My other two early retirement books just came in the mail from Amazon. The two books are Your Money or Your Life by Joe Dominguez and Vicki Robin and Work Less, Live More - The New Way to Retire Early by Bob Clyatt. I’ve read about 2 chapters from Work Less, Live More. I like the book so far.
Most of these early retirement books are based on common sense. Here is what I have learned from them so far.
1. Live below your means. This is so you can accumulate a large enough nest egg to retire early. It means being frugal, but not cheap. Frugal means economic use of resources. Don’t waste money on useless things that depreciate in value. Things such as nice cars, large houses, and expensive things used to show off status. Instead, invest in appreciating assets such as stocks, bonds, and real estate.
2. Set goals and plan a budget if you must. I think setting realistic goals are very important part of every person’s financial plan. Setting at least an annual goal of things to accomplish is a must if you want to retire early. My goal was to increase my net worth by X amount of dollars each month as well as a yearly goal. I am usually able to meet my goals, which is good. I do not keep a budget of what I spend, but I have a rough estimate of what I spend each month.
3. Learn the basics about investing. If you do not want to spend much time looking at investments, learn about index investing and invest in index funds using Vanguard or other low cost mutual funds.
I like learning about personal finance and investing. It’s a life long learning activity that I find interesting and enjoyable. Retiring early is something I have wanted to do for a long time, even though I’ve only started my career. It is the freedom that I crave; the freedom to do what I want, when I want. It is not that difficult to retire early too. It takes a lot of planning and some sacrifices and a bit of time.
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As someone “retired” at 35, it is doable. Especially using “Your Money Or Your Life”’s definition of financial independence.
35! That’s impressive. Early retirement is my obsession… but I’m only 30 and have a ways to go. I’ve been working on a site about it… http://www.fireby40.com
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