Celebrating the Work Optional Lifestyle!

Imagine getting up on Monday morning knowing work was completely optional.  How would you feel? 

What would you rather be doing with your time?  Would you rather walk along the local park trail with your children or grandchildren, snap photos of a pride of lions on a safari, or perhaps volunteer to make this world a better place?  Or do you love your profession so much, you would like to carry on with it, but still know you can walk away if you choose? 

Welcome to the work optional lifestyle, the point in your life where you can choose to work rather than HAVE TO work.  This option is a milestone and does not have to be difficult to achieve. In fact, you may have already arrived at this milestone without knowing it.  However, knowing when or at what age it can be accomplished can provide motivation to stay on the path to reach a work optional lifestyle sooner rather than later.  

How do you properly prepare for this lifestyle and when do you know you have arrived?  First, you must look honestly at your numbers. For example, is your forecasted personal spending plan realistic?  The cornerstone to a successful work optional lifestyle is to have a plan that is intentional, dynamic, and ongoing.  It involves mapping out how and when you are going to achieve this goal.  Once achieved, you will want to protect and preserve it.

When planning, you must quantify how much your lifestyle really costs. What are your income sources? And, how much you have saved? Next, integrate inflation, taxes, and health care costs into your personal plan.  What blind spots are not being considered?  As an example, there is a guideline I call 25X.  If you are accustomed to living on $180,000 per year, multiply that hypothetical spending level by 25 and you will be in the ballpark as to what you will need to have saved to maintain that income figure (adjusted for inflation) through a traditional retirement. Of course, there are other income sources and factors to consider, and the formula only serves as a guideline and starting point. The key is figuring out the income you will need for your scenario and where it can come from for the rest of your life.

Making the transition from employment income to investment income can certainly be scary. Especially during recent times!  We know life has its uncertainties and can throw us wild and unexpected curveballs.  However, with meaningful and careful planning, it can be one of the most exciting times in life.  If you choose not to work or are entering semi-retirement, what does it look like?  Your vision will be something personal to you.  I have found those who enter this phase in their lives find personal fulfilment in pursuing those activities that bring intense personal joy. 

Its Monday morning. Adventure awaits. Welcome to your work optional lifestyle!