Tag Archives: Early Retirement Freedom

Hotel Hacks: How to Get the Best Room without Paying Top Dollar

Budgeting, Early Retirement Lifestyle, Saving Money, Vacationing in Retirement, ,

Doing your research really does pay off, but if you are still unable to find a great hotel then you may have to resort to alternative measures. After all, it is more than possible for you to find a great hotel without paying the high price, and these travel hotel hacks will help you to do that.

Research

When you do your research, try to use sites such as Trivago. All you have to do here is enter your destination into the search box. The site will then ask you to fill out your travel dates and before you know it, you could be well on your way to booking your dream hotel. You can even put down the board requests that you have as well. This is great if you have some really special requirements. The main thing that you have to remember here is that not all hotels are on sites such as this. Make sure that you compare prices on other websites too as this will show you hotels that you never even thought existed.

Before pulling the trigger, always try to find your target hotel’s direct online site and compare prices. Sometime the hotels run specials that the hotel broker-site’s don’t know about.  Ever consider an exotic vacation to Mexico? If you want to save more money while still getting a great room, why not consider the Courtyard Leon at The Poliforum? Sometimes going somewhere not as well-known can save big bucks.

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Cashback

Did you know that it is more than possible for you to earn cashback on your next hotel stay? All you have to do is sign up through a cashback website. When you do this, you can then purchase something listed on their site. Every time you do this, you will get some money back. If you use sites like this for every aspect of your vacation, you’ll soon find that it isn’t hard for you to really get a good result out of your travel and it is a great way for you to take some extra holiday money with you.

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Trade for a Villa on Family Holidays

When you go on a family holiday, instead of booking a hotel, consider going for a villa. You can save hundreds by doing this and this doesn’t just have to apply if you are going abroad. It is more than possible for you to stay at a B&B and it is also possible for you to rent some seriously luxurious hotels out of season. You can always haggle with them as well. In some instances you may even find that they are way nicer than the chains you have looked at. You can also try to work with the person who owns the B&B to ask them if they would be willing to give you a discount if you write a review or even if you shared their site on your blog. Publicity is always a great tool and hotels are usually very happy to take advantage of it.

Lastly, don’t forget to check sites like Airbnb and VRBO. People all over offer great homes and rooms for lower cost than many hotel chains and offer great value.

 

It’s more than possible for you to get a great hotel and at a very low price. The only thing that you really have to do is your research while also making sure that you look into all of your options. No matter where you go to stay, always check their reviews first!

Cruising Doesn’t Mean Your Wallet has to Take a Bruising: Getting the Most from Cruise Line Deals

Saving Money, Vacationing in Retirement, ,

Going on a cruise tends to appear rather frequently on lists of things that pensioners want to try out in their retirement. But many think that heading out to sea is out of their means and thus throw their ambitions to the wind. This doesn’t have to be the case! There are plenty of ways that you can land yourself on the deck of a liner with a limited budget. You just have to be a little savvy with your spending and look out for the best opportunity to book your trip. Here are a few tips and tricks that can ensure you get to experience the cruise of a lifetime.

Getting the Most from Cruise Line Deals

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Seize Opportunities

Luxury cruises may find that they have a couple of places available at short notice. Perhaps some passengers have canceled their booking without much notice, or one room is left over after a particularly large group booking has taken up the rest of the liner. In situations like these, liners may offer discount deals due to the inconveniences that late notice entails. You should seize these opportunities. If the cruise is all-inclusive, you are likely to be well catered for and will simply have to pack a few personal belongings, your sun cream, and your passport. Check out the website Vacations To Go for great deals. They allow you to signup to receive email notifications of the latest deals found.

If you don’t have the cash at hand to book last-minute, you can always take out a personal loan and pay the amount back to a lender in smaller, more affordable installments. This means that you can take advantage of the reduced price of the trip, which may no longer be available by the time you have saved the amount for yourself. The last minute trip savings may far offset any loan interest you will pay on the loan. UK readers should check out GoBear comparison and those in the US check Bankrate for the best offer available to you.

Getting the Most from Cruise Line Deals EZ

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Travel With a Companion

Cabins with two beds tend to be more affordable than cabins with one, individual bed, as you can split the overall price between you and another person. So find a travel companion(UK) or check out Friendly Planet and head away together. You could also share travel down to the liner itself and back (whether you share the drive or you decide to take a taxi and split the fare). This will make the trip cheaper and also more pleasurable, as you will have company throughout. Just remember to choose someone who you will feel comfortable inhabiting a relatively small space with for an extended period of time.

Haggle

Believe it or not, you can still often get away with haggling when it comes to engaging with estate agents and cruise liner companies. If you have seen a similar cruise offered by an alternative brand for a cheaper price, chances are that others will match the price in order to win your being their customer. So, take a look at all of the options available to you. Choose your preferred cruise liner and see if you can knock the price down a little. It’s always worth a try!

These are just a few ways to cut the overall costs of heading away for a break on a cruise liner. Try them out and you could save yourself a few bucks that can be put away for a rainy day down the line.

Move to Indonesia for a Comfortable Retirement

Early Retirement Lifestyle, Relocating in Retirement, Retiring Abroad, Saving Money,

We work most of our lives to ensure that we have a good quality of living and can look after ourselves when we’re older. The norm is to settle into a certain space and stay there for the rest of your days once you’ve retired. But why settle for average? You’ve spent enough time in the same spot. It’s time to focus on yourself a little: mix things up a bit, seek adventure, explore the world. A great place to start your retirement could be Indonesia. This unitary sovereign state and transcontinental country is located mostly in Southeast Asia, however it does have some territories in Oceania.

If stretching your retirement savings and getting variety in the bargain is what you want, then this might be the place for you. It has over seventeen thousand islands! So there’s bound to be somewhere within its realms that will cater to you, your wants, and your needs absolutely perfectly. Here’s everything you need to know about getting the funds together for a comfortable lifestyle in this beautiful overseas location.

Indonesia for a Comfortable Retirement

Properties

One thing to bear in mind if you are considering renting a property for the long-term in Indonesia, the total cost may be charged up front. This may be undesirable as you might find that you don’t gel well with the location, the given property has issues, or you simply want to move somewhere else. However, this rental policy is understandable, as landlords don’t want to let other opportunities slip should you hand in your notice to leave unexpectedly.

