top of page
  • Writer's pictureDamon Smith

The Early Bird Gets the Beach: Sabrina's Journey to Retiring at 40

Early Bird

Picture this: turquoise waters lapping at sugar-white sand, palm trees swaying in the breeze, and a delicious cocktail in hand. Sounds heavenly, right? Well, that was my reality at 40, not because she won the lottery, but because she, Sabrina, a regular gal with a regular job, retired early.

Sabrina wasn't born with a silver spoon, and the idea of working until her golden years didn't spark joy. So, at 25, she embarked on a quest to escape the 9-to-5 grind. Was it easy? Absolutely not. But with commitment, strategy, and a sprinkle of sacrifice, she traded in spreadsheets for seashells by 40.

Ready to join the early retirement club? Buckle up, because she spills the beans about her journey.

Step 1: Charting the Course - Defining Your Dream in Vivid Detail

Remember that vision board you made as a kid, filled with dream houses and exotic vacations? It's time to dust it off because defining your early retirement dream is just as important as the financial nitty-gritty. Here's how to dive deeper:

1. Beyond the Beach: Sure, the beach life might be your initial picture, but dig deeper. What truly excites you? Do you crave the freedom to travel the world, pursue a creative passion full-time, or volunteer for a cause close to your heart? Be specific!

2. Detail the Daydream: Close your eyes and paint a vivid picture of your ideal early retirement day. What time do you wake up? What activities fill your day? Who are you with? The more details you capture, the more real and tangible your dream becomes.

3. Quantify Your Desires: Don't just dream of traveling the world; estimate how much it might cost. Research your desired locations, accommodation types, and activities. This helps turn your dream into a concrete financial goal.

4. Create a Vision Board 2.0: Now, it's time to visualize your dreams. Gather pictures, quotes, or anything that represents your ideal retirement life. Pin them up somewhere you'll see them daily, like a mirror or your desk. This serves as a constant reminder of your "why" and fuels your motivation.

5. Share Your Vision: Talking about your dreams holds power. Share your vision board and aspirations with trusted friends, family, or even a financial advisor. Their support and encouragement can be invaluable on your journey.

By taking these steps, you move beyond a vague desire for early retirement and craft a compelling vision that will guide your decisions and keep you focused throughout your journey.

Step 2: The Money Map - Budgeting Like a Boss (with Actionable Tips!)

Step 2 is all about understanding your current financial situation and creating a roadmap to reach your early retirement goals. Here's how to get granular with your budgeting:

1. Track Every Penny: Awareness is key. Use budgeting apps, spreadsheets, or even a simple notebook to track every single expense for a month. This includes everything from rent and groceries to your daily coffee and weekend entertainment.

2. Categorize Your Spending: Once you have a month's worth of data, categorize your expenses. Common categories include housing, transportation, groceries, utilities, entertainment, debt payments, and savings/investments.

3. Identify Your "Leakage": Now comes the crucial part - analyzing your spending. Look for areas where you can cut back or eliminate unnecessary expenses. Are there subscriptions you don't use? Can you cook more meals at home instead of eating out? Every dollar saved is a dollar closer to your early retirement dream.

4. Prioritize Needs vs. Wants: Differentiate between needs (essentials like housing and food) and wants (desires like cable TV or expensive coffee habits). Prioritize allocating your income towards needs first, leaving room for calculated "wants" that truly add value to your life.

5. Embrace Frugal Living: Frugal living doesn't mean deprivation; it's about being mindful and resourceful. Explore cheaper alternatives, like using public transportation instead of owning a car, borrowing books from the library instead of buying them, or hosting potlucks with friends instead of expensive dinners out.

6. Set Realistic Savings Goals: Don't overwhelm yourself with unrealistic goals. Start with a small, achievable savings percentage and gradually increase it as your income or spending habits allow. Consistency is key!

7. Automate Savings: Set up automatic transfers from your checking account to your savings or investment accounts. This removes the temptation to spend that money and ensures you stay on track with your goals.

