The movement of ‘Financial independence’: how to save 70% of salary and retire at 30 years

36-year-old new York lawyer who makes 270,000 dollars a year, living on rice and beans, and saves 70% of his salary. He is part of a growing movement to reduce costs for early retirement. This writes the Business Insider.

Движение 'Финансовая независимость': как экономить 70% от зарплаты и выйти на пенсию в 30 лет

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Daniel lives in new Jersey to avoid the city taxes, living on rice and beans, it has one business suit for work, and he dressed warmer in the winter instead of having the heating on full power. All this helps the lawyer to save up to 70% of their salary before retirement.

He had saved more than $ 400,000 and plans to retire in three years.

And he’s not the only one, many people who earn well, have similar goals and are doing everything possible to achieve them from the prohibition of the purchase of drinks to the wearing of shoes that are falling apart.

They all hope to join the movement “Financial independence” early to retire, which was popular when 20 years ago it was published the article “Your money or your life”. This is nothing new, but more and more people are becoming interested in this movement.

To live on minimal queries allows such people to stay the course of achieving its goal.

JP Livingston, the leading blog about personal Finance called The Money Habit, has collected more than $ 2 million of savings before you can retire in 28 years.

Having decided to leave the singing early, she saved 70% of his salary. She bought cheap furniture and chose a more modest housing, although with his salary he could afford more.

This movement was joined by many.

Joe and Ali Olson worked as teachers, at the age of 30 years quit his job when he collected $ 1 million. They saved 75% of his income and lived in a house 400 square feet (37 square meters), their annual cost was about $ 20,000.

Thrift is the key to wealth creation

Thrift is the key to creating wealth, whatever.

American entrepreneur and billionaire Warren Buffett still lives in a modest house in Omaha (ne), which he bought for $ 700 276.

Sarah Stanley Falla, the Director of the research Institute of the rich market and the author of the book “the Next millionaire next door: the sustainable strategy for building wealth”, surveyed more than 600 millionaires in the USA and concluded that it is necessary to save.

“Spending more than you need to spend instead of save for retirement, spend in anticipation of what was to become rich, makes you a slave wage, even with a high level of income,” she wrote.