If you have savings set aside and are considering moving to Indonesia more permanently you could sell up your current home and use the proceeds towards investing in a property of your own. Of course, prices will differ according to the area you choose to buy in and the quality of the property you show an interest in. That’s a given, but you’ll be surprised how far your money can take you there. For an example, just take a look at some of the properties on https://rumahdijual.com/bekasi/rumah-murah or realtor.com-Indonesia.

The variety is astounding too. Regardless of what you have in mind in terms of design, size, or stories, there will be something for you. The exact location of your property will have an impact on its price. The following cities tend to have varied costs, so from most expensive to least expensive, good options are: Jakarta, Bandung, Denpasar (Bali), Bengkulu, Surabaya, and Yogyakarta. Take a look around. Remember to always first visit and understand all the rules/laws about owning real estate before putting an offer in. It’s always important to be absolutely certain.

 

Cost of Living

While Indonesia boasts some of the most expensive hotels in the world, the cost of living in the region is one of the lowest in Southeast Asia. People are drawn by its stunning landscapes, beautiful beaches, and it’s friendly people.

Indonesia for a Comfortable Retirement on budget

Dining

As with pretty much anywhere in the world, cooking for yourself is going to save you a lot more money than if you decide to dine out for every meal. However, when it comes to dining out in Indonesia, you may actually be able to afford it! Street food and local restaurants produce brilliant quality snacks and meals at an unbelievably low price. Street food can generally be sourced for one or two dollars and a meal in a cheap restaurant will often range from three to four dollars.

Just remember to avoid international chains where possible, such as Mcdonalds and Starbucks, as prices are just as high as they would be anywhere else. There’s such better quality and value elsewhere that you can’t help but spurn fast food options, opting instead for local cuisines.

Also bear in mind that imported food will always cost more too. So opt for local brands in the supermarkets. Just be careful if you have allergies, it’s good to have someone at hand who can help to translate ingredients for you.

 

Transportation

You’re going to want to get out and about to explore the local area, places further afield, and generally go about your day-to-day business. So how much can you expect to fork out for transportation? Well, public transportation in Indonesia tends to be very affordable. The bus can generally be taken for less than a dollar and taxis will charge around thirty cents a mile. Bargain!

If you want a little more independence, you could hire a scooter. These are, again, cheap and can generally be rented for a few dollars each day. This is great if you’re simply using them on an as-needed basis. Just be sure to have the necessary documentation to ride them. You might like to practice a little, or travel on public transportation for a while before taking to the roads yourself. This allows you to get used to the local style of driving, as well as picking up on road signs, road markings, and other things that will help you to improve your handling of the road once you’re on it  yourself. If you want to drive your own car, gasoline is around seventy cents a litre ($2.65 a gallon), which is again pretty affordable. In terms of getting from A to B, you’ve got it pretty good in Indonesia!

 

Entertainment

Now, besides exploring and taking in the astounding scenery, you’re going to want to do something that will keep you entertained and occupied now and then. So, if you’re searching for something different to a meal out, what can you expect to spend? Well, there are plenty of local bars and nightclubs too. So if you’re into that kind of thing, you’re well catered to. Alcohol isn’t cheap and you can generally expect to pay an entry fee to clubs, but that’s pretty similar wherever you go in the world. However, if treated as an occasional treat, it won’t hit you in the wallet too hard.

Then there are things like the cinema. Cinema tickets are much cheaper than home, coming in at around four dollars a ticket. There’s plenty of free entertainment to be taken advantage of too. On warm days, head down to the nearest beach, bask in the sun’s rays, lounge on the sand and take a dip in the ocean. Visit world-renowned monuments. Climb the base of Mount Bromo. Visit Tanah Lot water temple with its expansive water views. Explore Borobudur, an iconic historic Buddhist temple. The list goes on and on. With so many options of things to do, you won’t have a dull day for years to come. There will always be something to get you up and out of the house and keeping active, both in body and mind. What more could you possibly want from the place that you live?

Consider Indonesia for a Comfortable Retirement?

All in all, Indonesia could prove to be the ideal place to head for your retirement. Sure, it might be pretty far from your current location. But that’s half of the beauty of it. You get an escape, an adventure. You’re thrown out of your comfort zone and forced to be brave and boost your confidence. You will be immersed in an entirely new culture, tasting new foods, listening to new music, and seeing new sights. You will learn another language, meet people you’d never have met under any other circumstances, and revel in some of the most astounding scenery that the world has to offer.

When people pay a fortune just to visit this place, why not move on a more permanent basis? The fact that it’s affordable is an extra added bonus! So, start doing your research, scour the property market, learn a few basic bits of the local language, and pay it a visit. You could be calling this wonderful place home sooner than you think!

4 Simple Ways To Turn Your Early Retirement Dream Into A Reality

Budgeting, Managing Debt, Rat Race, Retire Early, Retirement Plan, Saving Money, , , ,

We all ache to quit the rat race. The daily grind of the commute, dark winters, a stressful office environment and performance reviews can lead us to wonder why we put ourselves through it. Surely, there must be more to life? The thought of retiring at 65 fills you with dread – that’s another 30 or 40 years with your nose to the grindstone. It doesn’t have to be this way.

You see stories popping up every now and again, complete with pictures of relaxed, smiling faces. People who have managed to retire at the age of 40, 45 or 50. With more than just a touch of the green-eyed monster you eagerly read their stories. Then only to discover that they sold their houses, bought a van and camped in their all too kind neighbors garden for a decade or more. This isn’t something that you’d entertain. Isn’t there an easier more appealing way to achieve the dream of early retirement? There is indeed.

I was age 40 when I made the decision to do whatever it took to retire young. Retiring early doesn’t necessarily mean living like a peasant for your remaining working life, eating gruel and never switching on your heating (although this is an option!) Early retirement means planning, planning and more planning! You need to know what you will be doing financially every day for the rest of your working life. Whether this is ten or twenty years.

You need to decide when you want to retire. It pays to not be too ambitious. It’s best to settle on an age that realistically gives you enough time to save enough and pay off all of your debt. If you’re in your twenties, you may be able to choose an age beginning with a four. If, like most people reading this post, you are a disillusioned thirty-something, fifty is the ideal age to shoot for.

