How did you know when it "was time"?

[chasesfish]

I'm curious for those that have already pulled the plug:  How did you know?

For a little background, I get paid 45% of my compensation in the first three calendar months of the year.   The two non-base salary components of the job payout in February and March, so its coming up on that time of the year.

This is the first year where I'm looking at all the numbers and saying "holy c@#$", I can actually do this.  There's a number of reasons its better to do this the following year (and the following year, following year, ect).

I love what I do, but I don't love the time commitment or "all-in" nature of it.   Ideally, I'd like to make a move inside the company for less responsibility or work remove arrangement.   I haven't started pushing this at all and would like to see that through.  I also have the really minor possibility of the company buying another company and maneuvering for a "layoff", which would result in a windfall.

[Spork]

Mentally: I've wanted to FIRE for a long time. 

Financially: I was (and still am) overly conservative.  I am not sure my methods are good ones as I am pretty sure I saved too much.  But I'll say anyway.  I keep obsessive records.  I watched spending.  I obsessively/automatically ran lots of scenarios:
* basic 4% SWR calculation to determine "I was there"
* cfiresim and firecalc simulations (with several variations).  I pretty much aimed to hit 100% success rate for these -- which is realistically a little dumb.  100% success in the past doesn't give you any guarantees on the future and probably isn't realistically different than a 90% success rate.

[Metric Mouse]

I knew it was time when my position went from full-time to part time to contract. At that point it was clearly time to do something else.

[Mr. Green]

This one was easy for me because I didn't enjoy what I did. I'd been wanting to leave for a few years but the golden handcuffs had me. The freedom truly is amazing, if the ability to control all your time is a thing for you. Maybe your company can work out some kind of middle ground for you.

[lthenderson]

It was time when I woke up and realized that I now hated the job I used to love.

[John Doe]

I am 50 yo and I knew it was time when I saw too many people around me getting seriously ill, having heart attacks and passing away.  I don't want to be the guy who retires and 6 months later is diagnosed with something.  I still like what I do and am going to 50% to ease the transition - likely for two years.  Unless you truly love the work that you do RE when you can as life is too short.  Even if you dont know what you are 'retiring too' take that as a challenge to figure out.  I'd rather face that challenge at 50 than 60+.  Rightly or wrongly that's how I look at it.

[Daisy]

I've been thinking about FIRE-ing the last couple of years, but was just  on the edge financially ready to, and work wasn't that bad. I like the people I work with too.

But I had a huge health scare this year and I had to take 6 months off of work. That put things more into  perspective, even though my perspective was very pro FIRE before this.

Also, decisions being made by senior and middle and even direct management since I returned to work are starting to disgust me and I see my once great company going down the drain. I don't want to be around to see it. Morale is quickly degrading at work. Sitting at a meeting recently where some of these decisions were being discussed has even further cemented my 2017 FIRE date. This meeting let me know "it was time".

[MsRichLife]

I'd been planning for FIRE since 22, well before MMM existed. Two years ago, aged 37, I started seriously thinking about whether it was time to do it. That was when I found MMM. I ran all the calculators, and it appeared that we should have a 100% success rate. By all accounts, we have seriously oversaved, but I prefer to be cautious.

At that time I was locked into a one year contract with work, so planned to finish that, and then leave. Unfortunately that one year was horribly stressful and my health seriously deteriorated. As a result I stuck around for another year working part time on full pay, because my employer took on liability to get me well before I left them.

I FIRE'd one month ago. I absolutely knew it was time, financially and psychologically. Whilst only a month into it, FIRE has been everything I hoped for and my heath seems to be improving already.

[Mr.Tako]

It "was time" when the hassle of finding a new job was no longer worth it.  At my last job I was laid-off, but had a pretty good idea it was going to happen due to profitability issues.  Eventually, it did happen.

So when the time came, I was ready financially.  I thought about going back to work for a couple months, but what would be the point?

I'd have to bust ass trying to find a new job for 6 months, only then to bust ass for another few years to prove myself at the new job.  All of that just to pay more in taxes and take home a mere pittance compared to my overall portfolio?  No thanks!

