15 thoughts on “My Early Retirement Strategy

  1. writing2reality

    I completely agree with you that developing and having a plan is important. A plan will help motivate someone to put together a list of action items (research, open investment accounts, save aggressively). Next to a plan, short and mid-term goals are also quite important. With a DG strategy, this can be hitting $100, $200, $500 per month in dividends or even $1,000, $2,500, $5,000 in dividends every year. Setting this goals will allow for progress tracking and the increased motivation to save and invest more.

    Starting a blog and being part of a group of like-minded individuals doesn’t hurt either… Whatever it takes to maintain the motivation to save and invest aggressively is important.

    Reply
    1. walletengineers@gmail.com Post author

      I’m really appreciative of the like-minded and supportive blogging community – both dividend growth investors and personal finance bloggers. I still get the stink eye from my family when I tell them how frugal I am.

      So far I have set the amount I want to put in but not the dividends I want to get out. Perhaps I should make a goal to make a more precise goal.
      Thanks for stopping – WE#1

      Reply
      1. writing2reality

        I would imagine setting some dividend specific goals will help to focus your investment decisions and perhaps encourage even more investing. Certainly be careful of yield seeking to hit milestones, but it is always great to note different levels of achievements. Additionally, with any DG investment, the point is a growing stream of passive income, so tracking the growth of that income level is important!

        Reply
  2. JC @ Passive-Income-Pursuit

    So often people focus on the fact that saving is hard and forget the added benefit that each dollar you don’t have to spend now is a dollar + inflation you won’t have to spend in the future. Decreasing your lifestyle and therefore expenses let’s you save/invest more but it also lowers your total required investment or future dividend stream.

    Coming up with a plan and sticking to that plan is a big step for improving your financial life whether you’re striving for FI or regular retirement. If you don’t have a plan it’s the equivalent of throwing sh!t to the wall and hoping some of it sticks.

    Reply
    1. walletengineers@gmail.com Post author

      Or throwing that feces into a fan, hoping it coats the walls evenly and not yourself! And I especially agree that making a plan is beneficial regardless of your timerame, goal, situation, etc.

      I agree completely with your comments, though. You have hit everything right on the head. Thanks for stopping and glad to have you!

      Reply
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  10. Chris

    This does seem like a good strategy, and it’s cool to see the power of compounding. However, $16,000 a year of disposable income? That’s really low. I’d be interested in seeing how early retirement is a possibility for someone who spends more than that. I don’t know what your salary is, but I know I would prefer to live a bit more lavish lifestyle even if it means I have to work longer.

    Reply
    1. walletengineers@gmail.com Post author

      Hi Chris,
      Low is all relative!
      Jacob @ Early Retirement Extreme lives in way less.
      Mr Money Mustache lives on a bit more
      http://www.mrmoneymustache.com/2015/01/16/exposed-the-mmm-familys-2014-spending/

      You can certainly modify my plan – save more, invest more, work longer, etc. I think it’s a great starting point for anyone. But investing early is the key!

      $16,000 is a good starting point for me. It’s a value at which I would feel comfortable never working again. It’s not a value where I would eat out several times a week, buy expensive wine, go to a lot of concerts, drive a stupid new car.

      Either way, it’s great that you’re reading, learning, and working on your own early retirement. It’s awesome that you know how your lifestyle would feel on $16,000 per year!

      Keep up the hard work, early retirement is just around the corner.

      Thanks for stopping by,
      Wallet Engineer

      Reply
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