Pay off all debt to reach Early Retirement Dream

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Debt

Before you do anything else financially, you must get your debt paid off as swiftly as possible. This means getting all of your monetary ducks lined up in a row. You need to be aggressive and utilize any spare cash to pay off credit cards and high-interest loans before you take on your mortgage.

Make a budget and stick to it. Your list of incomings and outgoings needs to be as accurate as possible. Include everything from the blueberry muffin that you pick up as a treat from a well-known coffee chain every Friday to the gourmet trail mix you love to snack on at work. This way, you’ll be able to spot the items that you can forego immediately. You’ll be surprised at just how much this will save you over time.

Any disposable income that you have after paying your bills, food, mortgage and fuel costs must be used to pay off debt. Other than maxing out your company’s retirement 401K match amount, forget the retirement savings for a little while. It’s no good managing to retire at 50 with $500,000 in the bank if you still have $200,000 in debt. Get to work aggressively paying off a large chunk of your high-interest debt every month.

As you see the debt figure decrease, you will be even more motivated to continue. When the higher interest loans and debts have been repaid, you can then think about paying off your mortgage and having an asset in your name. Owning your humble abode outright will be a huge benefit to you come retirement day.

Mortgage free helps turn Early Retirement Dream to reality

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Home Loan

The joy of a home loan is that it tends to be repaid at a much lower interest rate than store cards or secured personal loans. Even so, you need to pay back your mortgage early saving you money on interest and leaving you with some bricks and mortar. Check the small print of your home loan agreement. The chances are that you can pay back ten percent of the remaining balance of your mortgage in over-payments every year. Utilize every penny of this allowance and ensure you don’t go overboard otherwise you’ll be hit with any penalties there may be. By doing this, you could pay off your mortgage in less than half the time of the original term.

If there are no early payoff penalties in your loan agreement then you can pay any extra amount you can without restriction. Being mortgage free at retirement will bring both peace of mind and a much lower retirement lifestyle cost.

Saving money to Turn Early Retirement Dream into reality

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Savings

While you are beginning to shift the mortgage debt, you can start to think about reinvigorating your savings plan. Saving can be hard with the wants and needs of modern life. Here, you’ll have to make some very tough decisions. If you love traveling and take three or four holidays/vacations a year to exotic, far-flung destinations, then this obviously has to stop or be considerably tailed back. Cut back to one annual vacation but make it a good one. Take a couple of weeks overseas being a little bit more financially aware when you are booking your flights and accommodation. Perhaps even cutting back to every other year and travel to great destinations closer to home in the between years.

First class isn’t a realm you should be setting foot in if you want to retire at fifty. Remember, wanting to retire early shouldn’t be to the detriment of your quality of life. It’s all about financial awareness. Finding a sustainable balance between your having purposeful spending discipline while still living a full life.

If you enjoy a busy social calendar, you may need to cut this back a little or adapt the way you meet up with friends. Dinner parties are a great way of cutting the cost of informal meets. Eating out can soon see your savings pot dwindle so save the restaurants for special occasions.

If you have a commute to work every day and need a car, don’t buy straight off the new car lot. Utilize a company discounted car policy if the business you work for has one. If not, buy second-hand and realize that you are using a vehicle to get from A – B, not as a status symbol. If all goes well financially you can leave that for when you are in the joyous throes of early retirement.

Early Retirement Dream needs investments

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Investing

As you build up a little more capital, you may find that you have spare cash burning a hole in your pocket that could work for you more lucratively than if you placed it in a savings account. Consider venturing into the world of real estate. If there’s a new house for sale in your local area or in an emerging overseas market, take a look and consider its potential as a rental. By investing your money in bricks and mortar and seeing a second income from it, you’re making your money work for you more aggressively. Do the math and make sure that any rent you receive covers the mortgage. Real estate generally holds its value, and you could see a high return on your investment when it’s time to sell.

You could go down the stock market or Forex trading route. While lucrative, these forms of active trading investment also carry a greater risk. You can set up dummy accounts with agents and try your hand at the stocks before having a go for real. If you have a good decade before you hit fifty, it might be worth having a flutter on the markets. However, it pays to seek professional advice before launching yourself into the trading world.

The key to sound investing is not putting all of your eggs in one basket and spreading the risk. A varied range of high, medium and low-risk investments can ensure a well-rounded portfolio that should produce fruitful rewards. Most successful early retirees will find investment success in low-cost stock and bond funds.

Last Words

Retiring early is the dream of many yet realized by only a select few. The path to early retirement is bumpy and not for the fainthearted. You need to be proactive and aggressive, and it does involve some personal sacrifice. However, you need to weigh up the pros and cons of altering your lifestyle for the betterment of your early twilight years. It is a major life changing commitment. But by heeding this advice, you’ll be well on your way to a prosperous early retirement.

Creating Your Early Retirement Lifestyle: Beware The Comfort Zone Rut

Early Retirement Lifestyle, Non-financial Aspects of retirement, ,

The greatest thing about early retirement is having the time and freedom to do what you want to do, when you want to do it. But when creating our early retirement lifestyle it’s easy to fall into the comfort zone rut. Ruts are easy to fall into and hard to get out of. We constantly tip-toe the ruts in life’s path. But because we are still going in the direction we want they sneak up on us and we fall in.

Unfortunately we can be rut-unaware because we are actually enjoying what we are doing as we fine-tune our early retirement lifestyle. When we are no longer obligated to a boss or work it’s easy to get a little lazy and stick with what’s comfortable. Same goes once reaching our retirement freedom goals. The comfort zone rut isn’t bad because of what we do while in it. It’s more about what we miss out on as we happily skip along early retirement easy street.

I Love My Comfortable Early Retirement Lifestyle a Little Too Much

I just recently had an OMG  moment. We had a long planned vacation where we had an out-of-state family wedding to attend followed by a 10 day beach vacation. I came face to face with the fact that I didn’t really want to travel. The kicker is I really enjoy visiting with distant relatives. Not to mention hanging out among palm trees and the ocean. During the weeks and days before leaving it messed with my sleep and added stress as we prepared for the trip.

Then it came to me. What it really was about is that I love the early retirement lifestyle at home that I have created for us. I didn’t feel like taking a vacation from it. I was in a comfort zone rut.

