Jacob and Vanessa shared how they are living a debt free life and what they did to get there. It’s part of their plan to be financially independent by the time they’re 30.
I know plenty of couples who would love to do the same, but don’t think they’re capable of it.
It can be done – as many early retirees will tell you – but it takes a mindset and lifestyle adjustment. You don’t need live on the bare essentials, but you do need to evaluate what is essential for you.
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Most Important Factor for Early Retirement
Speaking with those retired or well on their way to it, I’ve found that for most of the them, the key wasn’t just earning more money (which is always nice), but rather getting their spending under control and then optimized so they can fund their investments.
We’re not talking about setting aside 5 or 10% of your income. These money masterminds are looking at 30% or more.
It sounds like a lot but you can do it.
Some people prefer to start with the big changes and wins. Jacob and Vanessa went down to one car. For us, we bought a house well within our means to keep costs manageable.
The money save is reallocated, helping us reduce debt, grow our savings, and build our investments.
You can also begin with smaller changes. Just today we were able to lower our internet bill by 15%. It didn’t take long, but I did have to set aside time to make that call.
Having a system in place to review bills occasionally allows us to fight against lifestyle inflation. You can visit Couple Money to get started and see how we did it.
But maybe you want to get information from those who have reached the finish line. One of the most popular early retirees is Pete from Mr. Money Mustache.
He’s created a community and resource for those already retired and those wanting to be financially free sooner rather than later.
That’s the power of web – you can get information you need. Podcasts like this can help you brainstorm ideas. You two can test out what works best for your family.
With that in mind, next week’s show will be about how IRAs can help you retire.