Tuesday, August 22, 2017

My recipe for early retirement (at age 46): part one




One of my regular and lovely readers, D, asked for my ‘recipe for early retirement’.  I’m always happy to share, so I had a think about it and here’s what I came up with.

I met my husband until I was 32 and he was 31.  Right from the start we lived a thrifty life together, and for me that is the key to being able to do whatever you want in life, including retiring early.  Firstly we were thrifty from necessity – when we started our business we didn’t pay ourselves much at all, but once we started earning more we saw that we could get a house deposit together if we continued on that way instead of having a more expensive lifestyle.  Once we’d bought a house, we realised we could pay it off early if we continued on our thrifty path, and so it went on.

We did everything to make the most of our income whilst we saved – cooked our own meals, hardly went out, enjoyed our own entertainment at home with carpet picnics, box-sets and making our home a comfortable place to be (being at home instead of going out all the time was not a hardship because we are both happy homebodies).  We wore our clothes out (as in ‘worn out’), made do and mended and basically lived an old-fashioned non-spending way of life.

It wasn’t sucky though; we loved it, because we had our eyes on the prize.  Firstly in buying a house, then in paying it off.  After that we wanted to live our dream lifestyle, and no debt or dumb spending is worth giving that up.

Basically we are thrifty, minimalist and happy with the simple things.  I used to love reading inspiration on all these topics through books and blogs to keep me motivated, but I don’t need that now.  Living the life is even better than reading about it.

My book Financially Chic goes into everything we did to get to the point where we are today – which is living our dream life in a beautiful home in the countryside with no financial stress.  I would not be here right now if we still had a big ‘normal’ mortgage to pay off.

So if there is a recipe for early retirement, it goes like this:

One. Work out what your dream life looks like

As yourself how you’d love to live if money was no object.  Where would you live?  What would your lifestyle look like?

To get your other half on board, be the dreamer for both of you – say to them ‘Imagine if…’.  Get them excited too, that you could both live your dream life.  Then, have conversations with them often about your shared vision.

For us, it started at the beginning of 2015.  Our shop lease was up for renewal at the end of the following year which was almost two years away at that time.  We started asking ourselves if we wanted to continue down the same path by renewing our lease.

We’d already had twelve years working together 7-days-a-week in retail and we decided we wanted to do something different.  We also wanted to live in a less populated, slower moving area.  From this we made the decision to sell our business and move to the provincial area where I grew up.

Two. Put your money towards your dream rather than frittering it on stuff

Really, save everything in any way you can and put that money all onto debt or in a savings account for a house deposit if you have paid off all your debt.  To reiterate, pay off debt as fast as you can – get rid of it!  It truly is your money or your life.

When you putter along buying whatever catches your eye, you are tying yourself to a job you don’t like, paying off debt for dumb purchases.  I know because I’ve done that.  If you are worried about keeping up with the Joneses, don’t be (they’re probably in more debt than anyone else).

We could still have moved where we are having a huge mortgage, but it wouldn’t have been as stress-free financially and we would have had to get jobs straight away.  Being debt-free allowed us the luxury of having some time off before and after we moved.

When you have no debt you have so many more choices in life, and you don’t have to stay in a job just to pay the bills.  You have other choices.

Plus it allows me the freedom to be a writer without having in the back of my mind that we have to pay a big mortgage.  Worry and stress is not good for creative thinking!

Part 2 coming up

Join me next week for part 2 of this post (it was way too long for just one post!)  And in the meantime, I want to let you in on an early secret.  I am putting together information on this very subject.  It’s an in-depth step-by-step training on how I have written and self-published my own books.

Many of you have written to and messaged me about what I’ve done and how you can do the same.  I know that writing a book is something that a lot of dream of doing, and I want to tell you that it can be done.  It’s not that hard but you need to get your mindset right, plus know the how-to.  I’ll share exactly how I have created my own successful home-based career.

I have set up a separate email newsletter list which will just be about writing your own books and being an author online.  Join it here and you won’t miss out on anything.

Please let me know if you have any questions about this post (or would like me to expand on a specific point) in the comments section below, and I’ll be happy to answer. 


Otherwise, I’ll see you next week for part 2!


Fiona

29 comments:

  1. Thanks for this Fiona! We're working on paying off our home loan at this point and then figuring out how we want to live after that.

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    1. Good luck Jess, you can do it! Keep the inspiration up and get excited about that last payment you're going to make. I still remember the day ours went through.

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  2. Great post! You are very wise and I look forward to more on this topic!

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  3. Fiona, I'm in my early 60's and retiring at the end of the year. There are many things I love doing, and I enjoy spending time with my family. I'm a little concerned about how to structure my days, though. Do you have any suggestions or could you speak to this in a post? I've read pretty much everything you've published and can't remember whether or not you've written about this before. Thank you so much!

