The whole idea about this blog found its origin in the above question. Perhaps, I find it apt that my answer to this question be the first ever post on my blog. So why retire early?
First of all, let me be clear about what I mean by retirement. I would use the terms “retire”, “retirement”, “financial independence”, “FIRE”, “early retirement” interchangeably through this blog. My idea of retirement is not the conventional sitting on a rocking chair while reading the newspaper and sipping tea. It is more like the idea of achieving financial independence and not having to work for money. Read more about it in my post on early retirement is not the same as “not working”.
But why do I want to retire early?
People often ask me, “Dude, why do you want to retire early?”. And my response is, “Because, I want to do whatever I want without thinking about money”.
However, the more I think about this question and the world we live in today, the more I start believing that retiring early or gaining financial independence should be right at top of the must do things our parents keep on telling us throughout our life, like “study now enjoy later”, “go to a great college”, “get married”, “have kids” etc.
I am thankful to my parents who planted the seeds of ‘INVESTING’ (not saving) early on in my life. However, more on that in later posts, let’s get back to the reasons you should plan to retire early.
Reason 1: Things are changing much faster now
I write this post in 2019, and the world that we live in now is far different from the world even 15 years ago. The pace of change that has been witnessed in the past two decades has surpassed the pace of change over a century by leaps and bounds. Here is a small graphic to illustrate the change from Citi Digital and Sensor Tower:
With this rapid “pace of change”, what you are doing today would most likely be irrelevant in 5-7 years. Keeping this in mind how realistic do you think would it be for a 45 year old you to change, learn, unlearn and compete with a 25 year old you?
Reason 2: To do whatever you want to, without worrying about making money
How many of us dream to start our own venture, take up theatre, write that book that we have procrastinated forever, spend more time with family or just do whatever we want to on a particular day without any plan or schedule that we have to stick to? My guess is, almost everyone.
But all of the above get pushed back because the reality is that we have to earn to sustain our lifestyle.
Imagine if you had enough money yielding you enough interest to sustain the lifestyle you have for your lifetime.
Reason 3: Your output and focus is much better once you stop worrying about money
There are of course people who say, “Hey, I love my job. I don’t want to retire ever!!!”. As I mentioned above, when I say retirement what I really mean is not having to work for money.
Even if you love your job, ask yourself if you would be doing things differently if you don’t have to depend on that paycheck? Would your performance and focus be better if all you cared about was the work you are doing and not about the money it brings?
After listening to the successful founders of big companies say things like, “Follow your dream”, “Do what you love”, “Don’t run after money” and so on, one thing is clear: Output of our work is much better when we do what we love without worrying about money.