Retiring by 40: Passive Income Development

I’ve long thought that I wanted to retire by 40.


Doesn’t this look idyllic? I think the hammock needs a pillow though.

Picture from, retrieved from Google Images.

It seems to make sense. If I live the average lifespan, then retirement at 40 means that I get to live half my life being schooled and working, and the other half enjoying the fruits of those labour.

There’s only one problem.

I’ll be 40 next week. Sunday to be precise.

Technically, that means that if I want to retire by 40, I have to retire by 10:17:16am EDT on the 17th of May, 2016.

That should be easy!

I’d also like to define what I mean by retirement. (Yes, Dad, I’m going to define it on my terms. That’s the point of all this.)

The point is not to retire and sit around lazily doing nothing, though there will be some of that, at least at the start.


Image from, retrieved from Google Images.

Taken from the classic movie “Office Space”.

The point of retirement to me is to be free. By free, I don’t mean free from work, though that could be one implementation. It means the freedom to provide for my family in the style and methods of my choosing, and where I’d like to do that, and whether it gets interrupted or not if I decide to travel somewhere else for any length of time.

That’s where passive income comes in. Passive income is income that you earn without having to “work” in the traditional sense – where your time is either not traded directly for money, or where it is traded to a much lesser extent.

You’ve probably heard of some examples – renting real estate, creating digital goods, etc. I’ll explore some of these (including a concept that I’m developing which I hope can help people in this increasingly stressful and overwhelming world in which we’re living) over the course of the next year, and hopefully I can earn enough passive income to cover all my expenses.

To be honest, I likely won’t stop working, at least not right away, on the 17th of May in 2016. For starters, I like my job. Secondly, I may have incentives to stick around depending on the direction in which the company goes in the near future. Third, I might not have an option, if I’m not successful in my endeavors.

I will consider myself successful, though, if I have the option.

I’ve already begun working on something that I’m hoping will be worthwhile to other people. There will of course be one way to find out.

In the next post, I’m going to do a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis on what I think this next year will look like. I have to put those Masters Degrees to some use!


Picture from, retrieved via Google Images.

Time to get to work!