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    1. I'll definitely do a post about how to structure your day, Pammie. I'm getting into a bit more of a routine now that we're all unpacked and settled.

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    2. I am interested in this as well. It sounds strange but some days I think I need to keep working so I don't just sit around all day and veg. I live alone so I don't have that other person to give me a push. I thought I could go volunteer but realized I was just looking to fill time and I might as well earn money at the same time (=job !!)
      Love to hear your thoughts...

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  4. Dear Fiona, Thank you so much for this! I think I need to review my expense sheet ;) Unfortunately, I've succumbed to a bit of lifestyle inflation lately and I need to get back on track. Your post has reinvigorated my interest and need for financial security. I feel like my husband and I may never be able to retire. Pretty much everyone I know feels the same way, you would be surprised. Thank you for your realistic example that it can be done, it's reassuring to know :)

    There are so many things you've written about here that I can apply immediately, things like cooking more of our own meals - we eat out far too regularly; substituting entertaining at home rather than going out; Using up my clothes instead of shopping when I don't really need to. I feel I can do a lot better than I have been. The small things definitely add up over time.

    "When you putter along buying whatever catches your eye, you are tying yourself to a job you don’t like, paying off debt for dumb purchases."
    ~ I need to always remember this!

    My latest obsession has been skincare, and you know how much money can be spent on even one product ... not good!

    I'm anxious for Part Two. Thanks so much!

    D.

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    1. I think many of us can be lured by lifestyle inflation (love that term!) For me, I put the blinkers on to block out everyone around me, and focus on what would make ME happy, how would I like to live.

      Don't think of cooking at home and using your clothes as deprivation either. I like to imagine I am living an old-fashioned European lifestyle. When I'm in that mindset it seems unappealing to constantly be in malls shopping (not that there are any malls where I live now, but there are definitely shops!)

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  5. Dear Fiona, thank you for sharing your wisdom on this subject! Obviously, you and your husband have done something (many things) right. My biggest challenges for living a more frugal life are preparing more meals at home (I don't enjoy cooking, and my husband "can't" cook) and enjoying more home entertainment (including just sharing coffee or tea at home instead of always going out for it).

    I'm also very excited to sign up for your emails about how you've written and self-published your own beautiful books. Thank you, as always, for all you share with your readers.

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    1. Hi Karen, that's great that you can immediately identify two areas to make changes. With coffee, it's nice to invite someone around to your place for afternoon tea instead of meeting in a cafe, or if it's me and my husband, one of us will make coffee or tea and we'll sit in the sun (inside or out) to drink it and have a break. You can always decide how many times a week you want to have a drink out too - maybe twice a week instead of five times to start with.

      With cooking, you can start by assembling meals instead of cooking from scratch. It will still be cheaper than eating out and the quality will be higher. An example is fresh pasta with a gourmet chilled sauce already made, pan-fry some chicken or chorizo to go in it and serve with a bagged salad.

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  6. I, too, managed to "retire" when in my late 40s. Paul and I have always lived a simple, thrifty lifestyle, at first from need, but then from choice. Our first apartment together, we furnished with finds from garage sales and dumpsters. I would give them some paint and make some cushions, and everything looked very wabi-sabi and chic for little or no money. Most of our furniture is still second-hand. We seem to have a knack for finding exactly what we are looking for at garage sales and consignment shops. It requires part patience, and part serendipity. Most of my clothes come from consignment shops, as I like good quality clothing, but hate paying full price for anything. I have a minimal wardrobe, in a few neutral colors, and I wear things to death, not because I "have to", but because I love them.

    I inherited my home from my mother, and as it was paid for, we made a few renovations in it ourselves and made it our own, instead of "buying up". An inheritance that I got from an uncle was invested, and I get a small stipend from that every month. By continuing to live frugally, I don't have to go out and find work. I cook from scratch, and I even bake bread and make yogurt. We have a small vegetable garden in the summer, and I can our excess for the winter months. I still go garage-saling every Saturday (which is where I found my pressure canner and yogurt maker!) and think of it as "hunting" -- a sport and a recreation, rather than a necessity. It's all in how you frame it.

    We don't have cable or satellite hook-up, relying on Netflix for viewing, and we read a lot (both second-hand books, and from the library.)

    Most people think this lifestyle cannot be done, because they have come to rely heavily on ready-made, overly processed food and a closet full of clothes in every color imaginable. They think they "need" a smartphone and premium cable. Actually, there is very little that one "needs". All the excess is stuff that the advertising industry brainwashes you into thinking you need. And don't get me started on the term "retail therapy"! AAARRGGHHH! I cringe whenever I hear someone say it!

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    1. Gosh Mimi, what a wonderful comment - thank you for sharing your story. You were fortunate to inherit a home (though not to lose your mother at a young age), but I know it's your thrifty ways that have enabled you to live such a life. And it's not even thrifty really is it, it's just not buying into all the advertising as you say.