I decided I was done with that kind of "high pay / high tax" work. 

I'll make more money from my portfolio this year *after* taxes than I would at a new job *before* taxes.

[chasesfish]

I'm really enjoying reading all of the replies.   I'm probably a lot like MsRichLife...I was always planning on retiring by 40, but 3-4 years ago it started getting serious. 

We can also relate to the hard work/high tax scenario, my wife stopped working a couple of years ago when I took a promotion/move and we did the math and realized her high stress job was only generating $52.80 for every $100 earned.

Here are the three biggest challenges to get over:

1) I'm not yet willing to give up that firehose of cash.  I grew up really broke and have always wanted to be FI to never experience that again.  It means the extra money could be cushion to help/deal with the family's money issues.  Its incredible to realize we're making 2-4x as much as our parents ever made.   

2) We'd have to move - I don't live in an area I'd ever live post-career.  We've moved a couple times recently and its a pain in the ass.  Need to spend the next 6-18 months to figure out where.  We've lived in two other places that we would have FId to.

3) I love the parts of my job that involve leading a team.  The people I work with are awesome and the work isn't hard anymore because of the time I've spent investing in the team.   The downside to this is I have a top revenue-producing team and would never see a layoff.  Its also not a role that'd ever be conducive to a work-remote arrangement.   

Ideally, I'd love to get something that'd allow me to move, do different work for the company, and collect another 2-4 years worth of pay and deferred bonuses.  That'd allow us to afford our FI plan of a coffee farm on in the Kona District of Hawaii.  We'll see...

[Metric Mouse]

I'll make more money from my portfolio this year *after* taxes than I would at a new job *before* taxes.

Nice to be in that situation, isn't it? :D

[BTDretire]

 I didn't know until I started reading MMM's blog close to two years ago.
I'm older at 61, just figured I'd work untill I collected SS at FRA.
We have ~35x our spending, so have plenty,  much of our gain
was  in the last 6 years.
 Nineteen more days and I'm sleeping in.

[LAGuy]

For the past 5 years, I've had a job where I knew I could be laid off at anytime. I've only got myself to manage for, so wasn't a huge deal, but it was something I had to be constantly planning for. Also, 5 years ago I bought a condo in the pricey Los Angeles market. As the years rolled by, and the condo appreciated significantly, the planning started to transition from surviving a layoff, to wondering just how much did I need to call it quits. I didn't hate the job, but it didn't allow me the flexibility to do the other things I wanted to do in life, mostly travel and really experience other cultures in ways that a few weeks just doesn't allow.

So, I started exploring selling my place this year. Despite this being a "hot" market, it was still a hell of a ride, then I finally did get laid off! Luckily, the place sold a few weeks later, and now I'm living abroad. So for me, I guess ultimately I didn't go at exactly the time of my choosing.

That said, I still plan to work some in my career. I'm fairly certain I have enough money already for what comes my way, I do want to pad it a bit to allow me to live a bit more luxuriously (an extra $1k a month in stupid money can make a big difference in life). Luckily, in my field (healthcare), I can do some short time contract work. I plan to do that about half the year, travel half the year. It's a pretty sweet situation to be in. I can live off the proceeds of the condo sale, max my retirement accounts and still have a bit left over all while taking advantage of the low end of the progressive tax system. Probably do this for another 5 years and then call it quits for good.

So, I guess I'm not exactly FIRE'd, but I am pretty FI. If I just wanted to take a few years off from work I could, but figure if I feel I may still need to work some, better to go ahead and get that out of the way now. It's definitely a lot more liberating this way. I just turned down my first contract position because I'm not in any hurry and didn't like the hours.

[Ozstache]

It was time when I woke up and realized that I now hated the job I used to love.

My situation was similar, except when I FIREd I only had an inkling that I was hating my job that I previously loved. FIRE confirmed it outright.

[chesebert]

I'd been planning for FIRE since 22, well before MMM existed. Two years ago, aged 37, I started seriously thinking about whether it was time to do it. That was when I found MMM. I ran all the calculators, and it appeared that we should have a 100% success rate. By all accounts, we have seriously oversaved, but I prefer to be cautious.

