The 30-year-old retirees

General Chat
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A growing number of young tech workers are expediting the path to financial independence by living frugally and following the “4% rule.”

This made for some interesting reading.

Shortly after Kristy Chen and her partner, Bryce, turned 31, they quit their computer programming jobs and retired.

The couple had grown disillusioned with the “Boomers’ dream": get a job, buy a house, be a loyal employee, retire at 65. Instead, they devoted themselves to a barebones lifestyle, saved 80% of their annual income, and amassed a portfolio of $1m — enough to live (frugally) off the dividends.

Millennials are often hounded for their poor financial management. Some 66% of 21 to 32 year-olds have no savings, and one-third don’t actively think about retirement.

But a growing subculture of young folks — mostly high-paid tech workers, like Chen — are hellbent on achieving financial independence by their early 30s.

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They managed to save $1m just by living frugally? I’d love to have ever had the chance to do that…

Whereas I could probably have saved quite a bit… I don’t need a car, or computers, or internet… rent/mortgage have eaten half my income straight away. Then food on top of that… And I’m not badly paid.

“Kevin reels in a pre-tax salary of $165k per year”

It’s a lot easier if you start earning figures like that…

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That’s often the ‘secret’ of how young savers have managed to make things work. That or “thanks to an inheritance/gift from their parents/being able to live rent-free…”

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$165 is about £122k
Just less than 2% of the country earn that much.

But also bear in mind we are not the US: http://www.iii.co.uk/articles/390506/why-4-income-rule-flawed

It’s not impossible, but articles often hide the details.

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The average person will never earn a million over the course of their entire life.

This is a niche part of the population. Move on.

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It would take me 33 years to save up £1,000,000 if I didn’t spend my pay - which is impossible. I guess I could do it quicker, by investing and gaining compounded interest etc. But still a very long time without any money.

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Google have the saying “If you can’t reach the stars, at least shoot for the roof” (or words to that effect). Although you may not reach the £1m, it is possible to take inspiration from people who manage to save. I started buying cryptos and shares last year. The shares have made about 25% (despite some early silly mistakes) and the cryptos 400% (despite the recent crash) so good things are possible with a small amount of research…

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