Want to retire at the age 30?
Well, you came to the right place
in today's video, I'm going to be showing you exactly how to retire at age 30.
There's lots of people, especially a lot in the fire community.
The financial independence retire early
community who have retired by 30 or even earlier.
So it is definitely possible.
So watch the video until the very end to find out how you can do this.
I'm Tiffany Thomas with Wealthy
Tiffany Dotcom. Hit that like button and the subscribe button to get more great
content about building your wealth to become financially free.
I personally was able to retire
from my corporate job at age thirty six and I realize that is not age 30.
But I am going to show you how you could do it at age 30.
Learning from all of my mistakes.
And let's be on the same page here.
When I say retire at 30, I don't mean you have to immediately quit
your corporate job and go to the beach and just lounge around all day.
But you can have the option to do that if you wanted to.
Otherwise you could continue to work.
But you would have the choice to stay
at your corporate job and work as long as you wanted to.
Or you could quit your job and do
something that excites you a little bit more.
All right.
Being clear on that, I'm going to show you how to retire at age 30.
And really, it is simple math.
There are multiple ways to retire early.
But I'm going to show you the simplest method.
Let's say you are age 18 right now,
so you would have 12 years to prepare for retirement at age 30.
And since you are 18, let's say you are still living at home with your parents.
So you have very little expenses right now which works to your benefit.
And since you know, you want to retire early,
you are ready to put in some extra work and really get your income going.
And we know that we are going to need it
twenty five times our annual expenses from the last video that I did.
So if you haven't seen that yet, you can check it out.
I will leave a link above and below in the description.
And since your expenses are low right now,
we want to take into consideration what they would be in retirement as well.
But since you are looking to retire at age
30, we know that you're going to try to keep your expenses as low as possible.
So I'm just going to say we will have an average of thirty thousand dollars per
year for our expenses and we're going to multiply that number,
that thirty thousand by the number twenty five to get the number we need to retire,
which would be seven hundred and fifty thousand dollars.
OK, so here's a little bit more math for you.
We are going to say that we have that 12
years to invest our money and we're going to say that we were gifted six thousand
dollars from our grandma because we graduated from high school with honors.
And she loves having smart grandkids.
So we're going to say we start with a six thousand as our initial investment.
And in order to get to our seven hundred and fifty thousand dollars within the 12
years, we are going to need to invest one hundred and one dollars per day,
which would be seven hundred and seven dollars per week.
And we're going to say that we will get an eight percent return on our money.
So if we invested that one hundred and one
dollars per day for 12 years, at the end we would have a total of seven
hundred and fifty six thousand eight hundred and forty nine dollars.
So there it is.
That is the amount that we would need in order to retire by 30.
And if you don't want to invest that one
hundred and one dollars every day, if you just want to invest a hundred
dollars even every day, then the total would come out to seven
hundred and forty nine thousand five hundred and ten dollars.
So pretty close to that.
Seven hundred and fifty thousand dollar mark.
And why did I choose eight percent for our rate of return on our investment?
On average, the stock market returns eight percent.
So if you were to invest that money
in a simple index fund or an ETF that follows the total stock market,
this would be a very achievable goal to attain by investing in that index fund
or that ETF for 12 years and contributing that one hundred and one dollars per day.
And I personally like Vanguard Total Stock Market Fund, or ETF.
It's VTSAX for the index fund or VTI for the ETF.
And if you have questions about index
funds or ETFs, I do have another video on that.
So I will leave a link above and below
in the description and you can check that out.
And we already know that we can put this money into the stock market.
But how can we do that?
You could use a Roth IRA and I personally have a Roth IRA set up at Vanguard,
and all you do is contribute six thousand dollars per year to the Roth IRA.
And one of the reasons I like a Roth.
Is because any money that you put into a Roth IRA, you can pull out at any
time, you don't have to wait until retirement age to pull that money out.
And that's only money you've put in.
So that's six thousand dollars per year.
It's not money that you have earned by putting money into there.
So any interest that you've earned, you can't just pull that out at any point,
because if you did, you would have a penalty on that money.
And with a Roth IRA, you've already paid taxes.
So you're not going to pay taxes when you take any of that money out.