Bonus Tip: Consider using the 50/30/20 rule as a framework. Allocate 50% of your income towards needs, 30% towards wants, and 20% towards savings and debt repayment. This is a flexible guideline, and you can adjust the percentages based on your specific circumstances.

Remember, budgeting is a continuous process. Regularly review your spending, adjust your plan as needed, and celebrate your progress along the way. By taking control of your finances, you're laying the foundation for your early retirement dream.

Step 3: The Investment Compass - Making Your Money Work for You (A Beginner's Guide)

Investing might seem like a complex world reserved for the financially savvy, but even beginners can navigate it with the right guidance. Here's a breakdown of Step 3, equipping you with the foundational knowledge to start your investment journey towards early retirement:

1. Understanding the Basics:

  • What is investing? Simply put, it's using your money to buy assets that have the potential to grow over time, offering potentially higher returns compared to simply saving in a traditional bank account.

  • Types of investments: There are various investment options, each with its own risk-reward profile. Some common ones include:

  • Stocks: Ownership shares in companies, offering potential for capital appreciation (increase in share price) and dividend income (a portion of the company's profits distributed to shareholders).

  • Bonds: Loans you make to governments or corporations, generally offering lower risk but also lower potential returns compared to stocks.

  • Mutual funds and ETFs: These are professionally managed baskets of stocks or bonds, offering diversification and potentially lower fees compared to buying individual securities.

2. Risk Tolerance:

  • Every investment carries some degree of risk, meaning the possibility of losing money. Understanding your risk tolerance is crucial. Are you comfortable with potentially higher returns but also higher chances of losing money (e.g., stocks)? Or do you prioritize stability and are willing to accept lower potential returns (e.g., bonds)?

3. Asset Allocation:

  • Diversification is key to managing risk. Don't put all your eggs in one basket! Spread your investments across different asset classes (e.g., stocks, bonds, real estate) to mitigate risk and achieve a balance that aligns with your risk tolerance and time horizon (time until you need the money).

4. Starting Small:

  • You don't need a hefty sum to begin investing. Many platforms offer fractional shares, allowing you to purchase a portion of a stock instead of the entire share. Start small, get comfortable with the process, and gradually increase your investments as your knowledge and comfort level grow.

5. Seek Guidance:

  • While you can start with the basics, there's always more to learn. Consider consulting a financial advisor for personalized advice based on your specific financial goals and risk tolerance.

Remember: Investing is a long-term strategy. Don't be discouraged by market fluctuations in the short term. Stay focused on your long-term goals, rebalance your portfolio periodically, and be patient. With time and disciplined investing, your money can work for you and propel you closer to your early retirement dream.

Step 4: The Hustle Shuffle - Side Hustles for Extra Dough (Beyond the Usual Suspects)

While traditional side hustles like rideshare driving or freelance writing can be great options, they're not the only avenues to explore. Here's a deeper dive into Step 4, showcasing creative and potentially lucrative side hustles you might not have considered:

1. Leverage Your Skills and Passions:

  • Monetize your hobbies: Do you have a talent for baking, photography, or crafting? Consider selling your creations online through platforms like Etsy or at local craft fairs.

  • Offer consulting services: If you have expertise in a specific field, like marketing, finance, or project management, offer consulting services to businesses or individuals on a freelance basis.

  • Teach online: Share your knowledge and expertise by teaching online courses through platforms like Udemy or Skillshare.

2. Embrace the Sharing Economy:

  • Rent out unused space: Do you have a spare room, driveway, or storage unit? Rent it out on platforms like Airbnb, Neighbor, or Spacer to generate passive income.

  • Share your car: If you have a car that sits idle most of the time, consider listing it on car-sharing platforms like Turo or Getaround.

3. Explore the Digital Landscape:

  • Become a virtual assistant: Offer administrative, technical, or creative assistance to clients remotely.

  • Start a blog or YouTube channel: Share your knowledge, passions, or experiences through a blog or YouTube channel and monetize it through advertising, affiliate marketing, or selling your own products or services.

