This is a completely rambling post about retiring, semi retiring, net worth, passive income and frugal living.
Option 1: To completely retire from the rat race.
You will need some sort of income. This income could be from a pension, from investments, from lottery winnings or from rental income. It could be from anything that provides you with ongoing passive funding to live your life.
Option 2: To semi retire from the rat race.
You will possibly have a part time job and some sort of passive income, or just a part time job, it depends on your expenses.
The amount of income you need for either option depends on how much you spend. If you live a frugal life, and your mortgage is paid off 
, then you will need a lot less money for both the above options, although Option 2 is the one we’re aiming for.
Net Worth question:
Do I calculate our net worth the traditional way, Assets minus Liabilities, do I think of Net Worth in terms of how much passive income we receive or do I do both?
An ideal scenario would be (example)
Expenses =£1,000 a month/Passive Income=£1,000 a month
There’s a long way to go yet!
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{ 9 comments… read them below or add one }
Hi there-its great to think of future scenarios, best of luck, you will get there!
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Ooooh, a subject close to my heart.
Can you not also completely leave the rat race by finding a job that you love? In my head the rat race requires a certain kind of lifestyle linked to a certain kind of heartless and passionless job. If I were a…hmmm…bestselling author, bar owner in Rio de Janiero or an astronaut, I don’t think I’d feel part of the rat race
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Hi Laura
I dont think net worth is an expcialy useful measure. Looking at my own over the last few months I have lost £???s from house values in the UK and gained £???s from the exchange rate and maybe lost £???s from overseas house values. Its all way too fluid to be useful. Income v expenditure is the way to go, although obviously the exchange rate can shoot you out of the water there as well.
Lizzie
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Hmm… well net worth can change from month to month, so you just take your passive + active income, and minus out liabilities (as of the current interest rates/market value) and that’s your net worth for that month.
Mine have been jumping all over the place.
For me, I like the semi-retirement idea. I’d be too bored to retire completely unless I started another mini business on the side.
Fabulously Broke in the City
Just a girl trying to find a balance between being a Shopaholic and a Saver…
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I was giving some thought to just this question over my break. I want to leave the rat race sooner rather than later and need to give some serious thought to how I’m going to achieve it.
I also agree with Jade that if you are doing something you love, it won’t feel like a ‘job’. I’m trying to work that into my new life design. Therefore I guess I’m thinking semi-retirement.
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Can you retire in your 20′s?
It is all I think about!
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I was thinking about this the other day… I plan on putting some retirement property under my belt in the next year. Buy another property 2 years after that… Etc… My goal is to be able to semi-retire (opening my own cozy, restaurant establishment in some mid size, cozy, artsy, uni-downtown establishment) by the time my daughter graduates in 10 years.
Of course, it will take much more planning with a fine-tooth comb, but its a start.
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I love the semi retirement option too, as I feel boredom would set in.
I love the idea of a very small b&b in Portugal – this would work on both fronts
Thanks for all your comments, it seems a subject close to all our hearts.
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I love the b&b idea. You can do as much or as little business as you want during the time of year you want and the expenses would be a tax write off!
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