We did go on the trip and during our travels I realized the importance of pushing myself out of my comfort zone. I took account of what I would have missed and what I have been probably missing lately and neglecting in everyday life.

Being obligation free and having the freedom to always choose ‘easy and comfortable’ over ‘not sure’ meant a lot less spice in my lifestyle. I not only enjoyed our vacation but I met many interesting people. I had great conversations and gained new insights that I would have never experienced if I had elected to stay home in my comfort zone rut.

Here are a Couple of My Observations:

A Break in Routine Can Be a Good Thing

The thing about early retirement lifestyle routine, even when it’s all freely and happily entered into, is it becomes simply a habit. We no longer make a cognitive choice. Not that it’s bad since we do enjoy what we are doing, but in the grand scheme of things it is limiting. It is both enjoyable and comfortable but at the expense of passion and excitement. There are things to be learned from stretching beyond the comfort zone.

What I will now consider in life and restaurants is to go ahead and occasionally pick something different from the menu instead of always picking the same things that I know I like. There will be some selections that will pleasantly surprise me and others not so much. But I will never know if I don’t taste what is available to experience.

Be Open to New Perspective

It isn’t surprising that we gravitate more freely to what we agree with or how we see things. We move toward what closely matches our own identity and thinking. Our ruts can leave little chance of exposure to anything different. We never challenge our views and the ways we see things beyond our perception from a distance. Stretching past our comfort zones allows us to see things from the different angles and have a better understanding of the world around us.

This is where I see traveling in retirement adding tremendous value above just getting a leisure fix. However, I think keeping an open mind and ditching the comfort rut in our day-to-day offers a chance for gaining new perspective too. I don’t have to adopt newly encountered perceptions outside of my own. But I experience personal growth by advancing my understanding.

Appreciate Our Early Retirement Lifestyle

I never stop appreciating my hard-won early retirement. But after removing myself from my comfort rut and a lot of self-reflection, I now feel like in some ways I took for granted everything I really do have. Sometimes it takes the stress of being uncomfortable to place value on the life we get to live. I believe it enhances our gratitude when we turn off the autopilot of routine and habit. I love the living part of my early retirement lifestyle. But it takes a lot of things to pull it off. Like Heath, home, loved ones, etc. When something disrupts my comfort or plans I would get agitated. But there isn’t time for that. I shouldn’t choose agitation and frustration to be in my early retirement lifestyle and instead focus on what I do have with appreciation.

By regularly counting my blessings I will appreciate my early retirement lifestyle and all that I have even more. I don’t use a smart phone. But I always see many people walking or sitting at the coffee shop, even in the company of someone else, with their head down looking at their phone. I believe the comfort zone rut is similar. It’s where we can be preoccupied with our comfort zone existence without recognizing everything going on around us nor interacting fully within our world. There is value in appreciating what we have and the moments we are in. 

Comfort Zone Rut Caused Social Isolation

I am fortunate to have a decent sized social circle. It consists of people I really enjoy having in my life. But it’s obvious to me that it isn’t growing and it may be shrinking due to some more distant relationships being neglected. I think in a way my comfort zone rut has caused a certain social isolation because I no longer reach out to people I care about who are a little more distant from me.

It’s easy to stay connected to people who are in close proximity. The comfort zone rut takes the path of least resistance. We can be blindly satisfied while we neglect others we care about. Early retirement when we are young and active means having the time to whatever we want. Part of that should be occasionally taking time to reach out to everyone we care about both near and far.

What It All Comes Down To

Having the freedom to do what we want to do, when we want to do it, in early retirement doesn’t mean we should only choose what’s comfortable. It is too easy to live an autopilot existence, playing it safe, so to never feel uncomfortable. Life is short and there is so much in the world, even within our community, to experience beyond our comfort zone habits.

I loved my early retirement lifestyle so much that I didn’t really want to vacation from it. I forgot how much I need to have some discomfort in my retirement in order to grow, keep things interesting, and improve myself. It’s now clear to me that comfort is an easy rut to fall into and I will be more cognizant about the daily choices I make. The comfort zone rut will sneak up on me again. It will take a constant effort to recognize it happening and snap out of it.

I think we all could choose to keep our heads up to look beyond our comfort zone and add a little more spice, passion, and excitement to our active early retirement lifestyle. I know I need to occasionally push myself to pick something different from the menu, care for all my relationships, and constantly count my blessings.

Some Early Retirement Observations

Early Retirement Lifestyle, Non-financial Aspects of retirement, Retire Early, , ,

Seven Plus Years In Retirement: So Far, So Good. 

I’m just back from a short four-day Colorado mountain vacation. It was nice to just let go, relax, and count my blessings. The best part was all the laughs. It has me happily reflecting on the past 7 years of my early retirement and taking note of some early retirement observations.

As good as things are now, I can remember before retiring all the fears and questions that I had. Studying and planning can only do so much. At some point we have to jump in and either sink or swim. With anything we do there can be surprises.

Here Are a Few of My Early Retirement Observations

Money

I will start with money because that is what most people are concerned about when retiring early. Will it last? Will it be enough? I think that captures most basic initial concerns. All those warnings that the first 10 years are critical for long-term success are enough to cause anyone pause.

When I first retired EOY  2009 the market was down. Then it slowly climbed up to record highs. In late 2015 it took another dump. Now it is even higher. That’s just in the last 7+ years. Maybe it’s the next 3 years that makeup the critical first 10 that will make or break my retirement funding chances. I doubt it but if it tanks I will deal with it.

My Early Retirement Observations – I am beyond sweating about money now. It isn’t that I have a massive portfolio, it’s just enough. But the experience of living off of my portfolio and seeing the value of diversification has me a believer. Sure, it can still hit the fan. But that is why I keep a bucket of cash to live off of when another financial downturn occurs. I still argue with my CFP about how much should be in there but that is another conversation. We do balance each other out.

We use a kind of hybrid 4% withdrawal rate. When the market dove recently we just effortlessly reduced some spending. Down-market conditions can bring bargains. We took advantage of some Hawaiian travel discounts offered then (we had budgeted and saved for years for a return trip to HI). That said, having a realistic budget and sticking to a financial plan has been the ticket for my early retirement success. So far, so good.

