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Is 30 too early to retire?

by alex brownbill

I read an awesome article last night. I’ll link you to it at the bottom if this. It was written by a man who retired at 30.

Now, before I go any further, what does retirement look like for you? For me, it’s not an absolute term. One of my personal aims is to never retire, but to build my business to a point that it can earn me what I need and operate independently of me when I want. It’s going ok. I’m a month out from 30 and nowhere near the possibility of retirement though!

With the vast majority of clients we assist, the desire is similar – keep on working in some capacity (not necessarily in their current job). Work because it brings value and enjoyment.

The desire of people for the separation of work and the requirement to earn enough to live is almost ubiquitous, but I believe that many people have never actually drawn that distinction. Instead, they just see a requirement to earn more than they currently do in order to achieve whatever they believe will make them happier – a larger house, nicer car etc etc.

I should put in a disclaimer here that I too am guilty of this. I too have a desire for a larger house in a nicer location. It’s a damned difficult thing to squash!

So, instead of seeing your freedom in a bigger pay packet, you should be seeing it in your investments. If you had the choice between earning $100,000 without lifting a finger or $200,000 working 10 hours days 6 days a week, what would you prefer?

A really simple rule of thumb is to figure out what you need to earn annually and multiplying that by 25. For example, if you deem that earning $100,000 (before tax) will allow you a great life, you need $2.5 million. Over the long term, that sum should return at least 4% ($100,000) which you can withdraw and use year on year.

OR you could build a business that runs while you’re not there.

I’ll leave you with that today. Here’s the link to the article. It shifted some of my perceptions. May it shift a few of yours!

I retired at 30. The best part isn’t leisure — it’s freedom.

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