If you thought that your only path in life was to work, work and work every day until you retire; This couple will show you the opposite. Do you want to know how to retire young? Continue reading.
Mr. and Mrs. Frugalwoods, as they call themselves 31 years old, live in the city of Cambridge, Massachusetts.
She, a professional in telecommunications management, and he, in software engineering, had the privilege of graduating without having a juicy credit to pay after their studies. All thanks to the combination of their parents’ help, scholarships and working while they studied.
After finishing college, they started working and furthering their careers. Somehow they thought that this would be the project of their lives for the next 30 or 40 years.
In 2008 they got married, and in 2011, she successfully completed a master’s degree; which again, she was able to do without the need to incur any debt (she worked full time at the university she was studying at, which allowed her access to free tuition).
Finally, in 2012 they bought their first home using the savings they had at that time.
Everything seemed to be going great for this couple. The comfort of a dream and stable job; good salaries and a good quality of life. All thanks to being debt free.
They had achieved everything they had set out to do, but still they were not satisfied. This situation made them question what they really wanted for their lives. A 9 to 5 job? Being in an office all day?
Say goodbye to the comfort zone: The first step to learn how to retire young.
They were not comfortable with their weekly routine. Every day they waited for 5pm to get off work. And not to mention the wait for the weekends to go on an excursion to the mountains.
They were in a bad mood. Neither of them was satisfied with the things they did on a daily basis.
Mr. and Mrs. Frugalwoods spent a great deal of their time at work; and they wondered why they were doing it. Looking around, they realized that their office mates were working to “survive”. They spent their salaries month by month and again waited for the next payday.
This was not the lifestyle they were looking for. None of them was interested in professional notoriety, “fame” or dressing in the latest fashions in a life full of luxuries.
The latter is essential to understand this couple. They do not intend to get rich, much less it is a story of how to become a millionaire, this is how they tell it:
“We were working to earn money that we weren’t spending, in return we were coming home exhausted and stressed.”
All this burden and stress now seemed unnecessary. They were looking for a way to get out of that cycle of consumption and materialism that society lives today. On the contrary, they wanted to live in a simpler way and closer to nature.
So they decided to take action on the matter. They vowed to save as much money as possible. In addition, to contribute substantially to your 401k retirement plan; to be able to retire at 33 and seek his ideal.
How are they doing it?
One of the steps that led them on their path to financial freedom was the decision to go live in the woods.
After retiring, they want to continue working “hard”, but in things that reward them. They want to produce money that allows them sufficient economic solvency.
For this, the lifestyle they are choosing is one of low maintenance costs, through non-traditional methods, (most of the things that people would pay to do, they do themselves).
They want to rent the house they currently live in, make their own garden, plant fruit trees, and build a few cabins to rent on Airbnb.
Likewise, Mrs. Frugalwoods wants to dedicate herself to writing and publishing independently. Him, to anything else that comes their way.
Optimization: The thought that will teach you how to retire young.
For the Frugalwoods couple, it is not about surrendering to an austere lifestyle, nor about giving up material pleasures in order to have habits that lead them to moral and spiritual perfection; It’s just a matter of optimization.
Every time they see a saving option they take it. They see it as an opportunity to maximize their savings.
It may be possible to live a life without any frills, but that’s not the life this family wants to lead. They want to show that learning how to retire young is an authentic experience that allows them to enjoy themselves, pursue their passion and improve the way they lead their lives. And if for this they must “give up” traditional luxuries of society; They don’t see any problem with it.
How much do they spend and how do they do it?
In their blog they reveal how throughout 2014 they had expenses for a total of US$13,000; without counting the expenses of the mortgage loan; and have a luxurious life at the same time.
To achieve this, they only spent on the things they considered necessary and that led them to meet their savings goals.
They do not get carried away by the consumer culture of buy, buy and keep buying. Just like they don’t care much what others think about their savings ideals.
She, for example, chose to stop buying clothes, even while pregnant, and not wear makeup. Not because they want to go to the extreme of things, but because they do not see the need to acquire this type of property.
“Every time we spend money, we do it because we want to, not because we feel we have to.”
The ideology behind this lies in the reflection that they once made about the external reasons that made them spend money. Whether it was to impress others; keep up with the lifestyle of your friends; take someone else’s advice; or adhere to cultural norms. They came to the conclusion that what they have to buy is too little to be able to live their “version of the good life”.
Saving is not about depriving yourself of things or going through difficulties. It’s about spending money only on what really matters. The reason for your saving practice is not simply to save as much as possible; the point is to create a life they love to live.
There is no kind of torture in the lifestyle that they lead nor do they feel that they are missing out on the riches of life.
Conclusion.
Finally, they state that no one wakes up overnight wanting to learn how to retire young and with the idea of saving up to 70% of their salary without any hesitation. After all, anything worthwhile requires discipline to achieve.
As a first instance they had to think and plan their days in order to create an efficient life according to their ideals and finally create a manifesto.
If you want to follow the life of this couple step by step and see more details on how to retire young, you can check out their blog.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
