Early Retired Lifestyle: How to obtain the same lifestyle as an early retiree without retiring. Six Steps to enjoy early retirement.
Many people aspire to live an early retired lifestyle.
However, the truth is that retirement often still involves working a part-time job.
According to Statistics Canada, “close to one-third of persons aged 60 and over worked or wanted to work in the prior year.”
Surprisingly, only 5% of those reported their main activity was being retired.
In other words, 95% of persons who are retired or close to retiring are still working.
Essentially, you still work when you’re retired, you just work less hours and have a more balanced lifestyle.
If that’s the case, there’s no point in waiting until 65 to reach retirement. Clearly, the fastest way to an early retired lifestyle is through part-time jobs and flexible work.
In this post, I will show you how to live an early retired lifestyle in 5 years or less without retiring.
Let’s take a look.
Early Retired Lifestyle: How to Obtain it in 5 Years or Less
So, we have established that an early retired lifestyle still involves some form of work.
Most people that retire still work.
An early retired lifestyle means you work less and you have a more balanced lifestyle. It’s basically the same as Slow FI or Barista FIRE.
For example, a retired person may work a part-time job three days per week.
On the four days off, they take afternoon naps, golf mid-day, plan cruises, own cottages, enjoy more time at home, decorate the home, shop daily for groceries, watch beloved movies and shows, support family and friends, run small businesses, or spend time on hobbies.
But what’s the point of waiting until you are 65 to stop working if you can just get a part-time job now?
In theory, anyone could achieve a more balanced lifestyle with a high paying part-time job.
So, why don’t more people seek a more balanced life earlier?
Simply put, it’s not possible because most people spend too much money and have too much debt. They can’t afford to retire early. Alternatively, they just want a more luxurious lifestyle and accept the consequences.
On the other hand, if you have low debt and expenses, it’s possible to obtain a similar lifestyle to a retiree in just a few years.
Technically, if you can afford to work less but you can still afford the lifestyle you want, you are living an early retired lifestyle.
Based on the philosophy that an early retired lifestyle can be obtained simply by working less, here are six steps to live an early retired life style in 5 years or less:
Early Retired Lifestyle in Six Steps
1. Obtain a Full-Time Job
Ironically, to reach early retirement, the first thing you must do is obtain a full-time job.
The main reasons are because you need a high income stream to clear debt and to save up money for retirement.
If you clear up debt, you will have lower expenses and subsequently have to earn less money to cover your expenses.
Furthermore, by having money saved, you have an emergency fund in case you need extra money during retirement.
2. Maintain Low Expenses
To achieve an early retirement lifestyle, you must maintain low expenses.
Since you have less time to earn money if you want to retire early, the only two options are to become more frugal or to make an obscene amount of income.
Regardless, maintaining low expenses makes it easier to retire faster.
It keeps your options open for jobs, because you don’t need to earn as much to support yourself.
3. Eliminate Debt
As mentioned in the first point, less debt means less expenses.
To make your early retired lifestyle run as smoothly as possible, use the time at a full-time job to pay off any outstanding debt.
If you have a lot of debt, you may not be able to retire early no matter how much money you make.
4. Save Up One to Two Years Expenses
After eliminating debt, one of the major keys to obtaining a more flexible lifestyle is money.
Having money saved up provides options, flexibility, and a security blanket.
If you have money saved up, you don’t have to rely on anyone else to do what you want.
If you want to take a year off, look for more flexible work options, or retire early, you must have money.
The same goes for an early retired lifestyle—it’s not happening unless you save money.
To switch to an early retired lifestyle where you work less, you should have at least one to two years’ worth of expenses saved up.
That way, you are financially prepared for emergencies or if the part-time job doesn’t work out.
You don’t want to go into early retirement mode with financial pressure.
So, save up one to two years worth of expenses before you start working less.
5. Build One to Two Income Streams
Another way to have options and be more prepared for retirement is to have multiple income streams.
Better yet, choose income streams that are aligned with your personal hobbies and interests. This way you have a personal interest to work on when you retire.
In my case, I am building up income streams through blogging and dividend investing. Each month I get paid dividends from stocks I own, and advertising revenue for ads by Monumetric.
When my hours from my part-time job are lower, I still receive income from other income streams.
Furthermore, side hustles and additional income streams are a great way to reach financial independence faster.
6. Switch to a Part-Time Job to Have More Time
With no debt, low expenses, one year’s expenses saved up, and multiple income streams, you will begin to need your full-time job less.
Once you get to this point, you can switch to a part-time job to have more time now.
Fortunately, there are plenty of high paying part time jobs available.
In fact, you might end up being better off financially than when you were working full-time.
Imagine making nearly the same as you did full-time while working half as much… Trust me, it’s possible.
To get there, all you have to do is set yourself up by following the steps in this post.
If you provide yourself with enough flexibility, you may be surprised by the part-time job you end up with.
Anyways, get a part-time job to keep enough cash flow coming in to support your lifestyle.
Live an Early Retired Lifestyle
After you have set yourself up financially and obtained a part-time job, technically, you are living an early retired lifestyle.
You just used a cheat code to get there faster.
Since most retired persons work casually anyways, if you can afford to live off a part-time job, you are basically living the same as someone who is retired.
Therefore, it might make sense to start working less immediately to live a retired lifestyle sooner.
If this is done earlier in life, the time on the side can be more productive.
Early Retired Lifestyle – Final Thoughts
Ultimately, even a retired person’s lifestyle still involves work.
If you’re willing to live unconventionally, it’s possible to obtain a lifestyle that is similar to retired lifestyle within five years or less.
Of course, you could save up for traditional retirement.
But at least now you know the truth:
Retirement is not a dreamy life stage to look forward to, and it’s possible to live an early retired lifestyle now.
Related:
9 High Paying Part Time Jobs to Free Up more Time
Flexible Work Arrangements – 17 Reasons Why Flexible Work is Superior to Full-time Jobbing
Slow FIRE Financial Independence (Slow FI) is a more Balanced Path to FI
Why Working 3 Days Per Week is an Optimal FI Solution
I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric. This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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