At that time I was locked into a one year contract with work, so planned to finish that, and then leave. Unfortunately that one year was horribly stressful and my health seriously deteriorated. As a result I stuck around for another year working part time on full pay, because my employer took on liability to get me well before I left them.

I FIRE'd one month ago. I absolutely knew it was time, financially and psychologically. Whilst only a month into it, FIRE has been everything I hoped for and my heath seems to be improving already.

Curious, what did you fire into?

[Metric Mouse]

It was time when I woke up and realized that I now hated the job I used to love.

My situation was similar, except when I FIREd I only had an inkling that I was hating my job that I previously loved. FIRE confirmed it outright.

Isn't it amazing how one's perspective can change, and how much bullshit one can be putting up with without realizing?

[chasesfish]

It was time when I woke up and realized that I now hated the job I used to love.

My situation was similar, except when I FIREd I only had an inkling that I was hating my job that I previously loved. FIRE confirmed it outright.

Isn't it amazing how one's perspective can change, and how much bullshit one can be putting up with without realizing?

I wonder about this part:  How much of the BS am I just programmed to accept and tolerate.

I really appreciate everyone's responses!

[arebelspy]

Financially we had a 5 year plan.  Then after a year had passed, I'd update it, so it'd be a 5 year plan.  Then again the next year.  Always a plan for the next 5 years, for several years in a row.

Then suddenly, one year I updated it, and it was only a 4-year plan.  FIRE was to happen at year 4.  The next year it became a 3-year plan, then a 2-year plan the following year.

Midway through that year, we decided to pull the plug a year early, so we skipped what would have been our last year.

So financially, we weren't quite ready.

But mentally, we were.  The wife especially was feeling over work, she felt a little burnt out.

I felt mentally okay with pulling the plug early because I got comfortable with all the ideas for various backup plans, flexibility in spending, earning extra income, going back to work, semi-ER, side gigs, etc. etc.

So we knew "it was time" because we wanted to not work anymore, and got comfortable enough to not worry that the money wasn't quite ready, that it likely would be fine (keep in mind, for example, if you're at an 80% success rate in FIRE, and pull the plug then, instead of at 100%, you may be done "early," but likely the money will work out anyways, just fine).

[Mr. Green]

Isn't it amazing how one's perspective can change, and how much bullshit one can be putting up with without realizing?

I wonder about this part:  How much of the BS am I just programmed to accept and tolerate.

I got to experience this first hand when I went back to work after 3.5 months off. All the BS had faded away in that time, leaving me with a rosier-than-reality memory of what I walked away from. I knew going back was a mistake after the first couple days. It really is amazing the things we can train ourselves to accept when we reason that "everyone else does it, this is just life." I'm more convinced now than ever that exceptional, successful people are the ones who have figured out not to accept the BS.

[MsRichLife]

I'd been planning for FIRE since 22, well before MMM existed. Two years ago, aged 37, I started seriously thinking about whether it was time to do it. That was when I found MMM. I ran all the calculators, and it appeared that we should have a 100% success rate. By all accounts, we have seriously oversaved, but I prefer to be cautious.

At that time I was locked into a one year contract with work, so planned to finish that, and then leave. Unfortunately that one year was horribly stressful and my health seriously deteriorated. As a result I stuck around for another year working part time on full pay, because my employer took on liability to get me well before I left them.

I FIRE'd one month ago. I absolutely knew it was time, financially and psychologically. Whilst only a month into it, FIRE has been everything I hoped for and my heath seems to be improving already.

Curious, what did you fire into?

We moved from the city to a country town when we FIREd. We have a house that needs renovating on a beautiful, leafy acre perched above a river which is only a 10 minute walk to town.

My primary focus for this year is to work on my health, so I see a physio and a therapist each week and I've recently started with a great pilates instructor. I'll start classes next year once my back injury is a bit more stable.

I also am spending a lot of quality time with my 4 year old son, which I missed whilst working and studying and generally burning out. :) He goes to preschool three days a week and I use my alone time to read, draw, paint, write, garden, nap, meditate etc etc. Lots and lots of self care after a couple of decades of neglect.

