Some recent home organizing brought me to a bit of an archaeological find: a snapshot of my finances almost exactly 10 years ago, before Mark and I got married. I'll bet they're not what you expect, but what's more, they show why it's so important not to get discouraged if your financial progress feels slow in the beginning, or even for years!
You know all the math. You're saving at a high rate. You're optimizing your spending and avoiding investments with high fees. But do you REALLY have what it takes to achieve early retirement? Come find out.
While the online financial independence community is fantastic for inspiration and support, having a real life circle of friends who are like-minded on money comes with enormous benefits. Let's talk about what those benefits are, and how you can build or strengthen a frugal friend group in real life.
"Simple living" is a term that I resisted for a long time because it felt so prescriptive and unachievable. Maybe it's all Instagram's fault, but it felt like there was a way living simply was supposed to look, and that wasn't for us. But I finally saw that it's up to each of us to define what simple living feels like, and that there's tremendous value in doing so. (Plus, enter to win Mrs. Frugalwoods' new book!)
Aligning your spending with your values with one of the first bits of advice many of us here when we get on the path to financial independence. But that advice usually goes on to talk about value -- specifically what you get most value from -- and not really about values at all. This is my case for why it serves you better to think about both what you value and your personal values when it comes to your spending and economic power.
Maybe it's because I was confined to the couch all last week with a migraine, and maybe it was because there was recently a fresh wave of "Early retirement will kill you!" headlines, but I decided to really dig into this question of whether early retirement could actually be bad for us. Here's what I found.
Our lives lately have looked slightly less than, er, adult. Some days we wonder why there are no grownups here to tell us what to do, instead just leaving us alone to do as we please with no structure whatsoever. It's marvelous, of course, or at least marvelous for now, but we're certainly wondering: At some point are we actually going to adapt to this new unstructured life?
The biggest non-financial question we've been getting lately, now that folks know we've retired, is "Aren't you scared?!" And you might assume that people who've made the big leap and given up the big paychecks would say, "Nope!" But that's not true. We are scared. Just as anyone doing something big and at least a little bit risky should be. But we didn't let that fear hold us back, and that's what actually matters.
Do the roller coastering markets have you concerned about the your early retirement plan? Sequence risk is by far the biggest risk early retirees face, and that risk can come from market crashes, long-term mediocre returns and even rising health care costs. Fortunately, though, we can all put ourselves in a good position to head off that risk, without lengthening the timeline to early retirement, by making some smart choices with asset allocation and behavior.
We've had a strange and completely unexpected realization already, though we're still new at this early retirement thing. Time isn't what we thought -- days, specifically, aren't what we thought. Let's talk all about it, including how the zombie apocalypse is suddenly relevant to our lives.