  • Do online microtasks: Websites like Amazon Mechanical Turk offer small, bite-sized tasks that you can complete for micro-payments. While the pay is low per task, it can add up over time.

4. Think Local and Niche:

  • Offer local services: Do you have a knack for handyman work, pet sitting, or house cleaning? Advertise your services in your local community through online platforms, flyers, or word-of-mouth.

  • Become a tutor or babysitter: Share your knowledge or provide childcare services in your local area.

5. Remember:

  • Research and due diligence: Before starting any side hustle, research the market, understand the legalities involved, and ensure it aligns with your skills and interests.

  • Start small and scale gradually: Don't overwhelm yourself with too many side hustles at once. Start with one or two that fit your schedule and gradually expand as you gain experience and confidence.

  • Be mindful of taxes: Remember to set aside money for taxes on your side hustle income.

By exploring these diverse options and leveraging your unique skills and interests, you can unlock the potential of side hustles to accelerate your journey towards early retirement.

Step 5: The Patience Potion - Mastering the Marathon Mindset

The road to early retirement is a marathon, not a sprint. There will be challenges, setbacks, and moments of doubt along the way. Step 5 equips you with the mental fortitude and strategies to stay motivated and navigate the inevitable bumps in the road:

1. Anticipate Obstacles:

  • Recognize that setbacks are inevitable. Unexpected expenses, market fluctuations, or changes in your personal life can throw your plans off track. Don't let these discourage you. Instead, prepare mentally and financially for potential hurdles.

2. Embrace Delayed Gratification:

  • Early retirement requires sacrificing some immediate desires for the long-term goal. There will be times when you might have to say no to impulse purchases or resist lifestyle inflation (increasing your spending as your income rises) to stay on track.

3. Celebrate Milestones:

  • Reaching your goals, big or small, deserves recognition. Celebrate your milestones, whether it's saving a specific amount, achieving a side hustle income target, or successfully sticking to your budget for a month. Celebrating keeps you motivated and reinforces positive behaviors.

4. Build a Support System:

  • Surround yourself with positive and like-minded individuals who understand and support your early retirement goals. Share your journey with them, seek their encouragement, and learn from their experiences.

5. Practice Self-Care:

  • The journey to early retirement shouldn't come at the expense of your well-being. Prioritize self-care practices like healthy eating, regular exercise, and adequate sleep. A balanced and healthy lifestyle fuels your motivation and resilience.

6. Embrace Flexibility:

  • Life is dynamic, and so should your plan be. Be prepared to adjust your strategies as needed. If your income changes, unexpected expenses arise, or your circumstances evolve, don't be afraid to adapt your budget, investment strategy, or side hustle approach.

7. Stay Focused on Your "Why":

  • Whenever you feel discouraged or tempted to veer off course, remember your "why". Revisit your vision board, remind yourself of the life you're working towards, and reignite your passion for your early retirement dream.

Remember, the key to success is not the absence of challenges, but your ability to navigate them with resilience, a positive mindset, and unwavering focus on your ultimate goal. By incorporating these strategies into your approach, you'll be well-equipped to persevere through the journey and unlock the door to your early retirement dream.

Conclusion: Freedom Awaits - Take the First Step Today!

The path to early retirement isn't a walk in the park, but it's a journey filled with immense personal growth and the potential for a life less ordinary. By defining your dream, taking control of your finances, and embracing the power of side hustles and perseverance, you too can unlock the door to your own slice of paradise.

Remember, this is just a roadmap, not a rigid script. Tailor the strategies to your unique situation, stay true to your values, and never lose sight of your "why". The most important step? Start today. 

Take action, commit to your goals, and watch your early retirement dream gradually transform into a beautiful reality. The sun, sand, and freedom you envision are waiting for you – are you ready to embark on the journey?


The information provided in this article is for informational purposes only and should not be considered financial advice. It is recommended that you consult with a qualified financial advisor before making any investment decisions or implementing any financial strategies.

This article does not guarantee the achievement of early retirement or any specific financial outcome. Individual results may vary depending on various factors, including personal financial circumstances, investment performance, and market conditions.


bottom of page