Working In Retirement

I had always intended to retire early and often. Not everyone intends to retire and then go back to doing something they always wanted to do for pay. But many folks do and it was kind of my main thing for many years. Before retirement number one I was constantly warned about the challenges of being age 50+ and landing an opportunity. I now look back at my encore career and other retirement gigs and have to smile.

My Early Retirement Observations – When it came to working in retirement there were some challenges but nothing insurmountable. Working in retirement was better and more rewarding than expected. I was picky and stuck to my guns which flipped the whole working dynamic. Working in these conditions can be fun. The big surprise is that as rewarding as it was I have no desire to jump into another paying gig. I think it’s because I have checked off all the boxes of things I wanted to learn, try, and do.

I have had many chances to get back in the game and have simply said no thanks. I have no idea what will happen next in this aspect. I believe the key is to just stay open to opportunities so I will be able to recognize them. When something comes along that’s aligned with my interests and passions then I’ll just give it review and consideration. I will know it when I see it. I’ll just keep doing my thing and If none come my way then no worries. So far, so good.

Other People

When you don’t have constant proximity to people then relationships come and go depending on the effort made to stay close. It’s easy when you are all shackled together in the rat race. I look back at the past 7 years and am amazed at how my social circle has grown and shrunk. Some faces and names fall off while others are added.

My Early Retirement Observations – I have found that it’s easier to put effort into keeping good relationships where both parties are willing to stay connected. Especially when there are still common interests and our place in life are closer together. I used to worry about it but now I get it. I am the one who jumped the rat race ship that was our main common tie. I have no doubt that we will reconnect as time goes on. Many of my old friends and rat race comrade’s lives will become closer in sync . As far as my social circle and the people in my life are concerned- So far, so good.

Appearance – Clothes, Shoes, and my Curly Hair

Early Retirement Observations
Frank, my favorite monster. T-Shirt

I always saw articles where you can adjust your clothes budget down once you retire. Amen to that. In my case it is way down. I look in my closet and actually have T-Shirts, a couple Polo Shirts, Aloha Shirts and a few of Flannel Shirts for winter hanging there. As for footwear, I haven’t bought anything but athletic shoes and flip-flops since retiring. My work/dress shoes get so little use that they will out last me. I also seem to go a long time between haircuts. I think it is part my non-conformance attitude about society and life. I just go in for a cut when it bothers me. That can take 6 months.

My Early Retirement Observations – We held onto clothes we don’t wear anymore or need for way too long. I just took 100 pounds of our good clothes to Good Will. I think once we retired that we weren’t sure what we would need. I laugh at all the time we wasted looking at them in the closet and just not paying attention. I did wear some when in my encore career so it hasn’t been 7 years of clothes hoarding but still way too long. Better late than never, the closet has a lot of room now. So far, so good.

Retirement Hobbies, Interests, and Passions

I am amazed how some things have cooled while new things have appeared out of nowhere. Mostly what was once a big hot deal in my life is now only warm. I have to believe that it is only natural. As new things come into play, aging, and getting better at this retirement thing I see my priorities shifting. My interest now focuses even more on family and health, both physical and mental.

My Early Retirement Observations – Some of my budgeted spending for things has dropped substantially as my interests and passions have cooled. I didn’t expect that, or at least not to this extent. I still do most of the things I had planned to do in retirement but after the first sprint years I now have a marathon pace. Just part of the early retirement experience and I’m continually getting better at it. So far, so good.

Health insurance – The Talk of the Town

Everyone is talking about health insurance. Will they or won’t they. When I retired I did it with a retirement medical insurance benefit. It cost $470 in 2009 when I first retired. Now I pay $970 for a much higher co-pay plan. The company I retired from was bought a few years back and the new company hasn’t said yet whether they will still allow us retirees to continue buying into their group employee plan. Health insurance has been my biggest budgetary item in retirement.

My Early Retirement Observations – Just like everything else there are no absolutes and I have to roll with the waves. I always thought the ACA was an awesome early retirement alternative. If I lost my first career retirement health benefit it would be a financially painless move to the ACA. However we don’t know what is in the cards right now because of F’n politics.

But if there is one thing I have learned from my 7 year early retirement experience is that I would rather do anything than be forced back into employment servitude. I feel comfortable knowing that I will do just as I have been doing. Figure it out and stay living my life on my terms while using the personal finance smarts that got me here. So far, so good.

Last Words

One of the things that made me laugh while on my short vacation was a T-Shirt sold in all the gift shops.

Calm Down

You’re Just High

(Mountain Town Name, Colorado, Elevation XX,XXX)

I guess that “Calm Down” could apply to anyone who is thinking about retiring soon and is worrying. Or anyone who has retired and still getting some experience living the early retirement life. Especially with all the health insurance issues being up in the air. Don’t get me started on some’s Social Security and Medicare gutting ideas.

Those issues aren’t the last that will show up in our retirement. We deal with things when they become more clear.

My biggest early retirement observation is that being high on the financial achievement of early retirement means never wanting to come down. But hey, we got here and the same smarts used to get here will be used to stay here. Just stay calm, stick to our plan, and work things out.

That is exactly what I remind myself about. I’ve got 7 years of early retirement to look back on and I’ve learned plenty from them. So far, so good.

Retiring Well: Looking Beyond Finances

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Retirement brings freedom and options. With that comes many choices that retirees must make. Obviously having our finances in order is a key to retiring well but that alone is no guarantee. There are two questions I always ask myself as a guide for keeping me on my retirement well-being track. Two questions that I believe can help anyone avoid doing something that will mess with successfully retiring well.

Having enough money available to live the retirement lifestyle you want and can enjoy is primary to retiring well. There are many online retiring well financially geared articles and plenty here on this Leisure Freak site.

Of course there should always first be financial analysis. Deciding whether we can afford to do something or how our spending, portfolio strategy, budget, saving, etc. will impact our long-term retirement funding. After that is settled comes the two questions to make sure we truly retire well.

Retiring well means retiring without regret or unnecessary backtracking to repair a bad decision.

Believe me, retirement and its freedom brings a lot of options and decisions to make. Retiring well means living life on your terms and doing so purposely. Retiring well means retiring to something, not just from something. Nobody plans on retiring into a void. That isn’t retiring well. Neither is retiring and taking on bad projects, strangling obligations, putting up with difficult people, being unnecessarily idle, or accepting a unfulfilling retirement job.

