Early retirement feels a lot like being an entrepreneur—both are pretty awesome! Becoming your own boss is a dream for many, but it’s not easy to take that leap, whether due to a lack of ideas, finances, or confidence. However, I discovered that you don’t need to dive in headfirst. Instead, you can start small, even on a budget, just like I did with my blog, Financial Samurai.
Before I left my banking job at 34, I had already been building Financial Samurai on the side. I didn’t jump ship until I had a decent savings buffer and a severance package that could cover my living expenses for a good few years. This financial safety net, combined with my passion for the blog, gave me the confidence to finally make the switch.
Running my own business didn’t match my banking salary at first—I earned 80% less but felt 50% happier. The direct correlation between effort and reward was fulfilling. In the corporate world, you might work your hardest and only see a minimal raise, which can be quite disheartening. As your own boss, the sky’s the limit; your hard work directly benefits you, not just a company’s management team.
Starting a business today is more accessible than ever. You don’t need to invest in a physical store or large amounts of inventory. You can set up an online business with minimal startup costs and run it from anywhere.
However, early retirement and entrepreneurship both have their challenges. The biggest hurdle for many early retirees isn’t money but boredom. With too much free time and not enough to do, it’s easy to feel unfulfilled. That’s why combining early retirement with running a small business or blog can be the perfect solution, keeping you engaged and mentally active.
You also don’t need to form an LLC or a corporation right away. You can start as a sole proprietor using just your social security number, making the administrative side of things much simpler. If your business grows and the risks increase, then you can consider more formal business structures for better protection and tax benefits.
In conclusion, whether you’re dreaming of early retirement or aiming to be your own boss, the key is finding joy and fulfillment in what you do. If you manage that, the financial aspects will follow. And remember, you don’t have to go it alone—starting small and gradually building your venture can provide a taste of freedom without full-scale commitment.
