There aren’t many people in my life that know about my goal to retire by 45. While I love to talk about money and personal finance, only a few people know I’m spending most of my money trying to reach financial freedom (the point at which our investments produce enough regular income to cover our expenses).
That said, when I get brave enough to share, one of the common reactions is incredulity. Some suspect I have a major trust fund (I don’t), or that Mr. Financier and I have inherited wealth (we haven’t); others are curious about the math behind financial independence; and others say, “Retire by 45?! Why would you want to retire so early - what will you DO with yourself!?”
The answer to that question is exactly why I’m so focused on financial freedom, so I’d like to share my perspective. I also recognize how lucky I am that my circumstances and hard work have put me in a position to consider leaving the workforce at a relatively early age. Here are three reasons why I’m so focused on this goal.
#1: I Need More Time for Hobbies
There’s a lot that I enjoy...reading, traveling, hiking, bicycling, volunteering, mountaineering, kayaking, discussing personal finance, bird watching, running, weightlifting, yoga, cooking, learning and taking classes, enjoying a nice glass of wine...to name a few. With my current career, I am left with only two precious days each week - Saturday and Sunday - to focus on my hobbies. Realistically, those days are currently also filled with chores that get neglected during the workweek.
I get more enjoyment from a day that allows me to focus on the things that bring me joy. A day that starts with a morning yoga class, a post-class coffee with local volunteers to strategize about an upcoming campaign, followed by a hike in the woods and picnic lunch with my partner, ending with starting the first several chapters of a huge novel before a delicious home cooked dinner and glass of wine - that’s a dream.
If I’m lucky, I get 4 days like that a month. If I’m realistic, it’s only 1 - and that’s depressing, to me. The idea that I might be able to escape the daily grind and have more time to spend on the things I enjoy is incredibly motivating, empowering, and liberating.
#2: I’m Sick of Working
I’ve been earning a paycheck in some way, shape, or form since I was 13. Before that, I babysat for neighborhood kids (I even had my own business cards and completed the American Red Cross Babysitting & Child Care Training) and did clerical work or physical labor as needed for my dad’s small business. When I was able to take a job outside the neighborhood at 13, I began earning paychecks. I’ve worked at a daycare center, served as a restaurant hostess, was a cashier at a sporting goods store, interned at a financial planner’s office, served as a lifeguard, and interned at a law firm...all before turning 21.
Since graduating from college, I have worked in consulting. There’s plenty to love about my career; the client challenges are fascinating, I work with smart colleagues, and I get to travel extensively. As most businesspeople know, traveling for work is both a pleasure and a grind; on the whole, I realize that I’m lucky to explore the world as part of my work. However, the massive time commitment and consistent stamina required of at a full-time job in management consulting is something I’d gladly leave behind. At the end of the day - it’s work. It's work I have to do because I need money to live.
#3: I Finally Realized That Experiences > Things
I think of 2011 as the year that the scales fell from my eyes around the value of material goods. I won’t tell you that I have sworn off beautiful things - I still salivate over a gorgeous pair of Louboutins. But, during the financial crisis, I was terrified I’d lose my retirement savings, job, and home. When the economy began to improve, I bounced back in a very financially counterproductive way. I rewarded myself with a lot of things. And those things weren’t necessarily making me feel happier or more secure. I’d often open up my credit card bills and feel nauseous about how much I spent on “stuff.”
That year, I started taking smaller steps to get my financial house in order. I stopped planning shopping afternoons with friends and instead suggested museums or picnic lunches. I canceled my recurring housekeeping service and began cleaning my own home. Mr. Financier and I started reviewing our budgets even more regularly and critically to look for areas where we were leaking money. We re-routed “fun money” that we had previously spent mindlessly towards investments. I got more serious about my career, knowing that if I grew my income, I’d have more to invest. Simultaneously I started exploring the FIRE movement and was very inspired by others that had saved enough to stop full-time work in their 50s, 40s, or earlier!
I began to internalize that, for me, life experiences will always deliver more value than material goods. And I’ve always been a fan of aligning money with your personal values. This series of realizations helped me put my money to work for my future, instead of on things I’d enjoy in the present.
As you can see by these three reasons, the goal of achieving financial freedom is so important to me because time is an incredibly precious asset and given the choice (which I’m grateful to have), I prefer free up time for experiences outside of work. I’m curious if you’ve contemplated financial freedom - either earlier in your 30s or 40s or later in life. If so, what drove you to explore the idea? Let me know your thoughts.
xoxo, Ms. Financier