And I know you're thinking, well, we're investing more than six thousand
dollars a year, so where else can I put that money?
And one simple way is to set up
a brokerage account with a brokerage account.
You can pull money out at any time without any sort of penalty.
You just pay taxes.
And I would recommend holding that money at least for one year in a brokerage
account because you'll pay a lower amount in taxes.
It's called a capital gains tax rate.
And just remember, hold it for a year and you're going to pay less in taxes.
And that way, since you're retiring at 30, you don't have to wait for retirement.
Official retirement age at fifty nine and a half.
You can pull that money out at any point.
Being able to pull money out from your
brokerage account at any point at any age is very nice for those retiring early.
And I personally have my brokerage account at Ally Invest, a-l-l-y.
But Vanguard has one as well.
So you could have your Roth IRA
at Vanguard and your brokerage account if you wanted to keep things really simple.
Comment below if you are going to retire at age of 30,
I want to know who's going to retire at age 30 or if you know when you're going
to retire, even if it's not age 30, then tell me that in the comments below.
And if you're thinking, Tiffany, there's no way I can invest one hundred
and one dollars per day every day for 12 years, I get it.
That sounds like a lot of money.
But here are the key takeaways.
The earlier you start investing, the more money you are going to have over
time because of that compound interest that is your friend.
When you start investing, it starts building a little bit of interest.
But then over time, if you continue to invest,
it's going to increase exponentially by compound interest.
That is one thing that I wish I would have done.
I wish I would have started investing even earlier and investing more.
Another key takeaway is to keep your expenses as low as possible.
And I love this quote.
I can't remember where I heard it, but it's not about deprivation.
It's about prioritization.
So it's not that you are depriving
yourself of anything that you want to keep your expenses so low.
It's about making sure that you're
spending your money on your priorities, what is important to you?
And once you have that mindset,
then you are not going to spend money where it's not important and you're not
going to think, oh, where did all my money go this month?
Because you're spending consciously,
you're spending on things that are important to you.
And the third key takeaway is to increase your income where you can.
It doesn't necessarily have to be
at a nine to five job, although it can be you can ask
for promotions or raises or switch companies to get a raise,
but you can also start your own business or your own side hustle or get an extra
job where you're doing something that you love.
Maybe you love helping kids learn.
So you would be great at tutoring and you
could do that a few hours a week or you could start your own online business.
It's very inexpensive to do that because you don't really have any overhead.
You don't have a building that you have to pay for or things like that.
So just think of different ways that you could do this.
And personally one of my favorite ways
to create some passive income is through real estate investing.
I love investing in real estate.
That's one of the main ways that helped me
become financially free is through real estate.
I was able to purchase my own property first off and get roommates who helped me
pay the mortgage and then invest in rental properties.
And now I rent those out.
And now I've created that passive income
or cash flow through renters paying me rent.
And it's not entirely passive.
I could get a property manager and have it
be pretty much passive if I wanted to, but I don't mind spending my time managing
my own properties, so I've chosen to do that.
But you could make it more passive if you wanted to.
So just think of different ways that you can create some extra income,
and especially if it turns out to be passive income.
Maybe it's something that you create once,
but continue to receive money from that item that you created.
For example, maybe you want to write a book and you can sell your book.
So you create the book once and sell it to different people.
And maybe if it still seems too outlandish
to create that amount of money, to push that retirement date out a little
bit further and maybe you can retire at thirty six like I did.
And that way you would only need to be contributing three hundred and fifty
dollars per week to have seven hundred and fifty.
Eight thousand five hundred twenty one dollars and 18 years,
so it just kind of play around with the numbers and see what works
for you and really become conscious with what you're doing with your money,
how you're spending it and how you are creating it, bringing it in.
And if you want to see more of a breakdown on how I was able to replace my full time
income of seventy five thousand per year, I have a video about that.
So I will leave a link above and below
and the description and you can check that one out as well.
And just remember, nothing is impossible.
I never dreamed of quitting my job at age thirty six and becoming financially free
at such a young age that was not even on my radar when I was younger.
So it is definitely possible to retire early.
Even if you are late to the game, it's never too late to get started.
Just get started.
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Thanks so much for watching.
I'll see you in the next video.