Saturday, September 22, 2007

Retiring Before Fifty - Stories of People Who Did It

Retired by 50: Real Life Stories is an article by Liz Pulliam Weston on I like "we've done it" articles because it shows the trials and tribulations people who actually have followed a personal finance plan and achieved their goals.

The article describes three couples who retired before their fifties. It is interesting that all these people appeared to be middle class, indicating that retiring early is well within many people's reach. Here are some the key things they did:

Make retiring early one's top financial priority. All their financial decisions were made with respect to their goal of retiring early.

Significantly reduce expenses. In all three cases, the couples took a good look at their expense and then cut them. They eliminated cable TV, cut food expenses, changed to memorable and inexpensive vacations, and drove used cars. In essence, the stopped trying the "keep up with the Joneses" and tried to only buy what they needed.

Save ruthlessly. Two of the couples saved as much as 50% of their gross salary toward their goal of a nest egg that would provide necessary income in retirement.

Work for money or love AND money. The three couples realized money was a major factor for success. So they either took jobs for money or found a job they loved which paid enough money. No one took a job they loved for not enough money.

Acquire assets to sell later. All three couples acquired real estate or small businesses which were later were sold to fund their early retirement.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial or retirement advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC


Anonymous said...

Most bums retire well before fifty. Are any of their stories included?

Super Saver said...

@ Anonymous,

Hmmm... Your definition of retirement is interesting, and probably, not very comfortable.