For years, I have been fascinated by stories of those who “made it” to financial independence by their 40s or early 50s.

I’ve read articles, listened to interviews, and tried to break down what exactly it was that allowed these people to step away from their 9-to-5s while the rest of us kept working.

And as it turns out, there’s more to it than investing savvy or luck—certain personality traits and psychological patterns often separate early retirees from the rest.

Today, we take a look at six of these traits. Who knows—adopting a few of these might bring you closer to that dream of early retirement too.

Let’s dive in!

1) Frugality is their middle name

While it may seem like an obvious trait, it’s worth emphasizing.

Those who retire early usually have a knack for saving more than they spend. It’s not just about earning a hefty paycheck, but more about how they manage their finances.

They tend to lead a lifestyle that is frugal and devoid of unnecessary extravagance. Instead of splurging on the latest gadgets or high-end luxury items, they prioritize saving and investing.

It’s not that they don’t enjoy life or indulge in pleasures. But they understand the power of delayed gratification. They realize that each dollar saved today could compound into a much larger sum in the future, bringing them closer to their early retirement goal.

This understanding of frugality and financial management is a critical trait that most early retirees share. If you’re aspiring to retire early, taking a leaf out of their book could be a great starting point.

2) They are goal-oriented

Stoic philosopher Seneca once said, “If a man knows not to which port he sails, no wind is favorable.” This couldn’t be more true when it comes to early retirement—it simply doesn’t happen by accident.

Take my neighbor Paul, who retired at 50, as an example.

For years, he was a fanatical goal-setter and tracker, constantly refining his targets and breaking them down into achievable steps.

He didn’t just set a vague vision of retiring early; he mapped out every milestone along the way. From tracking his monthly savings rate to reviewing his investment portfolio regularly, every step was a deliberate move toward financial independence.

To some, this might seem like overkill. But the result?

Paul reached his goal and now lives a life of freedom, working only when he wants to, on projects he’s genuinely passionate about.

This dedication to setting and pursuing specific goals is a defining trait of early retirees. They understand the power of concrete, actionable targets and use it to fuel their journey to financial freedom.

For those aspiring to retire early, setting clear goals—and tracking them religiously—can make all the difference.

3) They are lifelong learners

Another common trait shared by those who retire early is their love for learning. They understand that learning doesn’t stop once you leave school or university.

These individuals are always on the lookout for new knowledge, skills, or experiences. This could be in the form of reading books, attending seminars, taking online courses, or simply learning from their daily experiences.

This continuous learning helps them adapt to changing circumstances, make better financial decisions, and discover more efficient ways to reach their retirement goals.

4) They are not afraid to take calculated risks

This may not be what many of you want to hear but retiring early often involves stepping out of the traditional comfort zone and taking calculated risks, especially when it comes to financial decisions.

People who retire early are not reckless, but they understand that taking measured risks is often a necessary step towards achieving their financial goals. This could mean investing in stocks, starting a side business, or even relocating to a cheaper city to lower their living expenses.

These individuals do their homework, weigh the pros and cons, and then take the leap, understanding that while there’s a chance of failure, there’s also a potential for high reward.

5) They don’t try to keep up with the Joneses

One of my favorite quotes on finance is by Dave Ramsey. He said, “We buy things we don’t need with money we don’t have to impress people we don’t like.” This rings so true for so many people, whether they like to admit it or not.

Early retirees, however, live by a different philosophy. They’re simply not interested in showing off or keeping up with their neighbors’ latest purchases, fancy vacations, or brand-new cars. Their focus is on achieving financial independence, not impressing others.

These folks understand that every dollar spent on non-essentials is a dollar taken away from their future freedom. This doesn’t mean they don’t enjoy nice things—it means they prioritize spending on what genuinely brings them happiness and aligns with their goals.

Instead of competing with others, they channel their energy and money into investments, savings, and experiences that create long-term fulfillment.

6) They practice patience

If there were one trait to highlight above all others, it would be patience. Those who retire early understand that it’s not a sprint but a marathon.

They realize that building a substantial retirement fund and creating a life that allows for early retirement is a long-term game. It doesn’t happen overnight, and there are no shortcuts.

They practice patience with their savings, their investments, and themselves. They don’t get discouraged by market fluctuations or temporary setbacks. Instead, they stay the course, keep their eyes on the prize, and patiently work towards their goal of early retirement.

Patience is not just a virtue; for early retirees, it’s a way of life.

In essence: It’s all about the mindset

So there you have it—six traits that seem to define those who reach early retirement.

It’s not just about having the right investments or earning a high income; it’s about adopting a mindset that values patience, discipline, and a clear focus on what really matters.

If you’re aiming to retire early, taking steps to incorporate these habits might just make all the difference.

Here’s to crafting a life where your time truly belongs to you!