Surprised that nobody has mentioned ERE (Early Retirement Extreme). Claims to be possible in five years. Here's the gyst of it:
"Financial Independence through significantly Living Below Your Means (LBYM)
This is a key part of a web approach. Implementing ERE can lead to a significant reduction in living expenses. Combined with a median income, this results in a high savings rate. Since expenses have been reduced, financial independence is achieved in 5-10 years depending on income and expenses. ERE uses conventional retirement planning calculations except that typical savings rates are greater than 60%, compared with the normally-recommended consumer savings rate of 10-20%.
Every part of one's lifestyle can be analyzed this way, but the most substantial gains come from optimizing the top three most expensive parts of the budget (see Pareto principle). These are usually housing, food, and transportation. Rather than buying these items separately, they should be selected as a holistic shelter-food-transport system.
A typical, systems-based solution would be a small apartment or cash-bought house
within walking distance of a market that sells healthful bulk ingredients
and within walking distance of work and other amenities"
http://earlyretirementextreme.com/wi...What_is_ERE%3F
"In a home I need walls, roof, windows, and a door that can be opened and closed. I also need a place to cook, a place to eat, a place to sleep, a place for a guest, and a place to write. More space is not better. More space means a bigger house. A bigger house means more hassle, more maintenance, more work to pay for rent, mortgage, taxes, and less time for living. More space also attracts more stuff which eventually means less space. The amount of actual space in a room depends more on personal tolerance for clutter than anything else. Some things make life easier, but more things do not make life more easy. More things mean more things that can break down and more time spent fixing or replacing them. Comfort is freedom and independence. Comfort is having the sweat glands and metabolic tolerance to deal with heat and cold. It is not central heating or air conditioning which may fail or be unavailable. It is not plushy seats but a healthy back. Luxury is not expensive things. It is a healthy and capable body that moves with ease with no restraints because something is too heavy, too far, too hard, or too much. It is a content and capable mind that can think critically, solve problems, and form opinions of its own.
Success is having everything you need and doing everything you want. It is not doing everything you need to have everything you want. If so then you do not own your things, instead your things own you. I do not need to own a particular kind of vehicle. I need to go from A to B. I do not need fancy steak dinners, rare ingredients, or someone else to prepare my meals whether it is a pizza parlor, a chef, or an industrial food preprocessor. I need food to live. Food to fuel my body and brain. Luxury is not eating at 5 five star restaurants. Luxury is being able to appreciate any food. Comfort is eating the right kind and the right amount of food. Not whatever I want. Eating and moving right prevents diseases, pains, and lack of functionality. I am what I eat and I look what I do. Everybody is. It is the physiological equivalent of integrity. To say what I mean and mean what I say. This too makes life more comfortable. Money is opportunity. Opportunity is power. Power is freedom. And freedom means responsibility. Without responsibility, eventually there is no freedom, no power, no opportunities, and no money. More importantly, freedom is more than power. Power is more than opportunity. Opportunity is more than money. And money is more than something that just buys stuff. It is simple to understand but hard to remember, but do remember this if nothing else."
http://earlyretirementextreme.com/
Definately a mind shift.
Great thread so far. I think it helps to define retirement as "Now I can do whatever I want" keep working, return to school and choose an entirely different vocation, volunteer, pursue hobbies, and so on, rather than, "I have enough money to never work again". More technically, it might be your investment nest egg now generates enough money per month to pay your current monthly expenses.
Wish I had read about ERE this in my twenties. Five years of extreme sacrifice at that age would not have changed my life at all except for the better. Even if I didn't fully go for it, it would have helped me pick a better career, home, vehicular choice(s) and hobbies. Could have retired after fifteen.