Personal Finance

I'm in my early 40s and am almost a millionaire - I used to kick myself for not having more money until I made these changes

Rich Duprey

Published: November 17, 2024 6:55 pm

You’ve heard the saying, “it’s not the destination, but the journey that’s important.” It is important to remind ourselves of that as we pursue our goal of having a comfortable retirement.

Certainly as we start on our journey of financial independence and retiring early, we are simultaneously consumed with saving money and making the best investment choices. We live below our means, kick ourselves for not buying the perfect stocks (or selling them too early), and keep grinding out our plan.

Yet at some point, we may need to come to the realization that we’ve done enough. Sure, we’re not suddenly going to go crazy with our spending and return to our previous profligate ways. Yet we need to step back and say, wait a minute! I’m going to retire a millionaire no matter what I do from here on out. I have enough to live comfortably in retirement.

More importantly, we have to see that we can enjoy ourselves now, too. That’s exactly the epiphany a Redditor had on r/ChubbyFIRE. He had his nose to the grindstone every day and then suddenly he stopped and touched grass.

24/7 Wall St. Insights:

• Ensuring we are on the path to financial security is an important decision to make.
• Yet when we can see that our goal is within sight, enjoying the simple pleasures in life is an important consideration, too.
• Changing our perspective just a little, though, can open up whole new vistas for what it really means to be happy with what you have.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

Living the good life

Redditor Grouchy is a self-made millionaire. Or, rather, he’s about to become one. He is 44 years old, has a net worth of $900,000, and has been single-mindedly focused on his financial gains.

He used to beat himself up over the fact he had not yet saved $2 million. He had invested in Apple (NASDAQ:AAPL) and Bitcoin (CRYPTO:BTC) early, but sold both over a decade ago, investment decisions he regretted. He also used to bemoan foolish investments he made. But then a lightbulb went off in his head. 

After all he has achieved, what more does he really need to be happy?

He is going to become a millionaire even if he does not save every penny anymore. In fact, he could spend everything he makes and still reach his goal. Being a gazillionaire is no longer important.

Because he was able to alter his view, he now is able to spend time with his daughter and take her and her friends out and pay for everything. He gleefully gives his mother the down payment on a new car that she needs. He can even blow a few hundred dollars a week and still be happy because he has already won and is happy.

In short, he is enjoying the journey and not simply looking forward to the destination.

Taking your eyes off the prize

I’ll admit it is a fine line between coasting to victory and taking your foot off the pedal too soon. Because the Redditor doesn’t give us a complete financial picture of how he can be sure he will attain his goals, we can’t make a judgment of whether that is really the case.

Calamities can happen. Stock markets can crash. Recessions and depressions can arise. Many things can and will likely go wrong over the next 20 years or so. While having a near-million-dollar net worth is a remarkable and laudable achievement, someone in their mid-40s needs at least $1 million to maintain their lifestyle in retirement.

Giving up on the goal just before you attain it could be foolhardy. A rude awakening could be over the horizon.

A parallax view of financial freedom

Although I’m not financial planner, so this is just my opinion and a financial and tax professional can help you make the right decision for your own situation, there is still something refreshing in the Redditor’s attitude and exuberance for his new-found mental freedom.

Assuming he is correct in his assumptions, there is little question he is right about being happy in the moment. Yet even if he’s not, he has still accomplished more than most and enjoying the little things in life — and even some big ones — is not a bad decision. In fact, it is arguably the best decision to make for many.

Too often we are consumed with the dollar amounts dangling in front of us, blinding us to the joys found in the simple pleasures of life. There is much more to life than just money. And just as things can go wrong in the market, things can go wrong in our lives too. Illness, death, separation — these are all things that can happen when our sole focus is money.

For the man who has his health, goes the old saying, he is rich. We might all do well to change our own outlook that money isn’t everything. By making that simple change in our thinking and understanding what it is that really makes us happy, we too can be wealthy, even if we don’t make it to our ultimate financial goal.