Everyone has their own version of the perfect retirement. Some folks are fine living in remote places where life is simpler and costs less. Others might choose to live in tiny apartments or even trailers to stretch their pennies further. Some people don’t mind harsh weather if it means cheaper living costs.
But what if you want more from life? What if you want your children to experience a diverse culture, appreciate the arts, and savor various cuisines? Or what if you prefer driving a safe, modern car over riding a bike? These are common concerns I’ve heard from many people over the years.
Financial Samurai isn’t just another blog about pinching pennies so you can retire in the woods. It’s pretty straightforward: don’t spend more than you earn. But what I find truly thrilling is finding ways to make your money grow through investments in real estate, stocks, peer-to-peer lending, and entrepreneurship. It’s more fulfilling to increase your income rather than constantly cutting back your spending. When you do, the world opens up with endless possibilities!
My Ideal Retirement Looks Like This:
1. Diverse Living: Having lived in six different countries during my childhood, diversity is crucial to me. I thrive in vibrant, cosmopolitan cities like San Francisco, New York, or London, where life is rich with different foods, cultures, and entertainment. These cities attract fascinating people and offer a dynamic lifestyle, though they come with a high cost of living.
2. Adequate Income: In places like San Francisco, living comfortably is costly. Earning around $200,000 yearly allows for a decent lifestyle, covering private schooling, travel, dining out, and housing without the need to save further for retirement.
3. Convenient Travel: I love exploring new places but dislike the hassles of travel. I prefer direct flights and minimal layovers to reduce stress and inefficiency. Living near major travel hubs like NYC, Denver, or San Francisco makes this easier.
4. Quality Education: Access to top-notch education is a freedom tool. Cities like Boston and San Francisco are educational powerhouses, providing great opportunities and attracting bright minds.
5. Pleasant Climate: I prefer living where the weather is enjoyable year-round. San Francisco’s moderate temperatures allow me to enjoy both the city and nearby natural attractions like Lake Tahoe or Napa Valley.
Ultimately, living well means refusing to compromise on quality of life. Life’s too short not to live exactly where and how you want.
So, What If You Don’t Want to Skimp on Life in Retirement?
– Keep Working: If you can’t afford the lifestyle you want in retirement yet, maybe retiring isn’t the best choice. There’s nothing wrong with working if it means living better.
– Save Aggressively: During the last few years of my career, I saved over 70% of my income, understanding that each saved dollar was doubling my living expenses down the road.
– Consider Relocating Broadly: Don’t just think about moving to the cheapest place; consider vibrant, affordable international locations like Thailand or Spain, where you can enjoy a high quality of life without the high costs.
– Monetize Your Hobbies: If you love doing something, find a way to make money from it without turning it into a chore. For me, blogging about topics I’m passionate about not only fulfills me but also supplements my income.
– Plan Your Income Sources: Know what your income streams will be in retirement. For me, aiming for $200,000 by 2015 was a clear goal, supported by tracking and managing my finances meticulously.
– Consider Part-Time Work: Even a few hours a week at a job you enjoy can provide extra income and social interaction. I wouldn’t mind working part-time at a place connected to my interests, like a BMW dealership or a Ben & Jerry’s.
Our Retirement is Shaped by Our Upbringing
Ultimately, striving for a more comfortable retirement through higher income is far more appealing than merely cutting corners to make ends meet. While it’s easy to cut expenses, earning more opens up possibilities that strict budgeting never will.
Having diverse income sources — a day job, investments, and personal passions that can make money — sets you up not just to avoid “eating dog food” in retirement, but to dine well on whatever you fancy. So why settle for less when you can build the life you truly want?
