Know When To Alight

Dear Readers,

I'm pretty sure that like me, most of you have a set retirement date and amount of money you want to have at retirement in mind. However, can you honestly say that when you eventually reach that much awaited point in your life, you could just stop what you have been doing for say 20 years and start a 'new' life?

I wonder what I would feel at that time as a person who likes to have a large margin of safety. I guess I would wonder to myself as to whether I have sufficient funds to allow my family to live comfortably. I would also ask myself what I would do with so much of my time. I do have a list of things I would love to do now, but would it be the same 15 years down the road?

Anyway, what I wanted to say in this post is that, besides having enough money, there are other things to consider before alighting at your retirement stop.

• Friends - I'm talking about close friends that have been with you through the years. You having an early retirement does not mean that they too are having one. Will you have to look for new friends to participate in all the activities you planned for during your extra time in retirement?
• Health - Are you healthy? It affects everything, from the amount of money you will have to spend to the changes in your mood. Make sure that you are well covered insurance wise and also please eat healthily and exercise more so as to keep a healthy body. ( Note to self : Please practice what you preach)
• Family - Are your immediate family members supportive of your decision? Is your spouse going to continue working or is he/she going to retire early as well? I feel that everyone in your immediate family should be comfortable with the situation if you are to have a happy and early retirement.
• Career - Are you ready to leave your career behind? Something that you have been working hard for through the past decades of your life? If you are not, you could consider semi retirement first before the transition to a full retirement. Anyway, I feel that we should not let our careers define our lives. Straying a little bit from my point here but I was wondering, at the moment, if someone asked you what you do, without a thought, you would say Engineer or accountant or doctor. What happens when someone asks the same question after you have retired at a young age? Er, I do....things I like? I do..Life? Anyway, just a thought, no further thinking required. 
• Hobbies - What are you going to do during all that free time? It's not as easy to fill as you think. I once took a 1 week break and realized that it's extremely boring not to have a goal in mind. What's worse was that I was the only one I knew that was not working that week so in a way, I was alone. Perhaps a preview of early retirement if my wife continues to work. - I'll have to reconsider a full early retirement until my wife retires as well. Actually these days, I'm more inclined towards a semi retirement as my wife and I should be starting a business of our own real soon. Fingers crossed it works out.

So there you have it, some pointers to consider in order to make sure that you are ready when the time comes. I wish you all the best whether you are just about to start your journey or are towards the end of it.

As always, save more, spend less and invest wisely.

C'mon, let's get another round of drinks! Dont be boring.

Does the title sound familiar? I'm pretty sure you have heard something like that before. You can substitute the word drinks for shopping, food, hand phone and so on.

You feel pressured to spend and conform when your friends request that of you. Deep inside, you are feeling uneasy as you know that you are eating into your budget and spending way more than you actually should. Yet, to gain social acceptance, you dig deep into your pockets and scrape the dollars off the bottom.

I feel we should always do things in moderation. If you are always saying no to going out and having fun, soon your friends will stop calling. However, if you are always saying yes, you are seriously endangering your savings and retirement planning. The key is always knowing when to say yes, when to say no and when to give a better and less expensive suggestion.

If they are truly your friends, they will definitely hear you out and understand. (But not before making a sport out of you.)

Here are a few less expensive alternatives:

1. Buying beer from the supermarket and head to one of your homes to drink rather than heading to the pub and paying easily 3 times the amount. What i learnt from experience is that it's always the company and not the venue that decides whether it was an awesome night or not.
2. Get everyone to make some food and head to the park or something for a picnic rather than going to a fancy restaurant to eat. You might find that the fresh air and change of environment is extremely welcoming.
3. Buying a dvd from the store and watching it at home instead of going to the cinema to catch a movie. The dvd would cost between  $10 to $25 for all of you instead of approximately $10 per person should you go to the movies. Buy microwavable popcorn to ease in those hardcore movie goers.
4. Instead of going shopping at the mall, why not visit a flea market and have the same amount of satisfaction. You will be surprised and the amount of stuff you can find at a flea market.

The list goes on and on. Just use your imagination and I'm sure you, your friends and family will have as much satisfaction and enjoyment at a fraction of what you would have spent otherwise. Once again, i would like to say this.. It's the company and not the venue or amount spent that matter. If you are with friends and family, even the simplest of food will be a million times more enjoyable that a royal feast with...for absence of a better word, enemies.

As always save more, spend less and invest wisely.
P.

Are you commited to your cause? Hear no Evil, See no Evil.

Good morning everyone, its finally Saturday. What a relief after such a long week at work.. Thankfully there are only 4 of those next week.

So...What is everyone planning to do later? What??? Window shopping at the mall? (HisssSsSsS!!!)... Just kidding. Anyway, have you ever wondered how committed you are to your cause? How much temptation or peer pressure can you resist to in order to get to where you want to be faster?

To me, I have never felt the need on spend on most, i repeat MOST consumer goods. My only kryptonites being the latest gadgets and drinking. I kind of understand the obsession my wife, C has over shoes and bags and clothes and jewelry and wallets and macaroons and... did i mention shoes(100 pairs...OMG..WTH... FML..feel free to add any other abbreviations.)

On second thoughts i realize that i don't. How can someone be obsessed with so many different things..erm.. ok, enough of my rants.. back to the topic.

I'm very sure that many of us who have made the decision to retire early would have set a goal or goals as to how much they must save a week, a month or a year. In order to attain that early retirement, we would have to strictly adhere to this goal and not waiver as every waiver would cause that much awaited retirement date to be pushed further and further.

We must not give in to the temptation of buying these wants, and if we really do, we must not impulse buy only to realize 2 weeks after that we don't really want that item at all. What i normally do is procrastinate ( naturally gifted in the art of procrastination). This is one of the only few scenarios is life whereby procrastination serves a good purpose. I would start by reading reviews, scouring Cnet for bad review(while secretly hoping to find none). Then i would talk to my wife about it, weighing the reasons as to whether i really do need the items or not. and finally going to a few thousand shops to view the item multiple times - I Kid.....you...not.

The outcome usually turns out the same, i realize that i don't really want the item. ( Mainly because i procrastinate so long that the next version comes along..and my wandering eyes...wander..) On the other hand, when after all the procrastination and pondering and I still want the item..I would then purchase it. With money on hand and not on credit.

That said, as i grow older, I feel that my priorities are changing. I do not feel the need to buy so often anymore. I now shift my focus more towards experiences rather than on consumer products. I would want to learn and experience new things. Learn a new language, a new skill, go hiking and so on. I am beginning to feel less need of material things. I kinda like this change and hope that one day, my other half - that shopaholic, with her morbid obsession to buy - will share my views in life.

Any suggestions as to help her see things my way without counseling will be welcomed! I'll buy you an 8 course meal at a top restaurant if it works.. yes..I'm pretty desperate. =)

ps. you are only as strong as your weakest link.

As always, save more, spend less and invest wisely.
P.