I am also building up my social networks. This has been easier than I expected. I've just put myself out there and joined a couple of groups and generally let people know that I'm interested in finding new friends. People have taken it upon themselves to become matchmakers. I have more social engagements here than I did in the city. In the 6 weeks since I've moved I have already been to two Christmas parties and I have another one on this weekend. I also have had four women roughly my age say that we'll have to catch up for a coffee or playdates with the kids before xmas.

All in all, it's been amazing. I really must remember not to take it all for granted.

[Playing with Fire UK]

I knew it was time to ramp up my FIRE effort when I was having more bad days at work than good days. Since then I've got a new job, but I'd go sooner if the same thing started to happen.

[gerardc]

That said, I still plan to work some in my career. I'm fairly certain I have enough money already for what comes my way, I do want to pad it a bit to allow me to live a bit more luxuriously (an extra $1k a month in stupid money can make a big difference in life). Luckily, in my field (healthcare), I can do some short time contract work. I plan to do that about half the year, travel half the year. It's a pretty sweet situation to be in. I can live off the proceeds of the condo sale, max my retirement accounts and still have a bit left over all while taking advantage of the low end of the progressive tax system. Probably do this for another 5 years and then call it quits for good.

That's my thinking as well. I'm confident I could live well on anything between $15k and $40k a year, but my life would be very different in either case. For example, since I want to be traveling, $40k would allow me to move on a whim more frequently and see more places, instead of "running out the lease" to save pennies. Above $40k, the +$1k/month wouldn't do much, IMO. Below that, we can definitely improve things a little.

I'm younger than you, but I can't wait to have more freedom and I don't want to ruin my sanity/health by working too long. So, I think I'll cut the cord at around $700k invested, then bum around for 2-3 years while still young, and see. Maybe I'll find out I like this level of spending, or maybe I'll want more. Maybe the stock market will perform better or worse than expected. Later, say at ~40, I can do a few more years of work, but only if necessary or if I want to! If I shoot for $1m right now, I'd assuredly work those years and they might wind up wasted. Also, at 40, I might want to settle down, which is ideal for corporate jobs...

Not easy to figure these things out.

ETA: Another point to consider is whether you despise your job or you're just temporarily burnt out / sick of doing it. If the latter, it might be even better to save some of the work for later, to keep challenge in your life! I'm in software engineering and research, which is interesting, but exhausting mentally. There's no benefit to me to completely cut that out of my life forever.

[HenryDavid]

When you start describing your career or working life in the past tense . . . while still working (part-time in my case, but still.)

[Frugal_is_Fab]

It was time when I woke up and realized that I now hated the job I used to love.

This is me too!  I used to love work and I honestly try to put myself in a state where I can feel that again and I just can't.  I have so many other passions now and the job just seems like it's in the way of my life.   Every minute on  the job is a struggle.    I love the comments about the "slog" of a new job as well as some people have suggested to me to get a new job to solve the problem.   My company now literally will do seven interviews with a person only to reject them at the end.    One poor soul was in an interview for 6 hours the other day with no offer!   Also, once on the new job you have to bring the A game every day.  OMG who needs it!  FIRE FIRE FIRE

[Unionville]

Get a professional analysis. I have investments at Vanguard, and they allow me to talk to a financial advisor once a year for free (free and non commission based).  The ran a report based on my living to 100 and the risk of stock market history and what income I need. I found out I was in the 95% range for safely retiring.  And then they helped me rebalance my portfolio to follow the plan.

[Cassie]

I was not sick of the work but was sick of the government BS. I also was tired of having to be somewhere all the time, etc.

[NoNonsenseLandlord]

It happened rather fast.  I was very busy buying rental property, one each year, and all of a sudden I did not buy one.  I had way more income, and paid way more taxes, than I needed. 

Looking back after than, I was able to save 2x my gross W2 income.  I set a date to quit, and the rest is history.