Retiring WellRetirement is much more than our finances that support it. There is the living part of retirement that must be addressed so that we can retire well.

Retiring well must include our avoiding making any bad move that strays from what it is we really want in our retired life. We get to call our own shots and everyone makes mistakes. But I use these two questions to make sure I am truly on track to a no retirement regret decision.

Two Questions To Ask Yourself To Help Ensure Retiring Well

Question #1- If money was removed from my decision, would I still do this?

By answering this question we force ourselves to focus on the importance of the decision. Its importance as it relates to what we truly value in our retirement.

I definitely used this question in my decision to retire early the first time.

It was the end of 2009 during the recession. My portfolio was significantly down but the retirement calculator numbers still came up with favorable but tight results. When asking myself this question the answer was YES. A financial only mindset would have probably caused more retirement delay even though I was truly ready to move on to my freedom. Answering this question gave me the push to clear all the economic uncertainty. There will always be less than perfect financial conditions.

I have also used this question when presented with a paid opportunity.

I focus on skills and experiences of interest and passion when it comes to working in retirement. Sometimes the salary can have me momentarily stray from my planned path. In those cases the answer to this question is NO. But for one stepped down lower paying gig the answer came up as YES. It checked off all of my interest and passion boxes and I enjoyed every minute of it.

This question was also prominent in our retirement decision to not move to a less expensive and snow-less location. Although our financial analysis showed we could improve our finances by making the move. It also showed we could stay put without negative financial issues. But by answering this question we were able to focus on what we really valued. That is, being close to our children and grandchildren. So the answer was NO.

There have been times when our financial analysis showed that we best decide against something.

But by asking this question we gauge the importance to what we value in our retirement. In some cases we really did want to move forward and answered YES. We then made necessary budgetary and income adjustments to counter the financial negatives.

Question #2- If I knew I only had 10 years left to live, would I still do this?

This question is the ultimate ego tamer when it comes to work, activities, and relationships. It forces us to remember an undeniable truth that we are finite and puts our mortality into the equation. It has us prioritize what is most important to us.

When it comes to work opportunities it counters heavy financial justifications and our ego.

In the case of relationships it has the power to force us to focus on where we are and where we really want to be.

How we want to really handle a bad relationship, what to do about grudges we may have, or close the distance between friends and loved ones that we want in our lives.

It has us look differently at social activities that we may not feel like participating in.

It does so by adding, do I really want to miss this opportunity to be with those I care about? Answering this question can change our focus because there is no guaranty of tomorrow.

This question comes up for me with work opportunities.

They checked off all of my interests and passion boxes after passing the first question that removes money from the decision. But I have answered NO for this question because the commitment was too long. Other times the project looked and sounded perfect but I had no respect for the company or its leadership and policies. One in particular opportunity had very tight deadlines covering many months. It would have made taking time-off for family trips or vacations too difficult to fit in.

Sometimes I need this question to silence my ego when it pushes me to investigate or do things that are not aligned with my retirement values.

It allows me to stop wasting my time on things I do not value. There can be many reasons why I wouldn’t want to waste any of my finite time. I then answer NO to this question.

This question has me prioritize relationships that I truly value so I can strengthen them.

I also use the question in how I view and limit relationships with people I really don’t care for but still have because of business or other connections.

In Closing

Retiring well does need having our finances in order. But there is the living part of retirement that counts just as much. The freedom that retirement provides also brings many options and decisions to make. But decisions dictated by a singular financial mindset may cause a retirement of regrets.

I use the above two questions to enhance my retiring well decision process. I am sure there are many others that can be used to keep us on the path to enrich our retirement with what we truly value. For instance questions about our health which is also important to retiring well.

Hopefully these two questions has you thinking about questions that go beyond finances that you can use as guidance toward your retiring well.

Dealing With The Dreaded Question, “What Will You Do When You Retire?”

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It’s always great when you finally get to the point where you can stop work and just do what you want. But after a lifetime of work, it can sometimes be a bit tricky to know what to do. What’s more, you’re constantly barraged with questions about what you are going to do by friends and family. If you don’t have a plan, it can feel a little uncomfortable.

Here, we’re going to look at how to deal with the question “what will you do when you retire?” Let’s take a look at what you can get up to.

What Will You Do When You Retire?Flickr

What Will You Do When You Retire?

Volunteer

When retirement arrives, you’re suddenly able to give more of your time to your community and good causes. There’s plenty of things that you can do. You can help out at the local library, you can mentor children, or you can join a charity. Think carefully about the type of organization that motivates you. What have you been passionate about during your life? How can you direct your efforts towards fulfilling these passions in your volunteering efforts? Perhaps you’ve always wanted to do something to combat childhood diseases. You could join a fundraising campaign for a charity that researches cures for these illnesses.

Take Up A Hobby

Retirement HobbiesFlickr

The best hobbies for retirees are those that you can do in conjunction with other people. Horse racing, for instance, is a great place to start. There’s nothing more exciting than knowing you’re going horse racing tomorrow with friends. Race day always brings a sense of energy and excitement. And you get to meet lots of interesting and talented people who share your interest. Other team activities like golf are a great option too. Why not just do both?

Start A Business

You might think that all entrepreneurs are in their 20s and 30s. But the truth is that more companies are set up by people in the 60 plus age bracket than any other. That comes as a surprise to many people, but when you think about it, it makes a lot of sense. People in that age group have worked all their lives. They’ve usually got a pot of money saved up. And often, they’ve been in business for a long time. With both experience and savings, starting a business is tempting. Many people go their entire careers wishing that they could be their own boss. In fact, one of the reasons why people are so desperate to retire is so that they can escape their job, not their work.

Make Some New And Interesting Friends

Make new friends in retirementWikimedia Commons

For the last forty years, you’ve spent most of your time working. It meant that you didn’t always have much time to spend with your friends. But now that you’re retired, you’ve suddenly got a lot of time on your hands. It means that you’ve got more time to invest in the people that you know.

Retirees, however, don’t have to stick with their regular circle of friends. They can branch out and invest in relationships with people they otherwise wouldn’t have time for. Making lots of relationships like this will help you stay younger for longer.

