The other night I was pondering what actually classified as retirement. We all think of retirement as falling towards the end of one’s life. You work for a while, save up enough money, then use those savings to enjoy the latter part of your life.
But what if you don’t want to wait until you are 65 or older to retire? Say you want to save up money for 15 years, take 5 years off and then re-enter the workforce. Is this retirement?
I didn’t know the answer, so I did what everyone does nowadays to find such an answer. I Googled it. Webster’s Dictionary defines retirement as the following:
The act of ending your working or professional career; the period after you have permanently stopped your job or profession.
So if you did decide to take 5 years off during the middle of your working career I guess it would be classified as a hiatus. Regardless of when you decide to retire, there are a few things I believe retirement truly is.
- When one’s passive income is greater than one’s expenses.
Your investments, rental properties, royalties or whatever revenue generating sources you have other than trading your time for money are greater than your expenses.
- Finding ways to spend your time with people you love and doing the things you love.
You can have all the money in the world, but if you don’t have ways to enjoy it or enjoy your time then it has no purpose.
- Creating your very own legacy.
Volunteering, raising money for a worthy cause, instilling wisdom in the minds of younger generations. Creating a legacy to be remembered by is the ultimate goal of success.
Budget Smart, Invest Wise