Millennial Trend to Quit Work Early

Millennial Trend to Quit Work Early

 

Millennial Trend to Quit Work Early

You have a choice

Recent studies suggest that over half of millennials in North America do not see themselves as ’emotionally and behaviorally connected to their job and company’. Exhausted from high-pressure jobs and with a growing sense of burnout, some millennials are following a personal finance strategy that allows them to quit the day job and retire decades early.

 

For them, the new definition of retiring is

You have a choice.

 

Your Money or Your Life

In 1992, Vicki Robin and Joe Dominquez wrote the defining work Your Money or Your Life. With the last edition updated in 2018, this book is still a best-seller almost 40-years later.

Your Money or Your Life

 

The FIRE Movement

It is this book that led to the FIRE movement which means:

 

Financial Independence, Retire Early

 

The basic premise is that you can retire, not on your age, but the income you generate from investments.  The FIRE formula for retirement is:

 

You need 25 times your annual spending to be able to retire early.

 

This means doing your savings over a 10 to 15-year period early in life rather than extending it out over 30 years.

 

The Power of Compound Interest

The philosophy is based on the Power of Compound Interest.

 

Sign up for Financial Mappers’ free financial literacy program Money Smart Tips in 3-minutes a Day.  The first video clip is “Compound Interest”.  The clip starts with the quote:

 

Compound Interest is the eighth wonder of the world.  He who understands – earns it. He who doesn’t – pays it. 

Albert Einstein

 

Financial Independence Retire Early

There are numerous blogs in the FIRE movement. For a good one-page summary I would recommend Bryan Denny’s blog Financial Independence Retire Early.

 

Denny says the basics of the FIRE movement mean you have to:

 

  • Change your lifestyle to live frugally
  • Pay off your debts
  • Calculate how much money you can live on each year and stick to it
  • Set up a detailed budget
  • Cut back on non-essential spending and save as much as you can
  • Increase your income
  • Invest for your retirement

 

 

Nicole Spector, NBC News, in her article Millennials are determined to retire early.  Here’s how they can actually pull it off, says that

 

43% of millennials expect to retire before age 65

Cash Flow Modelling Software to achieve your Goals

This is quite a challenge and for those who want to attain early retirement, sound cash flow modelling software such as Financial Mappers is a good means of developing a personal strategy that will achieve your goals.

 

financial planning software

 

 

Twenty Good Summers

The FIRE Movement is not the only group providing answers to those who want to retire early.  My personal favorite is Twenty Good Summers by Martin Hawes.  His philosophy is

 

Work Less, Live More and make the most of your Money.

 

Read my book review

twenty good summers

 

 

Playing with FIRE: The Millennial Movement to Quit Work (Early)

While I am not advocating some of the extreme FIRE Movement saving’s plan, I do believe that this video posted on BBC News will give you many insights into how you can reduce spending and achieve the “Retire Early Goal”.

 

Some will think that they love their job, even after attaining retirement age.  That’s great, but it may be wise to ensure that you have a choice.  Sometimes poor health or employment opportunities may force early retirement.

Click the link to view the BBC recording.

 

millennial trend to quick work early

 

 

Glenis Phillips SF Fin

 

 

 

 

 

 

 

 

Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.

I am a founding board member of Plencore Wealth Ltd and Plencore Online Pty Ltd. I am the designer of the product Financial Mappers and Financial Mappers PRO, cloud based modelling software for Personal Finance. This software is sold on the web site www.financialmappers.com.au.I am an educator, investor and expert in both personal finance and mathematical modelling and the author of 'Map Your Finances'.I have both a Graduate Diploma in Applied Finance and Investments and a Diploma in Financial Advising from the Securities Institute of Australia. I also have a Financial Analysis Certificate, by Distance Learning from University of Technology, Sydney. I am a Senior Fellow and Senior Mentor of FINSIA.

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