Some people are on the 10-year plan to early retirement

Some people are on the 10-year plan to early retirementSome people are on the 10-year plan to early retirementRaise your hand if youve ever slammed yourself in the forehead with your hand after realizing that something your parents told you years ago welches, strangely enough, right? Or, full of wisdom?Ive seemed to do that quite a bit as Ive gotten older.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moreI welches fortunate enough to have been raised in a stable and loving family. Ivewritten about this beforeand dont hide this fact, nor do I apologize for its effect on myability to retire early.The one thing that Ive always remembered was something my dad told me off the cuff. At the time, of course, I didnt truly understand its significance.His words went something like thisSome people are on the 10-year planThinking back, I remember listening to those words. I mean, I knew what they meant, and while I might have harbored an inkling of interest,they made no real impact on my outlook.After all, this was shortly after I graduated from college. After all those years of working shit jobs loading peoples cars with groceries, I was finally making money.You know, real money. Professional money in thecorporate world.And at that time, I wanted to damn well spend it. I was on the crest of going from earning just enough to fund my legit expensesand nothing moreto earning way more than I actually needed. I had an excess of cash.And, it was kinda cool. I could splurge when I wanted to. If I saw something I liked, I bought it (to include a pair of $220 Oakley sunglasses that I inadvertently donated to the Pacific Ocean off the coast of Puerto Vallarta, Mexico while slamming around the waves on a jet ski) years later.Who wanted to stop having all that fun and instead save cash? Sure, I could retire in 10 years if I did nothing but save money, but man, that didnt sound like fun.After all, I was finally in the position to have some of that fun.Finally.What is the 10-year plan?The 10-year plan isnt built for everyone. If youre working a low-income job, then 10 years is probably fairly ambitious (but, Ive heard of people who live extremely frugal on a low salary). Dont count yourself out if you arent working ininformation technologyor any other high-income field.The tenants of the 10-year plan are fairly straightforwardYouve prioritizedsaving moneyover spending itYou are prepared to live a decade of your life during theaccumulation phase saving virtually every penny (within reason, of course)Saying No to weekly happy hours with coworkers will become the norm season tickets to a sporting event probably wont happenAfter 10 years, youll quit your damn job and live the rest of your life in pure freedom buy those season tickets nowMore or less, you are sacrificing 10 years of your life by living frugally so you can plow through the rest of your life without having to worry about commutes or performance reviews (except for maybe yourearly retirement performance review).This is like delayed gratification to the max. But, the payoff is better than anything imaginableif you dont like working a traditional job, that is.In a round-about way, I joined the 10-year planbut lateIt took about 14 years, total, for me to retire early. I met my wife and we got married in 2014, and the combined salaries definitely helped. I wouldnt be retired right now if we werent married.I took several key steps to making the 10-year plan work for me.Step 1 I acknowledged my awesome lifeIf you havent had to struggle much in your life, dont be a jerk and ignore it. Ive found that it helps to normalize our expectations when we acknowledge to ourselves (as well as to others) how fortunate we are to have been born into a warm and loving family with a solid support structure and active/involved parents.But, dont think I chalk all this up to privilege. Idont play that game.Still, it hel ps us to realize the world isnt always as rosy for others as it has been for us. Though weve worked hard for our success,other people have worked harder for the same success. Much harder.Step 2 I didnt confuse income with wealthYou make a lot of money. Good for you. Its definitely awesome bringing home a lot of cash, but all that cash also has a way of lulling us privileged folks into a false sense of security if we dont use it right.High-income debt, anyone?Vacation homes, expensive dinners, big homes and shopping for designer veggies in costly grocery stores all help to diminish our ability to build serious wealth.When wethinkwere rich, schwimmbad things start to happen.And, make no mistake about itA high income does not magically set us up for early retirement. However A high income,when used in a smart way, can.Step 3 I didnt just save money I investedThe 10-year plan doesnt work if all were doing is keeping our money in a checking or savings account.Here is the thing about savi ng money Saving money haslittle to do with getting rich. Its such a small component of the larger picture of building wealth that its just one of those assumed techniques that everybody uses to build wealth.Hardly even worth mentioning.Of course, spending money is a one-way street to becoming poor (aside from smart investments, of course). If you arent spending money, you might be saving. Okay, good. Saving is good, but saving money doesnt buildseriouswealth.The act of saving money wont, in and of itself, make anyone rich.Ordering water instead of soda or beer at restaurants might save you a few hundred over the course of a year. But lets face it A few hundred isnt life-changing money. Those extra benjamins (alone) have no business convincing you to hang up your hat in corporate America.Wealth comes from a very different sourceInvestments. Here, take a look at apretty graphthat puts in chart form what little effect saving money has over your household wealth. I warn you, however, th at there are a bunch of sleep-inducing financial buzzwords that permeate that post. You know, things like market revaluation and consumer durable investments.Its not about how much money we have. Wealth is a direct byproduct ofwhat we do with that money. ItsTHISthat enables early retirement.Step 4 I understand my purpose in lifeWhether you work a traditional job or not, are retired, self-employed or justvagabondaround the world in search of enlightenment, we all have a purpose.Truly, we do. Each and every one of us has a purpose. I believe that.But,heres the kicker Though each of us has a purpose, I also believe that most of us dont have any idea what that purpose is. Or, at least a clear understanding of that purpose. We might have one of those inklings. But short of that, the majority of the population probably couldnt recite their lifes purpose if we gave them 10 minutes to think it over.This isnt meant to criticize. Instead, Im encouraging you to reflect. To think about what giv es your life meaning and understand your purpose as deeply and clearly as possible. This shouldnt take any research on your part. This isnt a science project or book report. This is life. You.If you couldnt tell me your lifes purpose in, say, under a minute, spend five minutes and figure out how to make that happen. Jot down notes if you need. Do whatever it takes toUnderstand what your purpose is, andUnderstand it well enough to recite it quickly and clearlyBuzzwords need not apply.Step 5 I was persistent and didnt give upThe previous four steps wont do much good if you lose your motivation and quitbuilding wealthsix months after you start because things just got too boring.If you revert back to spending the majority of what you earn, nobodys retiring early.Starting is great. We cant get to the finish line if we never start. But, we also arent getting to the finish line if we stop midway through, either. Keep yourself motivated by breaking down your goals intosmaller components tha t are relatively easy to achieve.Then, achieve each smaller goal and move to the next.And, reward yourself along the way. These rewards shouldnt cost a lot of money, of course. A $10,000 vacation to Fiji isnt the best reward if your goal is to retire early. But, picking up tickets for opening day at the ballpark might be.So, Im curious What wisdom did your folks impart upon you that, although you promptly ignored it at the time, you now understand was spot-on accurate?This article first appeared on Thinksaveretire.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know your social class in the first seven words you say, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people