Early Retirement Reality vs Assumptions

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Every day people are reaching their financial independence goals and their hard-won FIRE  freedom. If you are one of them or soon will be one of them, then that is when you have the Early Retirement Reality vs Assumptions issues to understand. For some who are looking forward to their new adventure there are two general areas that can cause concern and even confusion when their early retirement reality clashes with their assumptions.

Getting to this place of early retirement means finances are most likely the easiest to master. There are financial planners and online resources that can be used to fine-tune your plan.

A post-retirement plan is needed to figure out:
  • How much is needed after your retirement to keep in your emergency funds.
  • Your investment allocation.
  • What sustainable withdrawal strategy to use.
  • How much is your monthly cash flow amount.

There are two general areas that can cause concern when early retirement reality vs assumptions misses the mark. Finances is one of them but it is the other one related to what we will do in retirement that can cause the biggest mismatch in our expectations.

That being, now that you are no longer spending hours at work, how will you spend all of that free time that financial independence-retire early (FIRE) will be providing you?

After years of being a successful ambitious income earning, super-saver and go-getter, your financial assumptions may be the closest to your retirement funding reality. The harder of the two early retirement realities to reconcile could be what to do with the time you used to spend while working.

Before actually pulling the trigger on early retirement it is far too easy to make general assumptions about our new free time based on all of our pre-retirement day dreams.

Early Retirement Reality vs Assumptions: Your New Lifestyle Cost

Will your lifestyle cost less, the same, or more after early retirement?

Reaching early retirement normally means that there was a sustainable budget and a certain amount of frugal living that had to occur throughout your FI journey. As long as that same mindset is aligned with your early retirement lifestyle assumptions then there will be limited surprises here.

My wife and I created our early retirement lifestyle while we were still working. We simply added to our retirement budget enough to cover a little more travel and some for inflation projections. We could see what our new early retirement budget should be.

Obviously some costs will go away or be much less while other costs, as in our case travel will increase. It is important to honestly look at how much your monthly spending will be after your retirement.

Costs that traditionally decrease. Or will they?

Job/Career/Work related costs. No more having to buy work clothes. Suits, ties, dresses, overalls, steel-toed boots, tools, uniforms, etc. However we all have to eventually buy clothes for ourselves. What is your honest retirement clothing vision? Lots of recreational related or sports specialty clothes or equipment? Shorts, t-shirts, and flip-flops? It is now time to get real with yourself.

Work Commuting Costs. No more bus/train passes or fares, parking fees, and a big reduction (for most people) in fuel and auto maintenance costs. Perhaps even a reduction in the number of autos you have thus reducing car insurance costs too. But if you are planning on increasing your travel and that is by way of your car or RV then these auto related cost may stay the same or be even higher.

Eating Out. Having more time in retirement means more time to prepare your own meals and eat healthier. If your busy working lifestyle included much more eating out then there can be a big savings to your budget in this area. But if you are planning on a lot of travel then this may not be the case.

Utilities. For many of us while we were away all day at work we seasonally turned our home’s heat way down. On the flip side we turned our air conditioning temperature setting way up. If now we will be home most of the time, our utilities may need to be looked at as whether there will need to be a change in our utility budget.

Having more time to look for and use discounts

Many early retirees are already discount seeking pros. It comes with living frugally to get to financial independence. However my wife and I found that once we retired we became even better at it.

Another area that we can take advantage of discounts was in last-minute and happy-hour deals. Flexibility in our travel and other activities can be a new money-saving advantage to the early retiree.

Early Retirement Reality vs Assumptions: What to do with all your hard-won free time

Those that reach early retirement are usually an ambitious lot. They are most likely not the type of people who envisions a retirement of watching TV all day or parking their keister on a rocker for the next 30 to 40 years.

I can bet many of you reading this are saying, “I know exactly what I want to do once I retire.” The reality of this issue may surprise you at how unprepared you are about your assumptions.

The non-financial aspects of early retirement are as important as all the financial ones. It is what we retire to that makes for a happy, healthy, and enjoyable life. It takes an honest assessment of what it is we want to do in our retirement with all of our free time.

Spending time traveling

I mentioned above considering plans for travel as it relates to an early retirement financial reality-check. It also comes into play for how we spend our time. Most people can’t travel year round nor want to. Take the time to set a realistic vision of how much of your time you will be spending in this activity.

Staying social and connected to your family, friends, and community

Many early retirees find that their social network was mostly work related. I sure did and it took a concentrated effort to increase my circle of friends in my community. Make a plan to be social by going to places where you can meet new people and stay connected or reconnect with those you are already close to.

Consider volunteer opportunities, joining clubs related to areas of your interest, or any other activity that allows you to get to know your community neighbors to enjoy a fuller life. The most priceless experiences we can have are those we share with people we care about.

Have a plan to live an active life

Staying active can offer multiple benefits. It not only allows us a way to spend our time in a positive way but also gives us better health. Some of our activities can also add to our social life if we choose to participate in team or group activities.

Plan to have a varied active lifestyle. If all you do is golf 7 days a week it may become less enjoyable over time. If you don’t already have multiple hobbies then investigate and add new hobbies. Variety will allow you to never say you are bored in retirement.

Early Retirement Reality vs Assumptions- Staying activeStaying active doesn’t have to cost money. My wife and I go hiking on the trails near our home 5 to 7 days a week. It is amazing how much better we feel afterward. That and how much we miss it when we are not able to get out there.

Think of ways to move. A bicycle to cruise around on is both fun and healthy. There are many low or no costs ways to stay active.

Aside from physical activity make a point to keep your brain active. Make curiosity a priority and always learn new things. Plan to dedicate time in your day to research and investigate new things and any concepts that peak your interest.

Pursue your interests and passions in an encore career or start a business

I always intended to retire early and often and I took on a couple of opportunities I was interested in learning and doing. I then retired again once I felt I was done. But I am still always keeping an open mind towards any new opportunities.

Even taking on a part-time job can add to your social life, allow the flexibility you need to travel and be fun to do when you choose a retirement job. One that is aligned with your interests, skills and passions.

In Conclusion

It is easy in our enthusiasm and excitement when we retire early to overestimate or underestimate our financial and what we are retiring to readiness assumptions.

Early retirement is a wonderful event in one’s life. There is plenty of time to sit back, take a deep breath, and do some honest assessments of the best way to take advantage of our rat race freedom.

