Lucas Graham
Is your dream to retire early?
If so, this article is for you!
Early retirement isn’t a matter of luck or inheritance. It’s a result of specific habits and behaviours consistently practiced throughout life.
Psychologists have studied early retirees and identified several common practices they share.
These habits range from financial discipline to maintaining a positive mindset, and they are not necessarily difficult to adopt.
In this article, I’ll share with you the top 9 daily habits that successful early retirees follow according to psychological research.
These habits won’t just help you retire before everyone else, they will allow you to live the rest of your life on your terms!
1) They prioritize savings
As simple as it sounds, one of the most common habits of early retirees is the habit of saving.
And it’s not just about saving a portion of their income, it’s about making savings a top priority.
Often, these individuals start saving from an early age, understanding the power of compound interest.
They might have a fixed percentage of their income that they set aside every month, religiously, without fail.
They might forego certain luxuries or conveniences in order to save more.
Maybe they choose to cook at home instead of eating out, or maybe they choose a more affordable car over a luxury model.
This habit extends beyond just their personal lives.
Many early retirees are known for their frugality in business expenses as well. They understand that every penny saved is a penny earned.
2) They set clear goals
Another habit of people who retire early is goal setting.
These individuals have a clear vision of what they want their retirement to look like, and they set specific, measurable, achievable, relevant, and time-bound (SMART) goals to get there.
Having a clear goal gives them a target to aim for. It helps them stay focused and motivated, even when faced with challenges or setbacks.
They might have a goal to save a certain amount by a certain age, or to start a business that generates a specific amount of passive income.
These goals aren’t just financial either.
They might include health goals, travel goals, or personal development goals that contribute to their overall vision of their desired retirement lifestyle.
Early retirees not only set goals, but they also create detailed plans to achieve them.
They then review and adjust their plans as necessary to stay on track towards early retirement.
3) They practice patience
In a world of instant gratification, early retirees swim against the current.
They understand that building a nest egg large enough for early retirement is not a sprint, but a marathon.
While others might rush into high-risk investments in hopes of quick gains, early retirees often prefer steady, long-term investments.
They aren’t swayed by the latest trends or quick money-making schemes.
They also understand that success doesn’t come overnight.
They are willing to wait, sometimes for many years, to see the fruits of their investments and savings.
4) They face financial fears head-on
Let’s be real. Money can be terrifying.
The thought of losing what you have, the fear of not having enough, the anxiety over making the wrong investment – it’s enough to keep anyone up at night.
But people who retire early don’t shy away from these fears.
They face them head-on.
They educate themselves about finances and investments, even if it’s complicated and overwhelming.
They make tough decisions, even if it means potentially making mistakes.
They take calculated risks, even if it’s scary.
Because they understand that avoiding these fears won’t make them go away.
In fact, studies show that avoidance leads to bigger financial problems down the line.
That’s why they choose to confront their financial fears.
They seek advice, learn from their mistakes, and keep pushing forward, because they know that’s the only way to achieve their goal of early retirement.
5) They show kindness to their future selves
Retiring early isn’t just about financial decisions.
It’s also about self-care and compassion towards one’s future self.
People who retire early often make choices today that benefit their well-being tomorrow.
They understand that their future quality of life depends on the decisions they make now.
This might involve:
- Making healthier food choices
- Staying physically active
- Taking time to relax and recharge
They know that health is wealth and that taking care of their physical and mental health now will pay dividends in their retirement years.
They also invest in lifelong learning, knowing that a sharp mind is just as important as a healthy body.
They read, learn new skills, and stay curious about the world, ensuring they have a wealth of knowledge and experiences to draw on in their retirement.
Ultimately, they show kindness to their future selves by making choices that ensure they can enjoy their retirement years to the fullest.
6) They find joy in simple things
Early retirees aren’t necessarily living extravagant lifestyles. In fact, many find joy in the simple things in life.
They might enjoy a morning walk in the park, a homemade meal, or a good book.
They might prefer spending time with loved ones over expensive outings or luxury vacations.
They understand that happiness doesn’t come from material possessions or high-flying lifestyles. Instead, they find contentment in everyday moments and small pleasures.
And research backs this up.
Studies have found that people gain more happiness through experiences than through acquiring material possessions.
This attitude helps early retirees keep their expenses low and their savings rate high.
But more than that, it allows them to truly enjoy life both before and during retirement.
7) They embrace the small wins
Who said finance has to be all serious? People who retire early often have a great sense of humor and a knack for finding joy in the journey.
They celebrate small wins and milestones along the way to their big goal. Maybe it’s:
- Reaching a savings target
- Making a profitable investment
- Simply sticking to their budget for the month
Why is this important?
These mini celebrations keep the journey enjoyable and motivate you to keep going.
Psychology shows that acknowledging small wins create a positive feedback loop in your brain that fuels motivation.
So, whether it’s doing a happy dance when their stocks go up or treating themselves to a favorite dessert after a month of frugal living, they know how to keep things fun and light-hearted.
8) They cut out excuses
Here’s some tough love: people who retire early don’t make excuses. They understand that excuses won’t get them any closer to their goals.
Running out of money before the end of the month? Not an excuse – they find ways to cut back or earn more.
Don’t understand investing? Not an excuse – they educate themselves or seek professional advice.
They don’t let their circumstances, lack of knowledge, or fear hold them back.
They take full responsibility for their financial future and do whatever it takes to secure it.
Sure, it’s hard. Yes, it takes sacrifice.
But early retirees know that the only way to achieve their goals is to stop making excuses and start taking action.
So, if you’re serious about retiring early, it’s time to cut the excuses and get to work.
Your future self will thank you for it.
9) They remain consistent
If there’s one thing you should take away from this, it’s this: consistency is key.
People who achieve early retirement understand that it’s not about making drastic changes overnight. Instead, it’s about making small, consistent efforts every single day.
Whether it’s saving a certain amount of money each month, investing regularly, or consistently learning about finance, they understand the power of steady progress over time.
They know that consistency beats intensity. It’s not about saving half your income for a few months then burning out.
It’s about finding a sustainable saving and investing plan and sticking to it for years.
So remember, consistency is the secret ingredient to achieving early retirement.
Start small, keep going, and watch as your efforts compound over time.
In conclusion
As you can see, the journey to early retirement isn’t about making dramatic life changes overnight.
It’s about the small, consistent steps you take daily towards your financial independence.
Moreover achieving early retirement isn’t just about financial planning—it’s also about cultivating the right mindset and habits.
By incorporating these daily practices, grounded in psychological principles, you’ll be well on your way to early retirement and living life on your own terms.
