0
Number of kids
$100,000.00
Annual income
$0.00
Total debt
United States
555: Retiring Early Before 30 and Why You DON’T Need Millions for FIRE
Episode Details
This might be the fastest path to FIRE we’ve ever seen. In just two years, Emily and James were able to retire early and travel the world full-time. They didn’t have a trust fund, some huge inheritance, or a winning lottery ticket. But they did make some serious sacrifices, cutting almost everything unnecessary out of their lives to retire early and quit the jobs they were itching to get out of. How’d they do it?
After realizing they were throwing away every cent they made, James stumbled upon a popular personal finance blog. He devoured it that day at work and came home a changed man. The AC temperature was going up, the restaurant expenses were going down, and he was deadset on achieving financial freedom. His wife, Emily, needed some convincing. But, with time, they both became locked in on FIRE. They moved to a cheaper house, rode bikes to work, and rarely ate out anymore.
Just two years after discovering FIRE, they achieved it, and they did it without millions of dollars in the bank. And here’s the thing: you might be able to do it, too, IF you’re willing to put in the work. How much money are they living on? How did they cut their expenses so significantly? And how do you convince your partner or spouse to follow you on the path to financial independence? Emily and James are showing you how in today’s episode!
00:00 Intro
01:21 Poverty to Overspending
06:12 Convincing Your Spouse on FI
09:09 0% to 85% Savings Rate
16:30 Buying $50K Rentals
23:29 Retiring on $31K/Year
29:40 The Secret to FIRE
32:43 Are They Still Retired?
34:36 Advice for Finding FIRE
36:24 Connect with James and Emily!
37:19 Use These FIRE Tips
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-555
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See moreIn this episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench chat with James and Emily, a couple who achieved financial independence by radically transforming their spending habits and investing in real estate. The main theme centers around making smart financial decisions to lower living expenses, thus increasing savings and cash flow even amidst societal pressures to maintain a certain lifestyle. The couple shares their journey from an initially precarious financial situation, with a 0% savings rate, to a disciplined approach that allowed them to retire in their late twenties. Throughout the episode, listeners are taken through various segments including personal anecdotes from James and Emily about their early financial struggles, the strategy behind their eventual real estate investments, and practical advice on reducing living costs. They detail decisions such as moving into a less expensive condo, cutting their food budget substantially by shopping at discount grocery stores, and using house hacking to maximize their rental income. Key takeaways include the importance of living below one's means to achieve bigger financial goals, the value of being transparent with one's partner about finances, and the necessity of setting clear, achievable targets in real estate investing. James emphasizes that "if the only thing you have in common with your friends is going out and spending money, you really don't have that much in common" highlighting the couple's shift towards a mindset that prioritizes financial stability over societal perceptions.