I’ve been doing a lot of reading – and thinking – about retirement for a new project. In the last few posts, we’ve looked at net worth (including your home), and retiring. But what is the difference between ‘traditional‘ and ‘early‘ retirement? In this post – the 100th post on Enrichmentality! – we’ll tackle this question.
When it comes to talking about retirement, it surprises me how often I hear people say things such as ‘the government won’t let me retire until I’m 65’. Or, ‘by the time we’re ready to retire, they’ll have pushed it back to 70’.
But there’s no reason to assume that your retirement age will be the same as your superannuation preservation age or your pension eligibility age.
The typical mortgage in Australia comes with a 25 or 30 year term. But that doesn’t mean you should aim to pay off your mortgage over a three decade period.
The end date on your mortgage document is like a speed limit.
It’s not something to aspire to. It’s something you should try to stay well under.
I’m not talking about personal value here, but net worth.
The net worth of the richest people can be fascinating. Bill gates has $86 billion. Warren Buffett, coming in at #2 on the list, has $75.6. But has anyone’s net worth been discussed as much over the past year as Donald Trump’s?
Figuring out how long you can plan a holiday for, or whether you can afford to travel long-term, is a relatively simple calculation if you have the right variables. In a previous post, I illustrated a few different methods of calculating short, medium, and long term or even permanent travel, but all of them are based on how much you will spend each day.
I mentioned the figure of $50 a day, which for some, might sound entirely unreasonable. That’s how much Paul Terhorst suggested in his book, Cashing in on the American Dream, which is what inspired my husband and I to begin our current travels in large part, and was the impetus behind my most recent post, the first in a series probing the notion of the American Dream. But Terhorst’s book was published back in the 1980s, and the world is, unarguably, different today. One could even say it’s a different world since I wrote my first post in this series on the American Dream two days ago. So is travel on $50 a day still possible?
I have always found it strange that the gold watch (or clock) has long been considered a traditional retirement gift.
Surely once you are retired, you will have more time to enjoy, and less cause to watch the minutes tick by to home time, less need to set an alarm to wake you up?
Sitting on the bus from Cork to Dublin, I got to thinking about a recent discussion I had with fellow traveller and blogger Elizabeth the Island Enthusiast about the different ways of calculating how long you can travel for – whether for a quick jaunt, extended – or even permanent – travel.
Walking past a bakery in Bergen, Norway today, I was consumed by the sweet aroma of hot cinnamon.
In to Baker Brun we went, to buy a Skillingsbolle, described as ‘the all-time favourite Bergen treat’ with a name originating from its original price of one shilling. In fact, the word ‘shilling’ itself derives from the Old Norse scilling meaning ‘division’, and was a division of the old Norwegian Rigsdaler.
What interests you about the concept of freedom? No matter what our money goals, those of us fortunate enough to earn more than is required to satisfy our basic needs are generally aiming for some kind of freedom. Freedom from working as much, or at all, the freedom of your next holiday, of finishing your study, of whatever.
For me, it was the millions of little things.
Now that you know how much you need, and where you sit on the financial independence scale, let’s combine the two: how much is enough to be financially independent? Continue reading “How much is enough to be financially independent?”