Early retirement is the personal goal I hear the most about these days. Among young people in their thirties, working for another 30 years seems tough. Now prove that you will not work with the same employer for your whole life, But not wanting to work at all is relatively new. But I think it's fair enough.
Work was not as all-consuming as it is for young people these days. There are so many that they routinely log 80 hours worked per week. Wait a minute, that amounts to literally working every waking hour. No wonder they realize that this cannot continue.
It's tough to have so many professions, from high-profile consulting and private equity to medicine that require careers, making long working hours the norm. But even the simplest professions such as call centers, logistics management, sales, and customer service are now beginning to look for long hours. Then there are those who work across time zones in technology, software, music, authorship, writing, content, media, and filmmaking with little regard for the hour and the list goes on. The long working hours that often stretch into the weekend seem inevitable.
What young salaried workers have realized is that complaining about working hours is useless when work is fun, colleagues are attractive, and money is good. Therefore, they view their career as an initial stage of opportunity, money, growth, and prestige. What their parents have accomplished in 35 years of long work, they realistically expect in 15 years. So early retirement makes sense not just as the end of the job, but as a worthy hub that allows them to pursue whatever they want. Find the elusive work-life balance.
It's also important to see how stressful growing up has been for this generation brought up by helicopter parents. Forced to learn music, sports and accumulate hours of social work, in the midst of constant preparation for competitive exams and higher grades, this generation has prepared for exhaustion, even when it wants to break the heart and follow it.
The second profession is a love story that many of the Thirties hold at heart. Many do not want to acquire assets, "settle down" in a marriage, or have children before they are ready to focus on life apart from work. In that utopia, they will live in the silence of the forest, sleep to the sound of the wind, eat in their orchards and live a simple life. How does one prepare for such a transition?
First, it is necessary to create a group that can be taken advantage of. The group must be large enough to generate enough income to meet the basics. There should be enough money to pay rent, food, utilities, education, and possibly leave a small surplus to indulge. This group should grow over the years, ideally at a rate that exceeds inflation.
Secondly, access to this group is not just a function of earnings, savings, and investments. It's about what the new lifestyle will be like. Is there a break with the amenities, expenses, burdens, and expectations of the present? Without a clear understanding of how different it is, leaving a job can be risky. What former retirees saw as a lifestyle commitment after retirement, young people see as a lifestyle modification.
Third, retirement should be about pursuing a different purpose in life. Otherwise, it will be boring, and wasteful. Without deciding what you would like to pursue to engage meaningfully with the world, or society in which you live, to contribute, to transform your energies, early retirement can be detrimental to your mental and physical health. Burning can't be blamed as an excuse for not doing anything for years.
Fourth, it is important to find an alternative income job. You can choose to write, teach math or music, become a farmer, work as a tour guide, or pursue a cause that interests you most. But all these activities must generate income that can cover some of the expenses. This will reduce stress in the body.
Fifthly, one needs to prepare mentally for the change they are in relation to. Living on a farm means being comfortable with the other ways of life that will live with you; Be prepared to accept what nature has to offer such as heat, rain, and unexpected living conditions; be able to withstand low levels of infrastructure comfort; Be prepared to cook every meal every day; And so on. There is enough to discourage the weak in many of these alternative proposals.
Sixth, one must be willing to consider how these lifestyle changes affect what one does for leisure, social interaction, education, health care, and the everyday decisions that urban life allows to be taken for granted. Many want to travel as their priority. Traveling requires good levels of physical fitness; willingness to endure the physical discomfort of the trip; Comfort with new environments, languages, and food; And so on.
Seventh, one must have an open mind to cancel the experiment and return to the mainstream if necessary. Many like to take what they call a "break" so they can try an alternative and then make a decision. The early days of romanticizing working from home and enjoying freshly cooked food at home with lockdown have given way to the frustration of being stuck indoors for the past 18 months. Modernity is passing away faster than we can imagine.
Eighth, early retirement and starting a new life should not mean giving up the basics of personal finance. One will still need to manage wealth and asset allocation; One would have to be adequately insured; One must monitor the performance of the assets, And one must actively make sure that money is working hard even if one retires to live a more stable life. The number of years one must fight inflation means that the value of assets must increase, whether by investing in growth paths or by systematic accumulation and accumulation of the group.
There is nothing wrong with thinking about early retirement. But thinking about the elements of its financing and preservation seems understated.
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