The Road to Retiring at 40

My husband and I got married a year ago. We both agreed saving for our future was important, but of course we both have our weaknesses. He loves tech and spends a lot on making his life easier (as in anything that doesn’t make him get up from the couch). He also enjoys buying cheap clothing. I, on the other hand, like luxury goods and keep my clothes to a minimum. To keep from killing each other on our personal purchases, we gave ourselves a set amount of money called the “allowance.” And so far, it’s been working.

In 2014, we were lucky enough to purchase a 565 square feet studio right outside of San Francisco, California and have been there for 3.5 years. That’s right…3.5 years with him who is 6 feet tall and our 15 pound poodle (who for some reason, takes up more space than both of us combined). I’m not sure how we’ve managed, but despite all my complaining about the lack of space, it’s actually done us good. It basically helped us curb our spending. When we make a purchase, we think about what we’re buying and why we’re buying it. Sometimes we like to upgrade and we force ourselves to donate the older item, one-for-one.

So while I was doing my morning reading of the news, I came across this “new” movement of FIRE: Financial Independence and Early Retirement. People who actually retired before 40 years old! I couldn’t believe it and just thought these were people who had their own businesses or were part of Silicon Valley’s startups. The more I read, the more I realized…they are just like us! I spent a lot of time calculating each person’s income vs expense and learned that the savings rate is what really mattered. Each couple’s saving rate was at least 50% or higher. I had already been logging my expenses since college, so figuring out income vs expense wasn’t difficult for us at all. And OMG…we could do this!!!

After I had some definitive numbers, I talked to my husband and while he’s still skeptical, we devised a 15-year plan so that we could retire in our early to mid-40s. We chose 40s, even though we know we could retire in 10 years (before 40), because most people peak in their careers at between 40 and 48. We both enjoy climbing the corporate ladder and want to see where our limits are. This past year, I spent a lot of time doing research and learning about strategies from real people who retired before 40.

Finally, I had enough information and developed our strategy to take on FIRE. This blog is about our experiences and journeys to retiring early that will allow us to be financially independent and enjoy our true passion: traveling.

I do plan to post our investment strategies and progress; therefore, all information posted on this website is information purposes only. My hope is that things that we’ve done will help someone in reaching their goals, whatever it may be. 🙂

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