[soccerluvof4]

I was self employed in a highly stressful business and 50 years of age. My employees were getting greedier and greedier and I have already given them so much, heck most of there accounts I handed to them but though they were making well into the 6 figures they didn't seem to want to pay it forward and higher people under them to build or protect there portfolios. Looking back they wanted what I have now but havent worked for it yet. They spent more and more time out of the office and I just couldnt hire good people and the industry was changing. I hated going to work and felt trapped so I walked. I went out taking the high road helping them move into there new positions, took my cash flow and just pulled the plug. I would never work in the industry again though I had many many great years and made big bucks I lost money and was miserable the last 7 years trying to keep something moving forward mostly for the benefit of others.

[Charleshugh]

Initially, I was ambivalent about retiring. On the one hand I wanted to retire. On the other hand I was worried about my long term finances.

I am 61 years old and had worked for almost 40 years for the same company and was feeling very burned out. My company was acquired and I declined a full time role with the new company. I thought seriously about taking a part time consulting position but over time I realized that I just didn't want to do my job anymore.

With the acquisition of my company I had several months to think about my options. As I thought about things, I realized that the only thing that was stopping me from retiring was my insecurity about my finances.

I spent a fair amount of time obsessing over my finances. I created detailed budgets/spreadsheets (spending side) and used a variety of web services (e.g. FIREcalc, Flexible Retirement Planner, SSAnalyze) to project income from investments and social security.

Over a period of several months, I came to realize that I could afford to comfortably retire. As I grew more comfortable with my personal finances, I also became more confident in making my decision to retire. I guess you can say that I "eased into" my decision. I have not regretted retiring for one moment.

Good luck!

[Goldielocks]

The kicker for me was the 3 month sabbatical I took last summer.  I wanted to see how we would do with a reduced monthly budget and my taking over 100% of the household chores.

Because it was only 3 months, I treated it more like a summer stay at home vacation than a FIRE.  And had fun spending money for once.... and going on surprise camping weeks with the kids.  This (and my DH's fear and need for more time) resulted in my decision to return to work for 5-6 months to just earn money for extra spending purposes in the next 5 years.

But, since I have been back, it is SO CLEAR in my head that regardless of it being a very good job, with a good boss, I am ready to leave, and that my mind has already left.   I do intend to work in future, but not as an employee, and to take it at my own pace an only work for 1/5th of my previous annual income, as needed.

I plan to give notice in January, so that my boss can feel ok about reducing my annual bonus, which is paid in March (to give more $ to others, as I have been REALLY slacking this year so feel I have received my bonus already in reduced work), and then be gone in March after the Stock option vesting date, in case the options actually stay above water for once.

I think it is the peace that I get in my head when I think about leaving, that is the trigger for me.   No fear, no concern, just peace.

[gerardc]

I plan to give notice in January, so that my boss can feel ok about reducing my annual bonus, which is paid in March (to give more $ to others, as I have been REALLY slacking this year so feel I have received my bonus already in reduced work), and then be gone in March after the Stock option vesting date, in case the options actually stay above water for once.

I don't know how you can do this! I had a nightmare last night about (stupidly) giving my resignation right before the annual bonus payout. I woke up in fear :)

[Goldielocks]

I plan to give notice in January, so that my boss can feel ok about reducing my annual bonus, which is paid in March (to give more $ to others, as I have been REALLY slacking this year so feel I have received my bonus already in reduced work), and then be gone in March after the Stock option vesting date, in case the options actually stay above water for once.

I don't know how you can do this! I had a nightmare last night about (stupidly) giving my resignation right before the annual bonus payout. I woke up in fear :)

I used to worry a lot about giving up the bonus -- quitting the week before, etc... in previous years...  after all, how can you just give up 5, 10, 15 or even 30k but rather stick it out for a couple more months?....  but this year a few things happened.

1)  I did the OMY last year, and earned the large bonus last year -- so I feel I already stuck it out.
2) some weeks I only put in 30 hours / week in the past few months..
3)  locally, the year has been poor financially, although my bonus is based on corporate earnings so would not disappear... but may be a LOT smaller... like 5x smaller than last year.
4)  All my time for the past few months is "bonus" money to me!
5) realized that you need to be there March 15th, for the payout, then give your 1-2 months of notice for this to work.   That is too long for me.   (if you give notice before payout, you risk having it cut after it is approved, bonuses are fully discretionary).