The (Early) Retirement Plan

THE (EARLY)

RETIREMENT PLAN

As I flip through these digital photo albums of a recently concluded trip to Palawan in The Philippines,

I find myself racking my brain how I could make vacations like these permanent, instead of temporary.

I mean, isn't that the case with places of such out-of-this world magnificent beauty? The minute we

arrive, something about that place immediately sends signals to our brains that we have to take up

residence in this paradise immediately.

And that is why travel is so addictive that it is not all that uncommon nowadays for some people (I'm not picking on you, millennials) to quit their jobs and start nomadic lives backpacking and

blogging their way around the world. Many parts of that lifestyle is enviable as their Instagram

feeds, I'm sure, as little Gen-X-er me toil away at my desk, impatiently tapping my foot until I have accumulated enough paid vacation again so I can hit the road again. But the other

side of that coin could also be fraught with uncertainty and financial anxiety.

I love ice cream and carbs and I would eat them all day long without working out if I could.

But the harsh reality is I couldn't.

So I came up with a radical yet sensible plan (at least to me) that I've been brewing for the last couple of years now.

Retire early*.

And by early, I mean in my 40's.

And then travel the world like crazy.

On days when I get frustrated that I don't get enough time to travel (#greedy), you wouldn't believe the sense of calm and reassurance I get from running scenarios on a spreadsheet validating that the life I'm working towards is almost within sight.

EARLY RETIREMENT?

I know, it's such an adult word to use but "retirement" implies a permanent status. I won't quit working for a couple years and rejoin the workforce after a couple of years on the road. Once I'm out, I'm out.

Retirement also means a guaranteed fixed income based on money I've put away now to use later.

* I have no kids and I understand that the situation would be different if I did. Also, I have a retirement plan that doesn't require that I retire at 65. I will take a hit for jumping ship early, but I considered this in my calculations.

THE BIG HOW?

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1 START EARLY

The earlier you start, the more opportunities you'll have to squirrel away money. I know it's easier to be shortsighted in your twenties, but really, if I knew then what I know now, I could be on an accelerated track to investing on my future.

2 WORK SMART

Strategize and position yourself to where you could maximize your earning potential. In other words, try to earn the most money possible. I'm not talking about being ruthless or stepping on people on your way to the top. If there are promotional opportunities, go for them. Use your leverage to get a raise. Also, when considering jobs, consider not only the salary package, but look into the benefits package. How much of health insurance would the company cover? Does the employer match your deferred compensation (i.e. 401k)?

3 DON'T GET INTO DEBT

I had an ex-boss once who hated paying interest on anything, except maybe on a mortgage. She hated the idea of giving away money to the bank/lender as interest - money you could be stashing away in your pocket. So pay everything with cash as you go. Don't use your credit card because you can't afford it. Always pay the full balance due on your credit card statements. Pay off your car and don't get into any more debt after you do.

4 HAVE A STRATEGY TO PAY OFF THE MORTGAGE

For me, this is the hardest one to crack especially since mortgages are so huge. But after refinancing to get a lower interest rate and a shorter term, I figure that if I put in extra towards principal every month, I would actually pay off the house by the time early retirement rolls around.

Why is this important? My biggest monthly bill is my mortgage. I know I won't be making the same amount of money that I'm making currently if I quit before I'm 60. But if a huge chunk of my income is not committed to a mortgage, then suddenly I have all that money for myself. If I decide to rent out my house then, that passive income would also go straight to me and not a house payment.

5 SQUIRREL AWAY AS MUCH AS POSSIBLE

I'm not strict with a budget, but I have a target in my head of how much I should be putting away in savings every month. I don't have a sophisticated way of saving and/or investing, but a friend of mine uses a financial advisor and it seems to be working well for her. The idea is to cut out all the crap you're buying unnecessarily and put money away either in savings, retirement, or investments - or all!

6 BE PREPARED TO MAKE SACRIFICES

Right now, you won't be able to say yes to everything that costs money that comes your way. You can't be gone from work for more than four weeks out of the year. For me, not working anymore (except for passion projects) in my forties means that I need to be okay with a pay cut. Yes, the income would be guaranteed, but it would not be at the same rate I'm earning now. It is a sacrifice, but the thought of more than two decades of the grind screeching to a halt is so very worth it to me. I mean, just the thought of not having those Monday morning blues alone...

7 KEEP TRAVELING

Even after #2 to #5, I make sure that I make some room for travel a few times a year. Not only does it provide a pressure release valve from the monotony of the daily grind, but it reminds me of why long-term goals are and why I'm making the sacrifices that I'm making. It renews my appreciation for my job, since after all, none of my lifestyle would be possible if not for it.

Work has gotten such a bad rap, especially when millennials have found loopholes in how things have been done for centuries and are jumping ship right and left to travel the world on press trips, blogging, selling social media content, and freelancing. But as hard it is to believe, even for people like me, is that work is a privilege just as much as travel is. As much as I go back after a trip dragging my feet, I do appreciate its worth and utility in my life. Despite all the whining, I am in love with my life and I am convinced it is the best of both worlds. It grounds me. It gives my days structure. It gives me worry-free health insurance and it helps me secure my future financially. Most of all, it pays money - the money I use to travel on my own terms, to stay in comfortable places, in countries of my choosing. Overall, I am a better person because of it and the many years of training, learning, working with people (sometimes with difficult ones), and sorting out complicated problems.

The world we live in is a world of instant gratification. Everything we want, we want now, because we can get it now - information, photos, connections, and apparently, seeing the world. Want a meal? Grab cup noodles and just add water. But seriously, the best meals I've had in my life are those that have been painstakingly prepared and it involved some amount of waiting on my part.

Some things are still worth the wait, so no, thank you to the cup noodles. I'll wait.

Finally, the photographs featured in this post, like the rest of Coron I've seen, have fortified my goals of early retirement. These were taken from a place called Twin Lagoon in Coron, Philippines. I'm not sure if that's the official name because it doesn't appear on the map as such, but that's what our tour guide said.

Regardless of what it's called, this place, much like the rest of Coron that I've seen, is ravishing. The colors of the water are teal in some parts and deep, dark blue in others. Our boat kept going until we reached an area blocked off by these signature Coron limestone cliffs. We were told to jump off the boat and we were guided to swim under a small opening underneath a rock face (it was during low tide, otherwise, there were makeshift steps to take you up and over). Once on the other side, the water got deeper and saltier as this is the area where fresh water meets salt water (also called "brackish water"). There were massive jagged cliffs in every direction and the sounds you make bounces around the towering walls before they disappear into infinity.

While not yet in the UNESCO Wold Heritage Site list, Coron Island has been submitted to the tentative list.

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What do you think? Have you contemplated the idea of shortening your career in pursuit of your wanderlust dreams? Share your ideas in the comments below!SaveSaveSave

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