A few months ago, Joe from Retire by 40 published the quiz How Serious Are You About Early Retirement? I took the quiz (BudgetsAreSexy did too!) and found it informative and entertaining. I thought it would be fun to share my answers with you and let you know about the early retirement quiz, if you haven't taken it yet.
Early retirement is a great financial goal to have.
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For us, I don't know when or if we will ever completely stop working, but having the option to is important.
Looking at early retirement as a goal, whether you stop working completely or not, means financial stability is a top priority for you. You just never know what may happen, and that stability is always a great thing to have.
Here are the directions for the quiz: “You need to keep track of your own score for this quiz. The questions are just TRUE/FALSE. You get a point for every TRUE. Then simply put your score in the poll at the end.”
Here’s the quiz:
1. You know your net worth
Yes, I know my net worth!
Tracking your net worth with a platform such as Personal Capital is a great way to stay on track and stay motivated.
2. You have a Roth IRA
3. You have no consumer debt – car, credit card, etc…
We have no debt. We do some travel hacking (learn how to get to Hawaii for less than $25) but we pay off our credit cards every single month.
And, yes, even our RV was paid for with cash.
4. You have a “retire by” date
We have a date, but we are not super strict about it. We could retire right now if we wanted to, but we have chosen to keep working because we love what we do so much.
5. You have a side hustle or two
I have many different streams of income. However, I don't currently have anything outside of my business going on. I think I'll still give myself a point for this because I used to side hustle like crazy 🙂
Related: How To Make Extra Money
6. You have passive income
Yes, I have passive income through affiliate marketing on my blog. This isn't considered 100% passive as I do need to do a little bit of work, but I'm still going to count it.
Plus, I also have retirement accounts that pay dividends.
7. Your investments are worth more than your house
Yes, our investments are worth more than our RV.
8. You have a post retirement plan – volunteer, etc…
We currently live a very exciting life and will probably be doing something quite similar even when we retire.
9. You save 50% of your household income
Yes, we currently save over 90%.
10. You have backup plans
Yes, we do have a backup plan. If things go downhill, then I am all about workamping – volunteering at campgrounds at national parks and state parks in return for a free campsite and electricity 🙂
Bonus point – You cut your own hair
Ha, nope! My hair is my one splurge. I like to have it colored different ways (multiple times a year), and I do get a haircut about once a year.
Early Retirement Quiz Scoring:
- 0-5: Skeptic. Do you believe in early retirement? Perhaps it's not a goal of yours?
- 6-7: Novice. You're on your way to early retirement!
- 8-9: Committed. You'll get to early retirement soon.
- 10+: Driven. Early retirement is definitely on your mind, or you may even already be retired!
I scored 10 points on this early retirement quiz. And, early retirement is definitely something I am aiming for, although it's just the independence that I’m crazy about because I still do love to work.
Now, even if your score wasn’t what you hoped, you can still work towards early retirement. It probably just means that you need to be aware of where you are at and where you want to be. Remember, being aware of your situation is the first step!
What was your early retirement score? Share in the comments and let's start a discussion!
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