‘We’re watching our net-worth grow’ after we retired in our 30s – we used the 4% rule and ended up saving $1.3 million | 1MND9K5 | 2024-04-30 17:08:01
'We're watching our net-worth grow' after we retired in our 30s – we used the 4% rule and ended up saving $1.3 million | 1MND9K5 | 2024-04-30 17:08:01
A NORTH Carolina man has revealed how he and his wife were able to retire in their 30s after saving $1.3 million
Justin McCurry never made six-figures at his job, but now his nest egg keeps growing thanks to the 4% rule.
Justin previously worked as an engineer, but he and his wife decided in their 20s that they wanted to retire early, as he explained to CNBC Make It.
Over a period of 10 years, they saved $1.3 million between them, and finally packed in work for good at 33.
Despite their millionaire status, neither Justin nor his wife ever brought home a significant salary.
Both were earning around $70,000 a year at their peak before retirement, providing a household income of $140,000.
However, they lived extremely frugally, and were able to put away between $50,000 to $100,00 away every year.
Thanks to investments in the market, Justin's nest egg has doubled in size over the last seven years.
"Our net worth keeps growing as our investments grow," he said.
"We're watching our net-worth grow faster than our spending is now, which is a good position to be in."
Justin and his family, including three children, live purely off the returns of his investments.
He has no side hustle and is completely free to spend his time as he wishes.
When choosing how much to withdraw, he follows the 4% rule.
</div> Justin and his wife also own their family home in Raleigh, and have already saved for their children's college funds.
However, they still live modestly on $30,000 to $40,000 a year and are careful about what they spend.
<!-- Start of Brightcove Player --> </div> <!-- End of Brightcove Player --> WHAT IS FIRE?
Justin is part of what is known as the FIRE movement – that stands for Financial Independence, Retire Early.
Although it is far from the normal approach, this method of maximizing savings and living frugally is an inspiration for many Americans.
The Reddit community r/FI/RE has 450,000 members.
However, the movement has its critics.
The Ramsey Show's George Kamel recently warned about the impacts extreme frugality can have on your life.
"Here's the problem with that. You could live another 60 years," he said.
"So now, you're trying to penny-pinch to make this millions of dollars last 60 years."
The financial whizz reckons a balanced approach to saving vs spending is a better idea.
"Maybe it's not good for us to spend everything we make and be broke. Maybe it's not good for us to live on so little that we live in a scarcity mentality on the fritz all the time."
See why one couple with $4.3 million had regrets about retiring early.
Or how another pair retired in their 30s with just $870,000 – but their money keeps growing.
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