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How did my wife and I save 70% of our income before retiring in our 30s?
This is how.
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This is how.
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1: We both made good money.
Combined, our household income was slightly above $200K.
Naturally, that makes it way easier to save 70% of our combined income.
A big income is great, but it& #39;s not the only factor.
Combined, our household income was slightly above $200K.
Naturally, that makes it way easier to save 70% of our combined income.
A big income is great, but it& #39;s not the only factor.
2: We gave ourselves a reason to save.
You& #39;re much more likely to save if you& #39;re saving for a reason.
For us, it was early retirement.
For you, it might be retirement. Or a life of travel. Living overseas.
Whatever it is, know your reason.
You& #39;re much more likely to save if you& #39;re saving for a reason.
For us, it was early retirement.
For you, it might be retirement. Or a life of travel. Living overseas.
Whatever it is, know your reason.
3: We cut a LOT of expenses.
- No cable TV
- Rarely ate out
- Frugal vacations
- Minimized utilities
Minimized utilities? Yes -> Turned off lights, watched our water use, etc. This was no sweat, and we still live like this today out of principle.
- No cable TV
- Rarely ate out
- Frugal vacations
- Minimized utilities
Minimized utilities? Yes -> Turned off lights, watched our water use, etc. This was no sweat, and we still live like this today out of principle.
FYI: We lived off of about $40,000 a year leading up to early retirement.
Your cost of living has a huge impact on your ability to save.
The lower your COL, the easier it& #39;s going to be to save big money, fast.
Your cost of living has a huge impact on your ability to save.
The lower your COL, the easier it& #39;s going to be to save big money, fast.
4: We tracked our spending.
From produce to meat, to gas for our cars to Amazon, we knew exactly how much we spent on *everything*.
If you don& #39;t track, it& #39;s impossible to cut back.
From produce to meat, to gas for our cars to Amazon, we knew exactly how much we spent on *everything*.
If you don& #39;t track, it& #39;s impossible to cut back.
5: My wife and I talked about everything.
Our future. Hopes and dreams.
And, yes, our spending.
Open communication is not only healthy, it& #39;s critical.
It helps you make goals, build wealth and save for a lavish future.
Our future. Hopes and dreams.
And, yes, our spending.
Open communication is not only healthy, it& #39;s critical.
It helps you make goals, build wealth and save for a lavish future.
6: We wanted early retirement BAD ENOUGH.
I wanted out. Out of working a full-time job. Out of corporate America.
My wife wanted to travel. To control her day. To master her destiny.
If you want something bad enough, you& #39;ll find a way.
I wanted out. Out of working a full-time job. Out of corporate America.
My wife wanted to travel. To control her day. To master her destiny.
If you want something bad enough, you& #39;ll find a way.
Do you need to save 70% of your income to retire early?
Hell no.
We saved 70% to retire in our 30s. We wanted out quickly.
A 70% savings rate isn& #39;t required to retire "early".
But, you also can& #39;t save the recommended 10% and expect to retire early.
Up the ante.
Hell no.
We saved 70% to retire in our 30s. We wanted out quickly.
A 70% savings rate isn& #39;t required to retire "early".
But, you also can& #39;t save the recommended 10% and expect to retire early.
Up the ante.
To retire early:
- Make more
- Spend less
- Plan your future
- Find common ground
You and your spouse must be on the same page.
It rarely works otherwise.
- Make more
- Spend less
- Plan your future
- Find common ground
You and your spouse must be on the same page.
It rarely works otherwise.
BTW, this thread was inspired by @markallanbovair, one of the most insightful and authentic Twitter accounts that you& #39;ll ever find.
If you aren& #39;t following Mark, fix that NOW.
If you aren& #39;t following Mark, fix that NOW.
Questions?
Feel free to ask.
Feel free to ask.
