Why Early Retirement Is So Important To Me

why early retirement is importantIf you have ever thought about retirement, I am sure the question of whether you can retire early has accompanied it. With the financial difficulties that this economies brings, many people are forced to work longer than generations before them. While people are forced to postpone retirement, I am planning my early retirement. In fact, I have a crazy goal of retiring by the age of 27. I am 24 right now, so that only gives me about 2.5 years to establish financial security. I want to explain not only how I plan on achieving this, but why it is so important to me.

How I Plan to Retire Early

I know what you are thinking: “If people take 40 years to save for their retirement, how is it possible that a person such as yourself could do it in such a short period?” Before you assume that I have a high paying job or wealthy family, I can assure you that neither of those are true. Instead, I plan on retiring early by shifting the goal of retirement.

Many people in planning for their retirement, save a percentage of their income throughout their long careers. Between the money put away and the compound interest, over the course of their life they are able to save up enough money to live off of during their retirement years. As a result, what happens is that people who are motivated to retire a few years early, make sacrifices in order to get out of their job. This often results in the connected idea that you have to wait until you are retired to do what you really desire to do.

When I started thinking about my retirement, I realized that I didn’t want to wait that long and I didn’t want to have to sacrifice too much in order to retire early. For example, I knew I didn’t want to live on the street just so that I didn’t have to work. Instead of trying to build up a lump sum to live off of, I hope to go about it a different way. I plan on creating passive income streams that will generate enough income to replace my day job. If I can generate enough income from my investments, I won’t be forced to work to earn a regular salary. I am starting by creating an online portfolio of blogs that are earning money. Once I have enough money saved, I will invest this money into real estate for a longer term investment. By focusing on cash flow instead of a lump sum, I am able to retire much earlier.

I recognize that maintaining these efforts will take some time, but I should be able to manage it in 3 days a week. Because I don’t see retirement as sitting around doing nothing, I am perfectly okay with this. Plus, I would rather work 3 days a week sustaining my income than stay in the rat race, working 40-50 hours per week.

Why I Want to Retire Early

If there is anything that I have now become passionate about, it is about my goal to retire early. My early retirement plan isn’t just about making lots of money and sitting around. Instead, it is about so much more. My plan to quit my day job and sustain my income from online efforts and real estate is ultimately about giving myself the freedom to make a significant change.

I don’t just want to be as wealthy as possible or have all of the newest things. I don’t see fulfillment in these things. Instead, I see my goal as a way to give myself two more days each week to volunteer for worthy causes. There is a lot of change that I would like to see in this world and if I can contribute to changing for the good, it is worth every effort to make this happen.

Too many people are stuck in 9-to-5 jobs and can’t be a part of anything meaningful because of their life commitments. I have been in college and now graduate school for the past 7 years and I know the feeling of constantly being busy all too well. Because I don’t want to the person who can’t help with anything, I am working towards financial freedom in order to free up my time while I am still young.


What would motivate you enough to retire early?

(This was a guest post from Corey at Passive Income to Retire and 20’s Finances. He writes to provide important information for young people while generating an income that will allow him to retire by the age of 27.)

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Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
. Happy investing :)

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing :)

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  1. I agree, early retirement isn’t so I can just lay around all day and be done with work. Early retirement is all about freeing yourself up to enjoy life and all aspects of life.

  2. I was motivated to achieve financial freedom at the ripe old age of 38 years old. I started my plan at 31 years old. I did it through rental property (before internet). Good luck.

  3. Hi Jon, can you provide some numbers on how you will get there?


    • Jon the Saver says:

      Sure thing Sam. Although this article wasn’t written by me I’d love to share with you some of MY goals. First off, I want to be financially independent by the time I’m 30. I’ll get there by managing multiple PF blogs and hopefully own 3-5 rental condos. After that who knows!

    • Sam, I hope to have enough revenue to replace my day job by the end of 2012 (consistent income). Then, I plan to use that income toward real estate investments that will generate immediate cash flow (and will grow with time). Between those two efforts, my plan is to grow both over time.

      • Can you give us an idea of what your day job income? Remember, you must compare your OPERATING INCOME (Revenue minus all costs) to your day job income to make it apples to apples.

        Don’t confuse revenue with profits!

        Have you not found a job you like?

  4. “give myself two more days each week to volunteer for worthy causes” I like this a lot. Good luck! 2.5 years is so short. I don’t want to sit around and hang out either, that’s the way to an early grave. I’ll probably work part time on something I like.

    • Jon the Saver says:

      Yah, see that’s the thing, I’m not sure I will sit around either, I always have to be doing something new and exciting!

    • Thanks Joe! It really sounds like a great deal. Right now I feel like I am too busy to offer my time to anything (with grad school and working full time). I agree -those who just sit around seem to die a lot sooner; everything goes down hill if you live life this way. (IMO)

  5. MoneySmartGuides says:

    Your idea of retirement is the same as mine. When I “retire” I’m not going to sit around all day. Retiring to me means I don’t have to do the 9-5 everyday. I can do the things I want to do and enjoy everyday.

    And I too am about to jump into the world of rental income. The funny thing is, all I hear are horror stories from people who wanted to do it, but were too scared. I’ll take my chances. I don’t want to be scared off by other people’s stories.

  6. Hi Jon,

    I’m loving your goals, reasons and motivation for retiring early. I love your ideas. I thought about buying real estate for rental income purposes. I would want to do it in cash obviously. You didn’t mention if you were thinking in-cash also, but I think you are.

    I too want to retire early. Not so I can sit around and do nothing, but so I can do what I’m passionate about and do things that help others and myself. Right now, my only goal is to pile up a bunch of cash so I can make decisions from that point. Perhaps I need to think more about the reasons for what I want to do with my savings. I like you’re long term thinking. Thanks for the insight.


  7. You and I seem to have very similar goals. I too am looking to create passive income streams. I don’t necessarily want to stop working. I just want to be financially secure enough to decide whether or not I can. Good luck!

  8. only 12 years till I retire. I have a paid in full cabin in the woods waiting for me. I will probably work at the local grocery store though just to keep social. Other then that I am getting two horses, two dogs and am reading every book I can get my hands on while I fish;-)

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