In this blog article we check out 8 habits of a new generation of millionaire entrepreneurs who give up work and retire in their 30s and 40s. Let’s dig down into the nitty gritty of their routines and traits.

1.The Eternal Optimist (A millionaire who retires young and started humbly)

Positive thinking is a common trait in millionaires who retire in their 30s and 40s. They are driven by a sense of destiny and belief that they can reach their dreams. However, they are pragmatic and solution focused entrepreneurs. The typical young millionaire strategically prepares for the future with contingency planning in case projects fail or hit a snag. It is about being realistic but at the same time having the optimism to believe you will experience success and do the things most people only dream about. 

2. They value the happiness of living a life they love

An attitude for gratitude is a common phrase bounding around these days, but it isn’t woolly and idealistic. Money is not the end goal, they are driven by a desire to have enough wealth to be free to do the things they love with the people they love. Time is of the essence. To have lots of money but very little time is not the pursuit of this new breed of entrepreneur. It is about achieving optimum happiness from the wealth that you create.

Once you achieve that level of happiness, it may be that you are happy with the income level that you have achieved. Money is a key to unlocking freedom and time to follow your dreams. It is not like the old world of working yourself into the ground 6 or 7 days a week, so that you barely see your family or friends. Money is the remover of obstacles to unlock free time. 

3. They downsize and move to places where life is less expensive

Packing up and leaving the Big Smoke to move to places where life is cheaper is a common route for the downsizing generation of young entrepreneurs. Another trend is for young millionaires to earn money from their home economy e.g. a developed economy like the US, UK, Australia, EU block etc and then reside and spend their income in a developing country such as Thailand, India, Philippines, Indonesia and so on. That way they are supporting the economy of the emerging economies, so there are altruistic influences as well as getting more bang for your buck. 

It also reflects that people are getting tired of the stress and strain of the rat race in the big cities. Moving to another country but operating your business from your country of origin is a common trend. With this kind of lifestyle you have the amazing opportunity to live in another culture as well as maintain a high standard of living on a lower budget. 

4. Money free worries after retiring young

A common trend in those who retire in their 30s and 40s is that they are not dwelling on the subject of money. They have achieved a level of wealth via passive incomes, saving and investing and frankly they are well off enough to not have to think so much about it.  Achieving a state of financial independence, they have generated enough passive income to cover all of their needs. This brings great peace, wellbeing and contentment to their lives.

Also, after people retire young they begin to realise how money is not their priority any more as they have carved out a life that is financially independent. Reaching this state of freedom means they have more time to pursue hobbies, travel and enjoy their lives with their families instead of being slaves to the Corporate Wheel.

5. Monitoring their finances

Though young retirees are financially free, they still practise good housekeeping with their money. This is usually achieved by calculating their net worth and then long term planning how much disposable income they have each year. This strategic planning and budgeting means they can enjoy a secure future with a regular flow of income. 

6. They practise austerity in their lives!

Young millionaires who have retired also embrace austerity in their lives. Sustainable living is in fashion and rather than buying a new sports car every year, they look for bargains and make their personal possessions last longer. Rather than eating out in fancy restaurants on a regular basis, they tend to eat at home and save their money for a rainy day. This is a total contrast to the times such as the 1980s when it was all about flaunting your wealth, particularly seen in America, and in the UK with the Yuppie culture. 

It is more IKEA than Gucci and in terms of weekly spending, it is about maintaining a food budget. That way all the money they save from eating reasonably priced goods can lay the pathway to retiring young in their 30s or 40s. 

7. They save money on housing!

Rather than buying a 4-bedroom house, this new breed of entrepreneurs choose to live in a one bedroom flat. Then they use the money they saved to buy properties which they then rent out to others. This in itself brings in a passive income from the rent. Though they have the money to buy bigger properties, investing in real estate to rent out is a guaranteed regular flow of money to build their savings for early retirement. Modest living now means an earlier exit from the rat race and you can live in a bigger property when you stop working as you have accumulated wealth in being a landlord.

8. Always on the lookout for ways to earn more

Despite what I said about spending less and saving more, this new class of entrepreneurs is always looking for ways of earning more income. Many will continue to work and also have side businesses which increase their net worth over time. Earning more money is more of a priority than spending less because the more money they make from side businesses means they can invest more in ventures that build their passive income streams over time. 

One great example of an entrepreneur with this mentality is Grant Sabatier. He believes that you can only reduce your spending to a certain level and that earning more income is the key to more investments. He wrote about this in his book called Financial Freedom: A Proven Path to All the Money You Will Ever Need. 

So we have looked at people retiring in their 30s and 40s but it is not exclusive to these age groups. You could be in your 50s and 60s and still adopt these tips to help increase your income streams and have more freedom to do the things you love in life!

Let’s do this!

BE THE CHANGE!