These Young Retirees Reveal the Secret to Gain Financial Freedom Before Retirement

Everyone wants to retire comfortably when they reach their 60s or 70s. However, not everyone is able to do so due to poor financial planning while they were still young. How can we make sure we’ve prepared well for our retirement? Here’s what the young retirees have to say.

The FIRE Movement

According to the financial experts, a new movement has emerged and kept on growing especially in workers between the ages 30-40 years old. This type of movement is named FIRE which means Financial Independence, Retire Early.

Most young retirees figured out it’s possible to retire early if they plan on building their retirement funds ahead through the help of their financial advisor. According to Karsten Jeske, one of the early retirees at 44 years old, it’s possible for everyone to retire. Nonetheless, it’s extremely simple to do so as long as you’re willing to save early. These young and early retirees reveal their secret to gaining financial independence to retire early.

Inspiring Financial Stories

Joel Jonathan retired at 34, based in Florida

Another young retiree named Joel Jonathan shared his story on how he decided he was done with working at the age of 29. He revealed how he was longing for the opportunity to have time in working his personal fitness, take long walks, or even cooking a nice meal without him having to render 9am-6pm jobs and get stuck in a cubicle every day.

He decided to quit his job to start focusing on the things he wants to do together with his wife Alexis. Joel revealed how they took 80% of their income including their health savings account and 401(k) plans to invest in low-cost, total market index funds. To save more money, they downgraded their lifestyle and moved in with his wife’s parents for a while.

Prior to his early retirement, Joel has been working 60 hours per week as an engineer and earns around $80,000 per year.

They rented out their house to create a passive income. They sold one out of their two cars and used carpooling to attend to their jobs. They also limit their night outs to cut down on costs. They also lowered their bandwidth allocation and found out there’s no difference with their internet browsing speed.

Joel realized then they were spending more money on internet speed they didn’t really need. Meanwhile, his wife regretted her gym membership, which she went back to after a few months. But that was okay according to Joel. He and his wife were experimenting out of their comfort zone for years to achieve financial independence. Fast forward to five years later, Joel quit his job at 34 years old and started blogging his financial journey to inspire and coach other people.

Karsten Jeske retired at 44 years old, based in California

Jeske also revealed his early retirement journey started in when the financial crisis happened and his financial stability was uncertain. The former Federal Reserve economist claimed he’s part of the movement called FatFire. He saved 50% of his salary and invests it in the U.S. and international equity index funds. His salary enabled him to invest in various equity funds easily.

Jeske adds people will be unable to retire early and comfortably if they rely on saving their money in savings accounts, time deposits, or certificates. According to him, most people can retire early if they invest their money with equities. Even if he’s lucky enough to earn a  high salary, he emphasized it was also possible for average-income earners to retire early too. According to him, a person who’s making $60,000 a year can live with only $25,000 and you can save and invest the rest.

On Saving and Investing

Jeske adds every dollar you save matters. You can put it in your savings or investment to grow your nest egg faster. It also teaches you the habit of consuming less especially if your retirement budget is low. It teaches you to downgrade your lifestyle today and delay your gratification to live an abundant life as you retire.