Early Retirement Planning…a common error is people think or are led to believe they are going to continue spending like they are while working.
If it means the difference between staying retired and having to go back to work, you will find a way to stay retired and spend much less than when you worked.
Why am I so sure of this…it is because of the money you waste keeping up with the neighbors and co-workers. Think about it, at work how much money you spend on clothes and cars to keep up appearances. You need to recognize this for the best early retirement planning for you.
The scenario goes like this…well Sally and I both make the same money. She is shopping at Macy’s. I’ll show her, I’ll get that dress I’ve wanted at Nordstrom’s. Has a nerve been hit? I did the same thing… now I did not wear dresses just substitute a tailored suit and Bill for Sally. Whew…
If this sound familiar…it will stop when you retire.
Your old clothes fit just fine…besides you need money for fuel to take the RV to Montana…now that’s the way to think and prioritize for early retirement planning
Think of the times you have bought new cars that you didn’t really need. And I am not saying I haven’t done the same thing….but I learned and our current car is 11 years old with 153,000 miles on the odometer. Runs and looks good thank you.
Clothes and cars are the tip of the iceberg. If you are at rung 4 of the corporate ladder a country club membership, a certain type of country club, may be expected of you. Folks, I have not had my shoes shined in 14 years, open toed sandals don’t need polish. You can do this too.
It is not in the financial planner’s playbook to even think about you spending less money, a lot less money, when you retire. It is so easy to say, “well this is what you are doing now and you won’t be happy spending less.”
Really? Compared to commuting and working with people you may not care for is all the motivation you will need to retire early.
You will spend a lot less in retirement if you are motivated to retire. Early retirement planning rarely takes this fact into account. Don’t let it happen to you. Enjoy.
Gary Pierce is the webmaster of http://www.frugal-retirement-living.com he retired early at 49, he is still retired at 63. He has experience in lifestyles that are both fulfilling and frugal. It is 2009 and many are wondering if they can ever retire. Don’t give up until you check out this website. Enjoy.
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