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One Secret To Retiring Sooner

One Secret To Retiring Sooner

As people have really dug into my new book over the last few months, You Can Retire Sooner Than You Think: The Five Money Secrets of the Happiest Retirees, I’ve had a common question come back to me:

“Given the fact that people are already living longer, requiring a longer draw-down period from their nest egg, how do you reconcile people retiring even earlier?”

It reminds me of the quote, “No man on their deathbed says, I wish I had worked more.”

My answer to this may sound a little grim but it’s realistic. While as a whole people in the US are living longer, it doesn’t guarantee that we’ll all live to age 100.

I have known too many wonderful people who spent years planning their retirement, but when they finally reached their “golden years” they sadly passed away unexpectedly just a few short years into their perfectly planned retirement.

Of course none of us knows exactly how long we will be on this earth. If we did know, retirement planning would be much easier. This leaves people with the difficult decision of retiring with the fear of possibly running out of money, or potentially missing out on the ability to enjoy retirement altogether. That’s why I suggest that if you’re looking to retire early, you might want to consider phasing into retirement.

Rather than diving straight into the retirement pool, you can wade in by first moving to part-time work. By continuing to work you may be able to stop saving for the future while also not spending from your savings. Just working part-time will give you more of the free time you’re looking for in retirement, but delays when you have to start using your savings.

Traditional retirement planning is often seen as black and white. Meaning you go from full speed building your nest egg to full speed spending your nest egg. By instead moving to part-time work you’re able to have more freedom with your time while also extending the life of your nest egg.

Think of this phase as your retirement happy hour before the party really starts.

It’s helpful to start planning that move to part-time work a few years out, before actually enacting it. While for many careers it may simply be a matter of reallocating priorities and cutting back, there are careers that do not easily offer part-time work. If that is your position, use the few years beforehand to start thinking through and planning your part-time career move.

Ideally, your part-time work just needs to cover your monthly expenses, so you may be able to switch to a new field. You could even take up a hobby as a part-time gig. If you’re crafty, enjoy woodcarving or have other skills like this, consider opening an online Etsy store. If you love shopping you should consider applying to work at your favorite store. On top of a job you’ll likely get an employee discount. You should be realistic, though. It’s probably pretty tough to get paid to go fishing or to watch college football.

An important happiness pillar from my book’s research stems from retirees participating in many different “core pursuits” also known as hobbies on steroids. If you can find a way to get paid while enjoying your core pursuits, then all the better.

Everyone seems to know someone who died too young to enjoy the money they had diligently socked away for retirement. I’ve personally seen it too many times to ever recommend that anyone stay somewhere they don’t love when they could potentially move to the next phase. Rather than focusing on continuing to build your nest egg, just be sure you’ve reached some of the benchmarks I’ve outlined before, and then get creative with how you ease into retirement.

Remember, it’s five-o’clock somewhere.

Read the original article here.


Why Time Equals Money, But Money May Not Equal Time

I was scrolling through Psychology Today recently when I came upon a post originally by Anne Johnston discussing the relationship between time and money. It began by noting Ben Franklin’s timeless quote from 1748, “Time is money.” She went on to say, though, that while time might equal money, money does not equal time.

This makes sense because money is not a finite resource. In fact, there is virtually no cap on it.

You can always earn more money. You can increase what you get paid, you can work more hours, or even switch to a higher paying career.

Time, on the other hand, is a finite resource. We all have 24 hours in a day and 7 days in a week. Even Pinterest says, “You have the same number of hours in the day as Beyoncé.” Time is truly the great equalizer.

Although our time is worth money, our money is not as valuable as our time. You can never buy more time.

However, while time is more valuable than money, we still need some financial resources in order to really enjoy our time, do the things we dream to do, and live without the fear of running out of money.

Much of this agrees with the research from my recently released bestselling book, You Can Retire Sooner Than You Think – The 5 Money Secrets of the Happiest Retirees.

I learned that the happiest retirees are those who have a significant amount of “core pursuits” which are essentially hobbies on steroids. Most of the happy retirees from my research found their core pursuits while they were still working. Meaning that they found a balance of time and money that helped them reach their goal of being able to retire happily.

These core pursuits were instrumental in motivating these happy retirees to be able to stop working, but first the people reached their financial goals. They had the money saved to be able to retire happily and pursue their passions.

Harvard Business Review recently released a blog post and article about time. They examine how people have a problem with over-committing their time. The blog provides a helpful equation that you can use to see if you’re currently over budgeted on time.

People have always used budgets for money, so it makes perfect sense that time can also be put into a budget to be sure we aren’t “over spending” in either category. Budget your time and try to find your perfect balance of time and money.

I’ve written previously about how important it is for people to find their personal balance of priorities. Having all the time in the world does not guarantee happiness in the same way all the money in the world doesn’t equal happiness. Finding the balance between time and money is absolutely key for happy retirees, and should be for you as well.

I have to remind myself sometimes that my time is valuable. It’s easy to over-commit in the name of growing my business in the pursuit of making my family more financially stable. When I remind myself that my time is valuable, though, I’m able to realign my priorities for that particular day; whether it’s spending some extra time with my family, catching up with an old friend, or maybe it’s spending an extra hour getting ready for Sunday’s radio show on WSB radio so our listeners are able to learn that much more.

Remembering to budget both our time and money appropriately will help us all to not just be a happy retiree, but also a generally happier human being.

Read the original article here.


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