Aim to retire at a specific age, not a specific financial milestone. Time is limited; money is not. You can always earn more money, but you can’t get more time.
Ever since I moved to San Francisco in 2001, I’ve lived with the mindset that I’d like to enjoy life fully up to the age of 60. While the idea of planning for an early departure might seem a bit grim, it has actually motivated me to build wealth more quickly. This urgency comes from wanting to maximize my enjoyment of life, even if it means pushing hard for a few years, like working long hours or saving a significant portion of my income.
Choosing retirement based on age rather than financial goals is a different approach than what you often hear. While many financial advisors focus on hitting a specific net worth before retiring, I encourage you to consider a different perspective. For instance, having a target net worth of around $2 million by 60 is a common goal. But rather than fixating on that number, focus more on when you want to start enjoying a work-free life.
This approach is more about preparing for life’s uncertainties. The harsh reality is, we don’t know how long we will live. Despite advancements in healthcare and lifestyle, life is unpredictable. Imagine working hard until 60 only to discover you have limited time left. Such scenarios are reminders of the importance of enjoying the journey, not just the destination.
From my personal experience and observations, those who retire by a specific age often avoid common regrets later in life. Many people regret working too much, losing touch with friends, or not allowing themselves to be happier. By aiming to retire earlier, you give yourself a chance to live more true to your desires.
Changing your mindset to prioritize time over money can profoundly affect your quality of life. It encourages you to value your relationships and experiences more than your financial achievements. This perspective also prompts you to take more risks and focus on what truly makes you happy, rather than just accumulating wealth.
Deciding on an early retirement age might sound daunting, but it can lead to a more fulfilling and appreciative way of living. Whether you choose to retire by 40, 50, or another age, the goal is to ensure you have the freedom to enjoy your later years without financial worry.
In conclusion, consider setting an age goal for retirement rather than a financial one. This shift in perspective can lead to a richer, more rewarding life, allowing you to make the most of your time with family, friends, and on your personal passions. After all, life’s too short to spend all of it working. Remember, it’s not just about surviving financially; it’s about thriving in your life’s later chapters.
