The 30-year-old retirees

#1

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.

https://thehustle.co/how-to-retire-early?utm_source=sunday&utm_medium=email&utm_campaign=5%2F6%20-%20retire&utm_content=how-to-retire-early

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.

(Tony Hoyle) #2

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…

(Nick) #3

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…”

(Gareth) #4

$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.

(Jonathon) #5

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.

#6

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.

#7

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…