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Retirement at 40: “Frugalist” scene divides – “What planet do these people live on?”

2024-02-21T05:06:06.899Z

Highlights: Retirement at 40: “Frugalist” scene divides – “What planet do these people live on?”. As of: February 21, 2024, 5:41 a.m By: Michelle Brey CommentsPressSplit Live frugally, invest your savings: Frugalists follow this principle. The goal is a comparatively early retirement. This is not popular everywhere. The word frugalism comes from the Latin word “frugalis’, which means “economical”



As of: February 21, 2024, 5:41 a.m

By: Michelle Brey

Comments

Press

Split

Live frugally, invest your savings: Frugalists follow this principle.

The goal is a comparatively early retirement.

This is not popular everywhere.

Bremen – Retire at the age of 40.

That sounds tempting and at the same time almost too good to be true.

Debates about ending retirement at 63 or the statutory retirement age are not an issue for so-called frugalists.

The countermovement to the usual world of work is divisive.

If some are convinced, others claim that the principle cannot work at all.

Retiring at 40 – What is meant by frugalism?

The word frugalism comes from the Latin word “frugalis”.

It means “economical”.

In short: “It's about maintaining a modest lifestyle and saving the majority of your income in order to retire before the statutory retirement age,” informs the Volksbank.

Or, as the well-known frugalist Oliver Noelting describes it on his website

frugalisten.de

: “I simply spend less money than I earn in my job and save the difference.”

If you want to retire at 40, you have to plan it well.

(Symbolic image) © Alena Kuznetsova/Imago

Modesty as a path to independence at 40?

There's a little more to it than that.

Because frugalists invest their money.

On the surface, ETFs are the method of choice.

By the way, the same scene has developed in England - just under a different name.

It is called the FIRE movement and stands for the four words “Financial Independence Retire Early”.

Who can even live as a frugalist?

“As a concept of life, frugalism is not limited to certain income classes,” Noelting told

Wirtschaftswoche

.

He made it clear: Frugalism is equally suitable for low earners and high earners.

However, frugalist Florian Wagner added to the paper that for many people a profitable job is the basis.

Frugalism divides opinions – “Exactly, already retired at 40”

Nevertheless, many people are of the opinion that the frugalist principle cannot work at all.

“Retiring at the age of 40 is not very realistic for most people because the time for saving is far too short,” is the opinion of a Facebook user, which he published in a

Wirtschaftswoche

posting on the topic.

A controversial debate breaks out there.

Another user sees it similarly.

“Exactly, already retired at 40... what planet do these people actually live on?” is one indignant-sounding comment.

“Most people don’t even start working in this so-called scene before the age of 30.” Frugalists are the future recipients of citizens’ benefits, was another user’s harsh verdict.

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“It works,” says another, with the opposite opinion.

On the other hand, the words sound less convinced: “Well, you can probably dream about it.” One thing is certain: Wagner and Noelting don’t dream about it, they live as frugalists.

They are clearly satisfied with their chosen lifestyle - and are not concerned with the question of how much pension they will have left with a gross monthly salary of 3,500 euros.

Whether they can actually retire at the age of 40 remains an open question.

After all, both have not yet reached the age of 2024.

(mbr)

Source: merkur

All life articles on 2024-02-21

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