I’ve been thinking a lot about my need for extremely early retirement. After all, I’m easily bored so why would I want to rush into retirement where, it would seem, boredom would abound.
What I’ve come to realize is that my real goal is for Early Financial Independence (EFI).
For many people like myself, money becomes an obsession. Not because I love to spend it (I don’t!), but because I want it to be a variable that I no longer care about. I want to live a life where it’s irrelevant, and even though I spend very little of it, I want it to be such a small part of my overall capital that it is completely eliminated from the equation.
For this reason, I’ve really been focusing on maximizing my investment income and minimizing my expenses. Generally, I see the life of extreme early retirement and extreme early financial independence as a 3-part personal analysis:
- Minimizing expenses
- Maximizing investment returns
- Mental acceptance
The funny thing is, # 3 is the hard part. I’ve found that it’s easy to reduce my expenses from $7500/month to $3000/month while maintaining the same life satisfaction. I’ve moved my stocks from boring captital stocks to well-producing income-generating dividend funds. That covers #1 and #2. But as I get close to the point that the two cross (that my investments, alone, pay for my life expenses) it is hardest to mentally accept that fact.
The protestant work ethic to work hard and make money if fully ingrained in our heads! But it can be beaten, and I’m beating it down today. I see the light at the end of the tunnel where I am not a participant in environmentally detrimental industrial growth, I’m not a part of unnecessary materialism, and I’m not feeding capital greed. Instead, I’m making room for jobs for others that need them while investing in jobs for others.
Financial Independence at a young age can be a beautiful thing, and I’m beginning to see that.