      Now YOURS is a book I'd love to read, Mimi!

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  7. This is brilliant.
    Not frittering away money on stuff is so wise. But spending it on experiences, like travel, is good--you don't want to be so tightfisted as to not enjoy life. You have walked that line very well and set a great example.

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    1. I feel happy where I sit between spend and save, yes. I'm definitely not too tight-fisted to enjoy life and have experiences such as travel.

      Compared with Mimi's comment above, I feel positively a spendthrift!

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  8. Wonderful how you've made your dreams come true Fiona. It's definitely true that we can fritter away money. I don't want to even think how much I've wasted over the years! Looking forward to your writing tips. xo Deborah

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    1. I've frittered plenty too, Deborah, don't you worry :)

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  9. I love the picture! I'm so glad you are doing more than one post on this topic. I want to hear more :)

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  10. Such a great topic. I am new to your blog and came here for "chic" clothing but am so incredibly happy to hear you are also into living well on less but not sacrificing enjoying life. I am a frugal gal myself and do my best to get the value out of what I purchase but also to love what I have so I don't mind "using it up."

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    1. You sound like my kind of gal, Jenifer - welcome!

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  11. Along with a couple of other commenters, I am interested in how you structure your day. I'm ready for early retirement (and since we've always lived much below our means, and since mine is not the primary income, we probably won't feel the loss), but I've been hesitating because I'm afraid I'll stagnate and be isolated. How do you prevent isolation and stagnation?

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    1. Great question, Renee. I'll put something together :) Thank you.

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  12. A lovely post, Fiona. I have never really structured my day (or our days since husband retired, almost 20 years ago.) We haven't felt the need as we tend to do much the same things that we did before retirement, only during the daytime and not compressed into evenings and weekends when work took up those hours (paid employment, I mean.)
    Actually, we don't like our days too structured. When you get older (as you will, it's inevitable!) you will find you naturally slow a little; you will need to rest a bit more between simple chores (I am almost 73, husband close to 82). Years ago I could whip through the housekeeping and have time to do other things, now I have to choose between cooking, baking, housekeeping, or going out for a walk, I can't manage all the lot on the same day! But I don't mind, it's what happens. I hope that this isn't depressing, but more realistic and, hopefully, more reassuring in a way, as we're happy in our own skins, doing what we can to keep our home looking clean, home-cooked food on the table, etc. We live relatively simply, we don't have smart phones or extra paid-for TV channels, only Netflix and I'm considering ending that, too, as there are few films being made that we want to see.
    However, I do think 46 is a trifle young to "retire". Perhaps you will become a full-time writer, that is a job in itself. Mind you, I gave up "the day job" at 48, but that was through health problems; husband continued to work until he was 63.
    Whatever you and your husband do, I hope you will continue to be very happy in your new life in the country.
    Margaret P
    www.margaretpowling.com

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    1. Margaret, I have found that since we sold our business, which took up 4-5 days for me, and 6 days a week for my husband, that we now spend our days 'living' - taking care of the house and property, cooking, groceries, admin and paperwork and for me, my writing. So I know what you mean about taking all those things that used to get squeezed into a smaller amount of time and letting them spread it.

      I'm definitely not retired, not by any stretch. Just retired from an external workplace but definitely being a work-at-home writer :)

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  13. A wonderful post, Fiona. And it stimulated a lot of comments and queries. I agree that being frugal doesn't have to mean missing out. As a society we are encouraged - bullied even - to spend spend spend on yet more stuff !! So many are in financial distress and working jobs they hate to pay for stuff they don't need. Our indulgence is good quality food (most of our dinners are eaten at home and lunch is often yummy leftovers). Due to my chronic health issues I haven't worked full time for over three years which has forced many changes upon us. I'm grateful for my frugality (is that a word) as it has enabled me to still enjoy treats and luxuries - they're just different to those I enjoyed when working but the sense of pleasure is the same :)

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    1. You make a good point, Lara. True luxury for me is having time at home, rather than simply buying stuff (which you have to work to pay for). At the same time, I really appreciate the few fancy things I do have.

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  14. I wish I had had your sense earlier in my life, Fiona. I always worked hard and fell into the trap of thinking I deserved the best because I had a good salary. I went to uni in my 40s and retrained as a teacher, racking up debt to pay for it. I assumed I would have years and years of working but burned out 7 years later and had to take ill health retirement. My husband is still working full time at age 70.
    The weird thing is I absolutely love being at home, living a frugal life, learning to do all the things I used to pay others to do for me. For the first time in my adult life, I am stress free!

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    1. Hi Susan, not all of us take the same path, and I believe that where we all are right now is where we are meant to be. I'm so happy to hear that you love your life at home being frugal. Stress-free is a wonderful thing to be!

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Merci for your comment. Wishing you a chic day!

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