Step 4 - Creating a Financial Plan

Most people don’t fail at semi-retirement because they didn’t earn enough money…They fail because they never made a plan.

Today we’re breaking down Step 4 — Creating a Financial Plan that actually supports freedom, not stress.

This is the step a lot of people either try to skip, avoid, or get stuck on. It’s the first time you really have to crunch numbers, educate yourself, and work out a realistic game plan. Unfortunately, life costs money — and most of us were never taught how to use money properly, let alone how to make it work for us.

If semi-retirement is something you’re considering (or already chasing), we can’t stress this enough: you need to get this step right. It takes time, effort, and honesty, but doing the work here is what turns a dream into something sustainable.

We’ve broken this step into 7 practical parts to help you build a financial plan that actually works in real life.

1️⃣ The Plan Is About Lifestyle First (Not Numbers)

• Start with what you want your days to look like

• Where are you living?

• How often are you travelling?

• How simple or comfortable do you want life to be?

• 
  

Money is just the fuel — lifestyle is the destination.

Think of money as a tool that buys you time and freedom. We highly recommend revisiting the first three steps we’ve already covered, taking notes, and applying them here. Your financial plan should support your version of freedom, not someone else’s idea of success.

2️⃣ Know Your “Bare Minimum” Number

This is your Freedom Floor -

Ask yourself:

• What does it cost to exist comfortably?

• Food, fuel, rego, insurance, health, basic fun

• This becomes your freedom floor

If you can cover this, everything else is optional.

This step is crucial for semi-retirement survival. Get a spreadsheet going and start documenting everything. We update ours most weeks — it takes 10–20 minutes. Once a month we review it, make adjustments, and see where we might need to tighten things up.

Clarity here removes a huge amount of stress.

We go through Step 4 in the Video above

3️⃣ Separate Needs, Wants & “Nice-to-Haves”

• Needs = survival + sanity

• Wants = better gear, more trips

• Nice-to-haves = luxuries you can switch on/off

• 
  

Semi-retirement works because you can flex spending.

A real example for us is our new caravan. Spending $70k (money saved over years) wasn’t easy. In reality, that purchase covered all three categories:

• It was a need to be fully self-sufficient

• We wanted comfort like air-con, easy setup, and an ensuite

• Buying brand new and custom-designed was a nice-to-have

Understanding this helps you make confident decisions without guilt.

4️⃣ Build Buffers (Because Life Happens)

• Emergency buffer

• Travel buffer

• “Sh*t happens” buffer

  
  

Buffers buy peace of mind — not returns.

Emergency buffers are important for everyone, but they’re non-negotiable in semi-retirement. Without them, you’re putting the whole plan at risk. A common rule of thumb is keeping around three months of full-time wages accessible at all times.

We’ve structured some of our buffers through shares, which can be sold if needed while also earning capital growth and dividends. In the past, we’ve also used offset accounts linked to our mortgage — reducing interest while keeping access to the money.

There are plenty of ways to build buffers. Pick what suits you — but build something. The freedom you feel once it’s in place is huge!

5️⃣ Multiple Income Streams Beat One Big One

• Casual work

• Seasonal work

• Online income / content / side hustles

• Investments

Semi-retirement isn’t about quitting work — it’s about choosing work.

Some people argue it’s easier to just work more hours. That might be true — but it keeps you stuck in the same mindset. Semi-retirement gives you the time and space to explore ideas, hobbies, and opportunities you never had room for before.

Before we hit the road, we wanted an online income. That turned into building a website and selling knives, which eventually evolved into selling our handmade fishing rigs. It doesn’t make us rich, but it pays for the website and continues to grow.

Another example was knife sharpening. We spent around $3,000 on a quality sharpener, advertised locally, and made our money back in the first year — all cash. It became an easy way to top up funds when needed.

That’s the beauty of semi-retirement: you can start, stop, and adapt as life evolves.

6️⃣ Simple Beats Perfect

• No need for complex spreadsheets

• Track what matters

• Review it regularly

A simple plan you follow beats a perfect plan you ignore.

We believe a spreadsheet is a must — just don’t over-engineer it. Ours tracks income and expenses rather than working to a strict budget. We update it every week or two, and over time it’s given us real data to understand where our money goes and where we can improve.

You can always add complexity later if you need it.

7️⃣ The Plan Is a Living Thing

• It will change

• Costs change

• Priorities change

• Energy levels change

The goal is direction, not perfection.

Life evolves, and so will you. Having a financial plan gives you the confidence to adapt instead of panic when things shift.

Final Thoughts

If there’s one step that turns semi-retirement from a dream into reality, this is it.

Educate yourself. Take your time. Do the work.

A solid financial plan gives you the backing and confidence to keep moving forward — even when things don’t go to plan.

"Money is a Tool...Time is the Treasure"