How about you? Are you ready to deal with and reconcile any Early Retirement Reality vs Assumptions gaps?

Say goodbye to 9 to 5 working life: Real life success story on early retirement

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Hello readers, today’s post has been contributed by Amy Nickson (at Working Moms Word) sharing an early retirement success story and tips she learned. Please take a look at her site and provide feedback to her posts.  She will certainly appreciate the support.

Say Goodbye to 9 to 5 Working Life

Say goodbye to 9 to 5 working lifeThere’s nothing better than having enough time to do whatever you want. But, it’s almost impossible unless you’re lucky enough to get billions of dollars from your parents or grandparents. Sometimes the 9 to 5 office life makes you crazy. But, “where there is a will there is a way”. Yes it’s tough but it’s not impossible. You may get ample time to enjoy your life in your own way once you go for “early retirement”. But, you need to be determined and work hard to make it possible.

Here is a success story of Mr. and Mrs. Armstrong who achieved early retirement at the age of 45.

How I met them

A few years back, I had no practical knowledge about personal finances. I wanted to learn more about it. Thus, I started the small financial consultancy. One day, I displayed an advertisement “Share your financial success story and win prizes” on the front door of my consultancy office. My main motive was to learn some practical lessons from real people. One month later Mr. and Mrs. Armstrong knocked my office door.

The couple apologized for being so late as they were out of town. The wonderful looking couple told me that “It’s been 2 years since we retired early. Now our age is 47 and we won financial freedom at the age of 45. We met in college, fallen in love, and then got married”.

Mr. Armstrong was a civil engineer and Mrs. Armstrong was a part-time teacher in a college. They graduated from the same university with zero student loan debt. They dated each other and fell in love. They were very compatible and soon started a live-in relationship.

Their parents helped them to complete their studies without any financial hassles. Mrs. Armstrong got a scholarship due to her good rank and worked as a part-time teacher to meet other expenses. After completion of his studies, Mr. Armstrong got a good job and started earning a good amount of money and Mrs. Armstrong continued her same job.

During that time they had to manage their rent and other costs. So they worked hard and soon bought a house. After 2 years of courtship they got married.

They had a mortgage and other monthly bills. Soon they realized frugal living is the key to saving money. They took baby steps toward extreme frugality. It helped them to pay off the mortgage earlier.

Mr. Armstrong had to travel often for official purposes and Mrs. Armstrong didn’t want him to continue the same job anymore. This is because their busy life became an obstacle between them. Mrs. Armstrong said, “There’s no fun left in our marriage. Absolutely no time for personal life!” Both of them wanted to leave their jobs to enjoy life in their own way.

Thus, they set financial independence as their goal for their life. They were in their early 30s and continued with frugal living.

They hardly visited restaurants, they prioritized to save 75% of their income each month. They said “We optimized each expense so not to break our budget”. Their pretty good income and saving helped to pay off the mortgage and they started saving more money.

They shared more secrets for winning an early retirement at the age of 45

The couple said, “we set our goals first, we analyzed every expense and allocated money for them” and “We followed our monthly budget”. They agreed that maintaining a frugal lifestyle is tough, but it helps to save more money every time. Here are some tips to minimize your working life and maximize your golden age.

Tips to win an early retirement

The couple said you should start soon for winning an early retirement. Because if you start planning for retirement at the age of 40 then it’s already late.

  1. Make a proper plan

At first, write down your plan to build your financial security for post-retirement life. Remember, you need to take proper action to make your early retirement possible. It won’t happen magically. So make a financial goal and set the age when you want to retire. This way you can focus on your goal and make each and every decision purposefully.

  1. Prepare a budget

Check your bank statements on a regular basis and put all expenses into a category, like debt repayment, travel expenses, food and household so on. Calculate every month’s average expenditure per category to figure out how you are presently spending your money. Thus, you can track your monthly expenses. After this, deduct the average monthly expenses from your net monthly income. Now look at the amount you have saved and look for other ways in which you might increase that amount.

  1.  Reduce unnecessary expenses

Mr. Armstrong said, people with high paid jobs are still working at their age of 50 because they all are reckless spenders. So, if you want to achieve financial security early, then you should focus on saving, no matter how much is your annual income. So, try to uncover those unnecessary expenditures. You may be surprised to look at the amount you’re spending by going to the movies every week or how frequently you are eating a lavish dinner in an expensive restaurant. There’s no point in living in a bigger house than you need. Try to buy or rent a modest apartment, according to the size of your family. It would be wise on your part to reduce these unnecessary expenses and save for your forthcoming retirement days.

The couple marked some mistakes that can delay your retirement planning

You need to be very clear about your dreams. If you’re planning for early retirement without knowing all the advantages and disadvantages, then it will be your biggest mistake. It is very important to research thoroughly before making any decisions.

  1. Not re-allocating your excess finances

If you have some extra money, then use the money to get out of debt or other payments (if any). You can also use the amount that you save from your net worth to pay your mortgage. Remember, the more you reduce your expenditures, the quicker you’ll be able to pay off your bills. If your debts are cleared, you’ll be able to save more money for your retirement days.

  1. Not living in the right place

Mrs. Armstrong suggested that, if you’re living in a big city, then it’s quite normal that even a cup of coffee is much costlier than a smaller town. You should think about relocation if you want to save more money for the future. It’s not possible to maintain a frugal life in an expensive place even if you want. So, it will be a good decision to relocate to a smaller town to stretch your retirement savings.

  1. Not consulting with a financial planner

A consultant always has some better insight than you. So, if you’re planning for early retirement, then it is advisable to sit with a financial planner to judge if the plan is suitable for you. They might have some tricks that can help you to achieve your dream faster.

Conclusion

The whole discussion was for 3 hours. They won some goodies and I won some real life financial lessons. The couple travels a lot. They rent a portion of their house to earn money. They grow their own veggies in their yard as well. Lastly, they told me “make sure you’re saving a good amount when you’re young. Making wise investment decisions is very important to grow the money as well. Because without adequate financial support, financial independence is not possible”.

Extending my thanks to Amy, this is the Leisure Freak site’s first contributed post.

Author bio- Amy Nickson started the Working Moms Word site  in loving memory of her mom – sharing thoughts and opinion to help single parents, child, working moms.