Couple retires early after becoming millionaires through saving
A married couple are among the many making big savings in order to retire early. While yet to achieve this goal, Jose and Tatiana have saved $1.2million (around £962,000) by adopting a frugal lifestyle.
Jose and Tatiana are followers of the FIRE (Financial Independence, Retire Early) movement and were able to achieve financial independence by 2017.
Speaking to MarketWatch, the pair outlined how they hope to achieve an early retirement, having already achieved the first part of FIRE.
The couple met while working at the same investment management firm, and at the time of filming, were still working there.
Tatiana was earning a six-figure salary, with Jose coming close to earning the same, and they owned a rental property.
He convinced her that early retirement would be possible and would lead to a much better life for their family.
She explained: “The way he convinced me was that he said I don’t have to work forever. If we do the math right and adjust our lifestyle in a certain way, we could get to our goal faster.
“I could do whatever I want and I don’t have to travel for two weeks at a time. I could go abroad for a month or two.”
He said: “People think of it as the traditional way of retiring where you’re gonna just go and not have a job with no work.
“But it’s very different for us and for most of the people in the FIRE movement. It means you get the financial independence to do whatever you want with your time.”
The pair save around 70 percent of their income and plan to use roughly four percent interest on their assets as living expenses once they hit early retirement.
Their goal is to spend about $40,000 a year (£32,076.80) once they finally reach their FIRE goal.
When they were interviewed, they already shared that they have 30 times the $40,000 they intend to spend each year in retirement which comes to $1.2million (£962,364).
Prior to preparing for early retirement, the couple’s former mortgage repayments came to (£1764.33) with their electricity coming to $140 (£112.28) monthly.
In order to cut costs in preparation for retirement, Jose and Tatiana chose to downsize and therefore were able to pay a lot less.
At the time of filming with MarketWatch, their mortgage came to $1,150 (£922.27) a month with electricity being $76 (£60.95) over the same period.
As well as this, the pair only have one car and their commute is only six minutes so they save money on petrol.
Tatiana added: “Honestly, I used to think that in order for you to have a lot of money you have to have been born rich, have a fancy job or marry rich.
“I never thought you could just be regular middle-class earners and get there by doing the math and living a certain lifestyle.
“The truth is we don’t know what we’re going to do in retirement and that’s actually exciting for us.
“It’s alright that not everything is laid out and we just have to do some soul-searching once we have the time.”
Source: Read Full Article