Here’s a Realistic Plan for Retirement That You Should Start Now

It’s way more sustainable than aiming for millions

I’ve only started to pay attention to retirement after I turned 40.

It didn’t hit me hard before that. For the longest time, that monthly contribution to the retirement fund felt like the government was trying to steal my money.

By the time I started to feel ‘real’ about retirement, I was in a panic. I don’t have enough money to retire on, far from it.

Thankfully, gone were the days when you were supposed to work one job, pay off a home, and save millions to retire happy.

Modern days retirement involves you being smarter about building multiple passive income streams. And if you start now, you can still design a comfortable retirement life.

The new way to retire

You’ve probably heard of the semi-retirement concept.

Increase income + spend less + work less = semi-retired.

It’s simple and sustainable.

The hardest part of this formula is to increase income.

That’s why you need to start building multiple passive income streams so you don’t have to spend much of your waking time working on it (hence work less).

Building a passive income still involves you being active. But it’s something you only make once and can continue to generate income in the future.

If you choose the type of passive income that you enjoy building, it doesn’t feel like work.

Phil Knight from Shoe Dog built Nike because he wondered how to play all day instead of work.

Think about your skills and what you love doing, then start building multiple passive income streams that will allow you to work less sooner.

Lifestyle change

When I was younger, I wanted to climb the corporate ladder, thinking if I were to get to a senior position making heaps of money, I would have my life all sorted out.

But as I matured, I began to notice I had absolutely no desire to be the next CEO, not even as a senior manager leading a team.

I only want to work a few hours a day, spend time with my dog, go to the beach, do yoga and pursue my creative endeavours.

My friend’s neighbour is an 82 years old lady, who lives in a small apartment with her dog, teaches yoga at YMCA a few hours a week, rides a bike to the local beach when the weather is warm, then spends her time connecting with younger neighbours to keep herself sharp and interesting.

Her friends love her. She has so much wisdom, and she looks young and healthy. She doesn’t look her age.

I love to be like that when I am 82.

Digital assets

When I realized the life I wanted was very simple. I know I don’t need millions to retire on.

And that takes off a lot of my stress and anxiety.

I need to focus on building a passive income to cover my simple lifestyle.

That’s a few thousand dollars a month, less than 6-figures a year. I don’t need a million to sustain my lifestyle.

And how to do that?

By building digital assets.

Entrepreneur Naval Ravikant famously tweeted in 2018:

The internet has massively broadened the possible space of careers. Most people haven’t figured this out yet.

Code and media are permissionless leverage. They’re the leverage behind the newly rich. You can create software and media that works for you while you sleep.

The internet is a gold mine.

With technology evolving, everyone should build some form of passive income utilizing the internet.

These days, you don’t need to learn how to code to build a website. You don’t need to go to a design school to learn how to design (Thanks, Canva). You don’t need to spend 5-figures to get a master’s degree.

All you need is a laptop, your willingness, and some thinking on how you want to utilize your skill to solve problems for others. Then you are in business.

My passive income streams

Here’s what I am doing to build my passive income.

#1 Rental Income: I entered the market early and secured a small condo. With the rental demand skyrocketing in Toronto, I am getting a good return. If you don’t have a property, consider cutting a deal with your landlord to manage an Airbnb for them.

One of my neighbours is doing precisely that. His landlord is a seasoned entrepreneur with several businesses. No doubt a busy man.

So he worked out a deal. He pays less for rent but helps his landlord to rent out the basement as an Airbnb.

He gets a commission for all the management, which only takes a little of his time since he lives there anyway.

And his landlord gets extra income from doing nothing. It’s a win-win.

#2 Index fund and ETFs: This is my long-term investment, and I don’t do anything except to dollar cost average and let it compound. Despite some challenging times in the market in the previous months, I am getting about 9% of return, double the rate a bank can offer on their term deposit.

#3 Dividend stocks: It’s bringing in a couple of hundred dollars every few months, but this is an area of interest, and I hope to increase my dividends earnings as I dive into it more.

#4 Etsy printables: Etsy is no longer just the place for handmade, vintage crafts. The platform has set up many opportunities for digital creators.

It’s early days (I opened my store 3 months ago), so I am still experimenting, but I’ve made 90 sales already. Not bad for a ‘start-up’ and spent only a few hours a week working on it.

#5 Writing: I use Medium to help build my audiences for potential opportunities to create digital products. And, of course, the Medium Partner Program is a nice little bonus.

#6 Affiliate marketing: I’ve never thought I’d do this, but since starting to write on Medium, I’ve built confidence in starting my blog and getting more active in affiliate marketing. I’ve already seen a few sales through my only affiliate marketing activity.

These are the passive income streams I am working on outside of my own business.

Single income source is no longer something you should rely on. Start taking action and work towards a more sustainable plan so you can enjoy a more fulfilling and stress-free retirement life.