Imagine a slightly toned-down version of Mr. Money Mustache—one with less profanity, a bit more moderation in frugality, and a home base in Western Canada instead of the U.S. Who would that be? Meet Timothy Stobbs, the author of Canadian Dream: Free at 45 and the accompanying book, Free at 45: How to Retire Early and Happy.
I recently read this book during a vacation and was impressed with its thoughtful structure and insights. For today’s Weekend Edition, I’m sharing my take on it.
About the Author
I first came across Timothy Stobbs’ Canadian Dream blog not long after launching my own site, Mr. Money Mustache. Whether through the financial independence community or sheer serendipity, many of us small-time bloggers seem to cross paths eventually. If we had our way, we’d probably hold poker nights in 1920s hats, smoking cigars and plotting global frugality revolutions.
Tim’s mature perspective is striking, especially considering his relative youth—he was born in 1978. Despite being younger than I’d imagined, his writing reflects wisdom beyond his years. His approach to early retirement adds fresh nuance to the conversation.
What the Book Offers
Free at 45 approaches early retirement from angles that differ from many mainstream financial independence resources.
1. Flexibility in the Concept of Retirement
Tim doesn’t tie retirement to a specific age or life stage, avoiding the assumption that it’s only for those who’ve raised their kids and are entering physical decline. This open-ended perspective keeps the idea of early retirement accessible to anyone, regardless of their circumstances.
2. A Focus on Happiness Over Income
Instead of emphasizing replacing pre-retirement income, the book prioritizes understanding happiness. Concepts like hedonic adaptation and stoicism underpin much of the discussion, even if not explicitly named. These principles underscore that financial independence is more effective when paired with a free mind—one unshackled by the pursuit of material consumption.
Tim references Chilean economist Manfred Max-Neef’s hierarchy of needs to frame happiness:
- Sustenance: Food and water
- Protection: Safety and shelter
- Affection: Love and friendship
- Understanding: Making sense of life
- Participation: Being part of a community
- Leisure: Time to reflect and relax
- Creation: Making things
- Identity: Knowing yourself
- Freedom: Choosing for yourself
These values resonate deeply with the Mustachian philosophy, where less consumption often leads to more fulfillment.
Unique Touches
One standout feature of Free at 45 is Tim’s use of interviews with actual retirees. Their insights, combined with his own experiences, create a broader and more adaptable narrative. It’s a great idea I might borrow for future articles—learning from diverse perspectives enriches the conversation.
Points of Agreement and Divergence
Where We Align
Tim offers simple and practical advice on the technical aspects of early retirement:
- Retirement spending should be based on actual needs, not income levels.
- Frugal living offers partial immunity to inflation, as it allows flexibility to adjust spending habits based on changing prices.
- Risk management is often more effective than paying for expensive “safety nets.” For example, overpaying for life insurance in a two-earner household can be unnecessary when the financial math says otherwise.
Where We Differ
Tim’s approach to frugality is more moderate than mine, which reflects in his perspective on early retirement. For instance:
- He suggests that retiring extremely early may require an “extreme” reduction in annual spending—citing $24,000 per year as an example—and describes this as a lifestyle that sacrifices typical North American comforts. I’d argue otherwise, as my family’s lifestyle includes plenty of material comforts while adhering to a similar budget.
- He views retiring with young children as a riskier proposition, while I see it as an opportunity to live fully during the most rewarding years of parenting.
Canadian Perspective
Tim’s Canadian background adds a refreshing dimension to the book. It’s great to see a retirement book where the author isn’t preoccupied with health insurance. In Canada, individuals focus on maintaining their health while society handles the medical bills—at about half the cost per capita compared to the U.S. This alone is a model worth emulating.
Additionally, his discussions about Canadian-specific topics like TFSAs, RRSPs, and navigating harsh winters are highly relevant for readers north of the border.
Style and Presentation
The book reads like an extended blog post: casual, concise, and approachable. Some might prefer a more scientific tone, but I find the simplicity appealing. After all, frugality and financial independence are more about mindset than complex formulas.
In today’s publishing landscape, anyone can share their ideas with the world, and Tim’s contribution enriches the growing library of financial independence resources.
Final Thoughts
Free at 45 offers a balanced and thoughtful perspective on early retirement, combining practical advice with a deep focus on happiness. While Tim’s approach is more moderate than mine, his insights are valuable, particularly for those starting their financial independence journey.
If you’re looking for a Canadian take on early retirement—or simply a fresh perspective on living a fulfilling, frugal life—this book is worth adding to your reading list.
What’s your take on early retirement strategies? Have you explored perspectives beyond your own, and how have they influenced your approach? Let’s keep the conversation going!