Isn't it great to dream of retiring early? Well, your dream could be much closer than you think.
This story is about a woman who started a movement many years ago. She was a real maverick back in the day and wrote a best-selling book. Today she is having a revival of sorts with millennials.
Her basic premise is to think about how many hours it takes you to earn the money that you are about to spend on some trivial item. Ask yourself "Is this pair of shoes worth working 10 hours to pay for?"
The woman I'm talking about is Vicki Robin - co-author of a best-selling book entitled Your Money or Your Life. She is currently working on a revised edition, but the original is still a great read.
Your Money or Your Life takes readers through a nine-step program intended to transform your relationship with money. It’s not about becoming rich; it’s about figuring out how much is enough. Once you buy less stuff, you won’t need nearly as much money to sustain your lifestyle as you previously did. Wisely invest the difference and wait until the interest thrown off by your portfolio exceeds your expenses. That’s the “crossover point,” Robin writes, and once you reach it, you can peace out of the paid workforce decades ahead of schedule.
I know that buying less stuff is the opposite of what Madison Avenue would like us all to believe. Marketing and advertising drives us to want more, want newer, and keep up with the Joneses.
If you can fight that impulse you can really simplify your life. Buying a used car and driving it for 10 or 15 years is not what television ads tell us to do. But if you want to retire early, you might give it some serious thought.
Of course, reaching financial independence is only part of the equation. Once you get there, you have to figure out what to do with the rest of your life—how you’ll spend a retirement that could last 50 or 60 years. That’s a whole lot of downtime, and most people planning on retiring early aren’t thinking about the looming void. “The vast majority are focused on numbers and calculations,” says Grant Sabatier.
Okay, you've figured out how to live your life without a 9 to 5 job. What next? That might be an even tougher question to answer. We will tackle that in a future article, so stay tuned.
Original article appeared here: http://time.com/money/5241566/vicki-robin-financial-independence-retire-early/
Photo Credit: Ian Allen