Early Retirement Lies: What Stops People from Retiring Early?
Some people are lucky enough to retire early. They managed to accumulate more than enough wealth to last the rest of their lifetime. But the sad news is, most people are tied to their work and can’t afford to stop working even for a few months.
Early retirement may seem like an impossible feat. But by living with Financial Independence Retire Early in mind, you can have the power to achieve financial security and independence at a much earlier date. You won’t have to wait until you reach your retirement years to stop working if you manage to save more than enough of your projected retirement expenses.
Still, many people who can afford an early retirement have second thoughts. They don’t believe that they can manage, considering the continuous increase in today’s cost of living. In a nutshell, many people believe the following early retirement lies.
The Earlier You Retire, the More Money You Risk on Loosing
Retiring does not necessarily mean you only have to quit your jobs. Remember that a decision as big as an early retirement includes years of saving, planning, and investing. One can’t simply rely on their savings to help them after retirement.
This is why financial experts suggest that you plan your retirement early. With this, you can make the right decisions at an earlier date. This includes knowing where you wish to retire in the future, what your passive income will be, and what your emergency plans entail.
Remember that as you grow older, your needs will continue to change. You might not be able to age in place as you originally planned and might require living in an assisted living community a few years after saying yes to retirement. The earlier you consider all factors involved, the easier it will be to plan for the future.
It is crucial that as early as now, you live below your means, build emergency funds, have made investments that will give you a passive income, and can survive using your projected passive income in the future. It also becomes a must you have an emergency plan in place.
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Early Retirement Will Guarantee Happiness
There is nothing in this world that can guarantee your happiness. Many factors can influence your happiness, including your health, ability to afford your lifestyle, and relationship with others. Simple saying hello to retirement at an early age will not automatically mean you will live the rest of your life in full bliss.
There will be times when thoughts of uncertainty will cloud your mind. Different questions will come rushing in, like did you make the right decision or if you retired too early. The key to a happy early retirement is using this time to get the most out of your life by living each day with a purpose.
It helps if you don’t allow your stress trigger and anxieties to dictate your happiness. Focus on living a healthy life and making memories doing what you love.
Early Retirement Will Make You Lose Your Sense of Identity
Many people established the life they wanted by allowing themselves to lock their identity based on their profession. You may get to be an expert in your field. But retiring from it won’t automatically make you lose your identity.
There are times when people fail to retire because they feel like they are nothing without their expertise. You may feel demotivated because you no longer feel accomplished and people no longer see you as successful. Remember that all your achievements are yours alone.
What retirees can do is do a bit of soul-searching. Some things can define you aside from what you do for a living. Stop thinking you should be ashamed of yourself just because you are now retired when you used to be very successful in your field.
You Will No Longer Work After Retiring
The problem with the word retirement is that people assume this means you no longer generate income. Sure, most people quit their jobs after retiring. But why stop working completely when you can find something that you would never want to retire from?
Use this time to pursue a passion or, better yet, do something you’ve always wanted to do that used to conflict with your past career. This way, it will feel like you are doing things for your own sake rather than the money. This will enable you to build a satisfying life after saying goodbye to your current career path.
Retiring early has its fair share of perks and drawbacks. Only you get to decide whether this path is something you would want to take in the future. In the meantime, continue planning, budgeting, saving, and investing smartly as early as now.