The so-called “FIRE” movement (FIRE stands for financial independence, retire early) has garnered so much attention lately, even those who anticipate retiring in their sixties are wondering if they should make a sacrifice or two to exit their careers or businesses a bit earlier. A poll, commissioned by personal finance website FinanceBuzz, highlights what some pre-retirees would be willing to give up, so they could do just that – at least, in theory.
Thirty-six percent of the poll respondents indicated that they would cut household spending to the bone and buy only the most-essential consumer goods for as long as two years if it would hasten their retirement. Twelve percent said that they would refrain from starting a family if being child free would help them retire earlier, and 11% would avoid having a pet. Six percent said that they would live without a vehicle if that would contribute to their ability to retire sooner. Are measures like these really necessary? Perhaps not, for there are other ways to potentially arrange an earlier entry into retirement. A part-time business could be built from a hobby, pastime, or passion, and the income derived from such a business could possibly help your retirement savings grow. Also, living below your means during your working years may free up more cash to direct into your retirement savings, and that may help you reach your savings goals earlier in life.1
Mike Moffitt may be reached at ph# 641-782-5577 or email: firstname.lastname@example.org
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1 – fool.com/retirement/2019/07/22/to-retire-early-what-would-you-give-up.aspx [7/22/19]
2 – news.aamc.org/press-releases/article/2019-workforce-projections-update/ [4/23/19]