“You want to retire WHEN?!”
I haven’t decided if retire is the right word, but that’s the easiest way to express my goal when I’m speaking with someone. In all honestly, I don’t know that I would retire at 30. But I do want the ability to do what I want, when I want.
I work for a small engineering firm and a common topic around the office lately has been to discuss how long an individual has been with the company. For several of my coworkers, it is going on 24 years with the company. And yes, I’m quick to point out that they have been here since I was born – they cringe at that. This was my first job in my career after graduation and I’ve been here a little over two years. Hearing their answers makes me realize I don’t want to be anywhere that long. These conversations have rekindled my interest in finding alternate means of making a living.
When it is so common for us to work 30+ years, it’s no surprise the patronizing tones I receive when I mention I plan to ‘retire’ by 30. I don’t take offense to their surprise, but I do find the lack of support a little disappointing. Is it jealousy or pure disbelief that anyone would attempt a seemingly impossible task?
The 10% who aren’t immediately condescending follow up with:
“That’s interesting, how do you plan to do that?”
“Well, “ I say, “with my current expenses and following the 4% Rule, I need about $700k.”
And that’s where I loose them. Forget the mention “current expenses” or “4% Rule”. All anyone hears is $700k in six years. Simple math shows you that in order to achieve that I would need to make $116k a year, and that’s if I had no expenses! Sadly, at 24 my salary is nowhere near that. Clearly I would need another (more than likely more than one more) source of income. There are all sorts of theories on the best ways to earn secondary/passive income – real estate, dividend stocks, etc – but that’s for another post.
So as of writing this post, that’s where I’m at: I need to earn more than double my current salary, and honestly haven’t figured out how to do that. The first step I’m taking will be to limit my expenses, which you can follow through my Monthly Expenses posts.