How I Saved $380K By Age 29 To Retire Early

[LevelUP]

[Pats20]

Drum roll please !

[rachel83az]

Never buy anything.
Make six figures ($135k/year)
Plan to live on $25k/year
Have your parents loan you money to pay for your university degree. (Repayment of $45k @ $746/mo. for 5 years) 3% interest.
Land a job at the NSA immediately after school earning $66k/year.
Be (initially) too anxious about spending money to have the kids you want.
Get a house with a basement and use AirBNB to earn money.
Take advantage of food pantries that are intended for people who have very little money - not for cheapskates.

[ss20ts]

Or one could be a productive member of society. There's no way one can live on $380K for 50 or more years.

[P226mem]

Take advantage of food pantries that are intended for people who have very little money - not for cheapskates.

I wondered that too and was shaking my head based on what I'm used to for food pantries.

then I Looked up a bit about Ruby's Pantry which they use in the video. Ruby's says it is for "anyone who eats". and you pay for it. not quite the same as other food pantries that I'm use to at all. new concept for me. https://www.rubyspantry.org/about-us

[LevelUP]

Take advantage of food pantries that are intended for people who have very little money - not for cheapskates.

From what I remembered from the video, the grocery stores were going to throw that food away. So buying that food keeps you from buying other food at the grocery store, which is more sustainable.

According to the USDA, in the United States, food waste is estimated at between 30-40 percent of the food supply.

[rachel83az]

Saying it's for "anyone who eats" doesn't discount that the intended recipients are likely low-income families. I'm familiar with other similar programs and they also often say things like "anyone" and "no income requirements". But you go there and it's very clearly not for people who have tons of money set aside, as he does. The programs also tend to be very limited; he's almost certainly taking food away from a family that is actually struggling.

[jsd]

I've volunteered at similar places. The "anyone who eats" type language is more about not stigmatizing those in need that are hesitant to seek help, and not so much about catering to people whose parents are paying their bills [edit: "loaning" them money, misread above post] and who otherwise have the means to support themselves.

[LevelUP]

Overall he used the Lean FIRE method.

How long does it take to save 500k? (10% investment return)

75k a year 5 years
65k a year 6 years
50k a year 7 years
40k a year 8 years
30k a year 10 years
20k a year 13 years
10k a year 18 years

You can still work after retirement. Maybe work online jobs only, do real estate, do side hustles, etc.

[freeloader]

Or one could be a productive member of society. There's no way one can live on $380K for 50 or more years.

The rule of thumb that I have always heard is to try to take around 4%-5%/year from your retirement funds when you retire. Even with conservative investments, you should be able to do a little better than 5%/year, thus making your money last longer and helping to offset inflation. 

5% of $380k is $19,000.  Good luck living on that. Hope you never get sick.

Also, this person likely does not have 40 quarters worked, so will not be eligible for Social Security.