I plan to retire at 35 with only $625,000 – an expert suggested the ‘lean FIRE’ strategy and I get to fully ‘live life’ | XY04MJ2 | 2024-04-27 17:08:01
I plan to retire at 35 with only $625,000 – an expert suggested the 'lean FIRE' strategy and I get to fully 'live life' | XY04MJ2 | 2024-04-27 17:08:01
A MAN on a mission plans to retire at just 35 with only $625,000 using the lean FIRE strategy.
It requires him to spend money wisely, but he still has adequate funds for essential matters.
Tanner Firl, a 29-year-old from Minnesota, is an extreme budgeter.
"Most people have a problem not spending money. We have almost the opposite problem," he told CNBC Make It.
Firl is part of the financial independence, retire early, or FIRE, movement.
He follows a money-saving strategy known as "lean" FIRE, which involves a very slim budget that cuts out all extraneous expenses.
He has saved $380,000 so far and plans on building up at least $625,000 to retire early at 35.
His projected portfolio would provide his family – which includes his wife, one-year-old son, and three cats – with $25,000 annual income.
Firl makes $135,000 yearly as a software engineer, with half his monthly paycheck allocated toward food and living expenses. The rest of his paycheck is invested.
The engineer acknowledged that living off $25,000 may seem insufficient, but is confident his family will make it work.
JOINING THE FIRE MOVEMENT
Firl grew up with five other siblings and quickly learned the significance of making every penny count.
Family vacations entailed family member visits or time spent at free national parks or monuments, and a typical lunch was a PB&J.
<!-- End of Brightcove Player --> However, his family was not necessarily strapped for cash – Firl's parents wanted to teach him and his siblings to work for what they wanted.
"Whenever we wanted something as a kid growing up, we would have to spend our own money to buy it or wait until a birthday or Christmas," he said.
When Firl was in college, he came upon a blog by Peter Adeney, dubbed Mr. Money Mustache – a key figure in the FIRE movement.
"It all seemed to make a lot of sense to me: basically just spending as little as you can so you can live your life as fully as you want," said Firl.
MINIMAL LIVING
The lean FIRE strategy requires that Firl and his family live very frugally.
He and his wife, Isabel, would turn to online marketplaces like Craigslist if they needed something, in hopes of finding it for free.
"We also have garnered a reputation with our friends and family as being very frugal and thrifty," said Firl.
"We do end up getting a lot of free things just because a family member will see something free on the side of the road, and they'll think that we might we might like it."
The couple also spends minimally on entertainment, engaging in hobbies such as running, listening to podcasts, playing board games, writing, and playing video games.
<!--googleoff: all--> <blockquote class="article__quote"> </blockquote> <!--googleon: all--> Additionally, the frugal pair has managed to maintain a monthly food and pet supply budget of $200 thanks to a food waste non-profit.
"For 25 bucks a bundle — a bundle is about half a carload — they just give you a ton of food and then you drive off and you have probably half your groceries for the month, if not more, depending on how much you want," said Firl.
When Firl reaches his $625,000 retirement goal, he doesn't plan to transition to a lifestyle of relaxation.
"Retiring … is not about sitting on your couch watching Netflix all day or going to the beach and getting a really nice suntan," he said.
"It's about getting to do whatever you want in life," added the software engineer, such as taking on a job he is more passionate about.
Regardless of what his retirement turns out to be like, Firl plans to maintain his frugality.
"In life there's no short supply of experiences, and most experiences that will make you happy are probably free or extremely cheap," he said.
In related news, a personal finance expert shares why the popular 50/30/20 rule doesn't work – an alternative to "pay yourself first."
Plus, a TikToker shares the three things to start seriously saving money and "get ahead of the game" with a 3x rule.
More >> https://ift.tt/1vf4Ebq Source: MAG NEWS
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