Adequate Lifestyle

Sep 26, 2013 Comments Off by

Lifestyle influences early retirement date

A higher annual pending delays retirement. Early retirement is a compromise of hard work and little spending over a few years. There is no right answer on how much money you need to retire to sustain your lifestyle as this choice is purely personal.

Lifestyle is a Continuum

I have a high lifestyle price tag according to some people and a low one relative to my friends.

I consider it a high lifestyle because we have a car, live in a 2 bedroom detached home in a nice part of town. I have fancy furniture and nice clothes. I have done lots of exciting activities like long canoeing trips, dog sledding, oil painting, rafting, whale watching and skydiving. My motorcycle rocks. Mr Cannes is retired at 30 and Mrs Cannes will retire at 34 in 4 years.

On the other hand, I only have one car and live in a 900 sqft house. I take public transportation to get to work. My clothes are second hand and I barely eat out. The furniture I own was bought at a great price. My motorcycle holds much of its value due to buying it used. All activities have been planned for on my bucketlist and spaced out according to my budget.

Some lifestyle price tags amazes me. Mr Money Mustache and his family lives on $25 000 annually and have a very rich life. Adrian from 7Million7Years and his family lives a life on $350 000 and that is comfort to him. My family’s yearly expenses equates $80 000 which includes $22 000 towards aggressive mortgage repayment. When I retire at 34 after my mortgage is paid off, my family’s expenses will be $38 000 so we fit along the lifestyle continuum. Could I bring my family’s expenses down to $25 000? Yes I could but it is not worth the compromise to me therefore I am happy with my lifestyle.

Lifestyle and Friends

If I decided to have a much lower or more expensive lifestyle, I would probably need to change friends. I share a lot of activities with my friends therefore they influence my spending habits. If my friends made minimum wage, our entertainment would be very different. They would live in a different part of town and wouldn’t be able to partake in all the fun things I have on my bucketlist. I love my friends and want to maintain my friendships with them by maintaining my lifestyle. My friends and I share common traits such as education level and similar hobbies and I don’t want to compromise similarities.

Lifestyle is a Compromise

Having fun experiences and living in a detached home is important to me and I rather work longer in order to afford it. I want to make that compromise and that is my place along the continuum.

Your Lifestyle

Where is your lifestyle along the continuum? Is it where you want to be and what lifestyle do you want for your retirement?

Frugality, Goldeneer's Story, Lifestyle, Retirement, Strategy

About the author

Clara Cannes, the chief author from Goldeneer is a Canadian that works as a full time employee in the engineering field. Her passion is real estate, entrepreneurship and sustainability. Clara has finally reached financial independence in her late 20's and is on the path to a comfortable retirement by 35.
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