How much money do you need to quit work?
While it’s brilliant that most of us are living longer and longer, it does make the question of: “Do I have enough money to live the way I want for the rest of my life?” devilishly tricky.
Luckily, these days, that question doesn’t matter as much as it used to. That’s because there’s all sorts of ways to make money that weren’t around 5 or even 3 years ago. It’s also often true that many people don’t need as much money as they thought they did.
Some people are able to phase out of full-time work gradually, cutting down their hours or consulting back to their former (or similar) employers on an ad-hoc basis. If this doesn’t appeal to you (or you’re sick of your job), the ‘gig economy’ is growing rapidly and is a great way to earn a bit extra. Driving for uber or renting out part or your house via Airbnb is only the start, these days you can rent out just about anything and most jobs are available in a freelance capacity.
Many older people are also deciding to start their own businesses - and they’re doing incredibly well. Businesses started by older people are often more successful - why?
Older people tend to have better networks, better access to capital, more experience and be better judges of risk (so less likely to cause businesses to fail through mismanagement). Research from Swinburne University and QUT in 2015 found that 34% of young firms are led by ‘olderpreneurs’ and the average age of an entrepreneur is 45.
And don’t forget that it really is true that more money often doesn’t make you happier. Once you have enough money to live comfortably, research shows that more money on top of this doesn’t generally make you happier.
Using money to buy time is linked to increased happiness. Recent research showing that if you use money to ‘buy time’ for example by outsourcing chores you don’t like doing, it makes you happier than spending it on buying things.