focus on her children, as well as enjoy her freedom. One should not assume that she woke up one morning and decided to just quit. This plan took time to organize. Thanks to Madison, we have an idea of what it took to get her to this point. She outlined 29 steps that allowed her to leave the workforce at the age of 29. Here are a few of her thoughts:
The very first one that Madison mentions is to “Start Early.” She started her first IRA at age 16 based on advice from her mom. Proof that teaching your kids about money is very powerful.
She also mentions that being organized is the way to go. It’s very important to stay on top of all of your accounts so that you know what you have, what you don’t, and what you can and need to plan for. (Geezeo can help you by allowing you to see all of your accounts in one place.)
You should also endeavor to set some goals. They can be big, however, just be sure to break them down into smaller, attainable sections so that you do not get overwhelmed with it. (Again, Geezeo can help here by letting you see what your goals are and if you are making progress to achieve them.)
Madison also said that she has been frugal, but not too frugal. There were a list of things she was just not willing to do. And that’s OK! However, the important thing to remember is that if you aren’t willing to compromise in one area, then it’s important to replace that with another one that is doable. It doesn’t have to be all or nothing.
Learn from your mistakes (and the mistakes of others). To keep tabs on yourself, keep a journal (it doesn’t have to be detailed) outlining what your goals are, how you plan on achieving those goals, and any slip ups you may have along the way. You can also find out how others have fared by checking out some Geezeo groups such as It’s Time To Budget and Penny Pinching to Early Retirement.
Whatever your decision, don’t look back. Madison says: “Once you make your decision, enjoy your new life. There will be a transition period, but give it some time. I’ll be reminding myself of this in the next few weeks as I settle into my new routine.”
Congratulations Madison, on your new found freedom. We hope that things go well for you, and we can’t wait for the updates on how you are spending your time. If you would like to keep up-to-date with Madison’s journey through early retirement, you can check out her blog over at My Dollar Plan.
Related:
Kids and Money - Can They Mix?
Yearly Goals - Need Reviewing?
The Perks of Phased Retirement
Saving For Retirement During a Recession
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