Early-retirement wannabe

JoeEngland

I was being a bit facetious asking about the difference between a job and career. A career is perphaps a state of mind in terms of looking to progress in terms of role and salary, but it's still just a job at the end of the day.

agent69

As a recent retiree I've noticed my first negative point:


The approach of the bank holiday weekend doesn't have the same attraction as when I was working.

JoeEngland

agent69 wrote: »

As a recent retiree I've noticed my first negative point:


The approach of the bank holiday weekend doesn't have the same attraction as when I was working.

Yes, but you don't have the downside of going back to work on Tuesday!

gallygirl

agent69 wrote: »

As a recent retiree I've noticed my first negative point:


The approach of the bank holiday weekend doesn't have the same attraction as when I was working.

No weekends off either :eek:.
But also no Sunday night dread :T.

Marine_life

A career for me is where there is a clear hierarchy of roles with accompanying responsibilities and reward.

Of course its just a job but from a financial planning perspective there should be a reasonable expectation that income will increase (and by significantly more than inflation). That means you might push yourself to take on a higher mortgage today because you know it will be relatively easier to repay going forward. Conversely there's little point murdering yourself to save (and being miserable) in the early stages of a career because your future saving will have much more impact (on your retirement pot). I had almost zero savings at age 35.

That's why (probably) the best route to early retirement is not to fret about buying a daily frothy coffee but try to avoid lifestyle inflation i.e. any salary increases gained through promotions should be diverted into additional savings.

Remembering early retirement is about in order or importance:

1. Maximize earnings
2. Invest wisely.
3. Spend frugally.

jamesd

I'm now retired.

Not exactly voluntarily from the leaving the job end but I won't be looking for a new job, so retired it is.

Courtesy of around a decade with a 60%+ savings ratio, starting retired life in my mid 50s doesn't present me with substantial financial worries: more "how much should I spend" than "will I have enough to live on".

jamesd

Marine_life wrote: »

I had almost zero savings at age 35.

I was around zero in 2005, courtesy of exhausting my savings doing very worthwhile volunteer work. A 60%+ savings ratio with a modestly frugal lifestyle can produce good results.

Marine_life wrote: »

That's why (probably) the best route to early retirement is not to fret about buying a daily frothy coffee but try to avoid lifestyle inflation i.e. any salary increases gained through promotions should be diverted into additional savings.

While I wouldn't do the coffee, I agree about lifestyle inflation. I was used to means tested benefits or quite low pay and that set me up well when I earned more because I never developed a frothy coffee or expensive home lifestyle.

Marine_life wrote: »

Remembering early retirement is about in order or importance:

1. Maximize earnings
2. Invest wisely.
3. Spend frugally.

Perhaps interesting that I'd have those in the reverse order. You need 2 and some at least relative degree of 3 whether you do 1 wholeheartedly or not.

Triumph13

I'd agree with James on reversing ML's order. Most people with large salaries seem to just use them to fund lavish lifestyles making financial independence further away not closer. There are whole industries out there dedicated to helping this happen.

As regards career vs job, I would say a large part of it is that many people tend to define themselves, and derive a good portion of their self worth, from their 'career'. A job is something that pays the bills whilst you get on with life.

Anonymous101

Marine_life wrote: »

Conversely there's little point murdering yourself to save (and being miserable) in the early stages of a career because your future saving will have much more impact (on your retirement pot).

I understand your point. Money is worth more to you earlier on in your career. However with the effects of compound interest that money is also worth much more invested earlier than it is later.


I agree that you shouldn't be forcing misery on yourself for the sake of saving but if you can manage a decent savings rate early then you're setting yourself up very well for later in life.

Triumph13 wrote: »

I'd agree with James on reversing ML's order. Most people with large salaries seem to just use them to fund lavish lifestyles making financial independence further away not closer. There are whole industries out there dedicated to helping this happen.

Me too. I think that earning a large salary alone will no get you to F.I. or have a decent retirement pot relative to expenditure. Being relatively frugal and staying that way is the best way to avoid lifestyle inflation which as you progress through your career should open up a larger and larger gap between income and expenditure.


This is the key to financial independence and early retirement for me. Find a lifestyle (read expenditure) that's within your means and you're happy enough with early ish in life then stick with that while you try to increase your earnings therefore savings rate.

k6chris

Anonymous101 wrote: »

This is the key to financial independence and early retirement for me. Find a lifestyle (read expenditure) that's within your means and you're happy enough with early ish in life then stick with that while you try to increase your earnings therefore savings rate.

I think this is something that requires a few iterations and some real effort. Spending less is simple but it's not easy. Cars were (are??) the big thing for me, where a lot of money was dribbling away...still work in progress!