Introduction to Early Retirement
Steve, the creator of Think Save Retire, achieved an impressive feat – he retired at the age of 35. His inspiring story caught our attention, and we reached out to him and his wife to learn more about their journey to early retirement. With many couples in their thirties achieving financial freedom, we wanted to get the inside scoop.
Who Are Steve and His Wife?
Steve and his wife are not wealthy or powerful, but they have achieved something remarkable. They have simplified their lives, which has allowed them to retire early. Steve is 35, and his wife is 32. They both left their jobs to pursue a life of full-time travel. Their blog, Think Save Retire, was created to document their journey and continues to do so.
The Path to Early Retirement
The couple’s first step towards early retirement was making the decision to retire. This decision gave them a sense of purpose and direction. They then reduced unnecessary expenses and focused on the bare essentials. By doing so, they realized how little they needed to be truly happy. Steve’s wife was a significant factor in their ability to save aggressively, as they combined their finances and concentrated on saving.
Advice for Recent Graduates
Steve’s advice to recent graduates is simple: don’t live like your colleagues. Prioritize your future by saving your hard-earned cash. This is the key to freedom. He asks, "Would you like to work in a fluorescent-lit office until you’re 65? If not, don’t live like your colleagues."
The Wake-Up Call
Steve’s wake-up call came shortly after entering the workforce 12 years ago. However, it wasn’t until he got married that he and his wife started taking action. They combined their finances and began saving aggressively.
Aggressive Saving
To save aggressively, Steve and his wife cut out unnecessary expenses such as magazine subscriptions, cable TV, and annual phone upgrades. They evaluated every purchase and asked if it was necessary. The answer was almost always no. They have come to appreciate freedom over material things.
Life in an Airstream
Steve and his wife chose to live in an Airstream instead of a motorhome. Life in an Airstream is different but manageable. The simplicity of living in a small space has simplified their lives. Cleaning takes minutes, and they don’t miss the space they gave up.
Working Digitally in Retirement
Steve doesn’t intend to work full-time again, but he enjoys working on side projects. He will stop working when it stops being fun. They are not dependent on additional income, but it’s nice when it happens. For example, his blog earns around $10,000 a year, which is enough to fund a third of their lifestyle.
Retirement Finances
Steve and his wife used tools like FireSim and Personal Capital to model their finances. These tools showed a high probability of success using the 4% rule. They are prepared to adjust if necessary. They withdraw around 3.5% of their investments annually, while their investments grow by 5-8% on average.
Investments and Happiness
Their investments continue to grow in retirement. Most of their money is in Vanguard’s targeted retirement funds, and they keep three years’ worth of living expenses in a savings account for stability. The reduction in their possessions has improved their happiness. The less they own, the happier they are.
Interesting Facts
Steve is a fitness enthusiast and a fan of the film Erin Brockovich. Photography and video are his biggest hobbies, and their YouTube channel allows him to explore these passions. Not having children has helped them save more.
Defining Early Retirement
Early retirement is freedom – the freedom to choose how to spend your time and live your life on your own terms, long before the traditional retirement age.
Conclusion
Steve and his wife’s story is proof that discipline, focus, and a clear goal can lead to early retirement, no matter where you start. Their journey is an inspiration to many, and their story serves as a reminder that achieving financial freedom is possible with the right mindset and strategy.