From Low-Income Household to FIRE Before 40 with UNDER $1,000,000

Рет қаралды 15,443

Күн бұрын

Justin Taylor has unlocked the “repeatable” path to FIRE. In his early thirties, he reached financial independence and early retirement after less than a decade of working. He did it all without a trust fund, handouts, or investing knowledge. Through careful planning and some serious research, Justin was able to invest most of his income, allowing him to retire early with under a million dollars. Years later, he’s even richer than before and is STILL traveling the world without having to work a nine-to-five.
In this episode, we’re asking Justin exactly how he made the massive leap from low-income to financial freedom, the “repeatable” investing method anyone can use to do the same, and how he was able to keep his expenses so low and retire early so quickly. Plus, Justin shares how to calculate your FIRE number and why it’s not as hard to reach early retirement as you think, EVEN if you’re starting with a low salary!
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BiggerPockets Money Episode 75 - The Most Efficient Path to Financial Freedom With Justin From Saving Sherpa:
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How to Retire Early (From Someone Who Did at Age 27):
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Financial Freedom at 25 by Doing What 99% of People Won’t w/Cody Berman:
• Financial Freedom at 2...
00:00 Low-Income to FI!
02:23 Searching for Time Freedom
03:55 Starting to Invest
06:02 Calculating Your FI Number
09:09 How Much He Spends
11:37 Income and Savings Rates
12:54 What He's Investing In
16:57 Create Your FIRE Plan!
18:25 Connect with Justin!

Пікірлер: 56

@willisjacksoniv9745 Ай бұрын

I really appreciate these daily uploads, I listen while I’m at work. It keeps me from overspending and buying trips I can’t afford.

@Monkey-oy1us 27 күн бұрын

@@willisjacksoniv9745 same here! I already have my plan in place, w auto investments set up… i still watch FI/FIRE videos to keep my spending in check and stay motivated

@candecarro Ай бұрын

I agree that tracking expenses becomes second nature and that it becomes a diary. I’m 76 and my husband and I started writing down every dime or shilling we spent inSept 1968, and I have continued for over 50 years.

@KimberlyFlores-kr1bz Ай бұрын

While living in an apartment complex, I noticed many residents driving new cars. Instead of spending $500 per month on transportation, I chose older vehicles and saved the money to buy a house. Now, as an active duty service member with years of investing experience, I have a stagnant $160k portfolio and seek financial advice to improve it and maximize returns.

@JeffWilliamfick Ай бұрын

Well, try reducing the risks in your portfolios, reinforce core holdings, and take profits while balancing allocations. Although managed portfolios may not perform optimally, consulting a fiduciary financial advisor, which has worked well for my wife and me, is advisable. Our portfolio has grown to $1 million over six years using this approach.

@BrokeAgain Ай бұрын

nothing wrong driving a new car, as long as you can afford it.

@jrbluedup 29 күн бұрын

@@BrokeAgain….they and most Americans clearly can’t afford it…that’s why they are taking out car loans..

@mayyang8350 Ай бұрын

This is such an inspiring story!

@victoriaedwards2762 Ай бұрын

GREAT SHARE!!!!

@TravelingNP 4 күн бұрын

Loved this!

@FinancialFreedomLifestyle Ай бұрын

reaching FIRE before 40 is possible and even before 30! We did it by 28 and now on year 3.

@Kornheiser10 27 күн бұрын

Great, get back to us in 10 years and let us know how retirement is going for you two.

@FinancialFreedomLifestyle 27 күн бұрын

@@Kornheiser10 Will do. But I hope to see you there too ;)

@pipasmr2011 Ай бұрын

This is what you call speaking without saying anything.😂

@lashun1st 27 күн бұрын

I definitely can relate, that's how my family taught me , I started investing via Sofi little buy little, like $25 in Amazon and it grew rapidly so I started learning more. And boy was I amazed via KZfaq and books, and I'm still on the journey

@Coast_to_Coast Ай бұрын

So if he hasn’t dipped into any of his retirement funds where is the money coming from??? Is he not considering dividends retirement funds?

@Kornheiser10 27 күн бұрын

Yeah,,,,he did a nice job not answering that question....

@JustinTaylor66 4 күн бұрын

I recently did a sizeable hard money loan and our home is on AirBnB. That's the primary income streams right now.

@nesssa55 17 күн бұрын

Every episode is basically someone who starts off making low income gets to a really high income and invests like 90% of it. It makes no sense to me how he is able to travel or how he didn’t deprive himself of good things while he was saving such a high amount of his income. I just wish there was more explanations on how to achieve FI in these stories. He also receives a pension. That’s huge.

@candecarro Ай бұрын

Interesting idea of his- saying he removed his principal in his crypto investment. I like that.

@fredcanales6008 17 күн бұрын

I'd be more interested to hear how hard it was to walk away from a $200K/year income. Not many people would. It's a big chunk of cheese that is hard to let go of. I wonder if his manager thought he was crazy......or jealous.

@Jpsantos94 14 күн бұрын

What ETFs do these people buy? VT? VTI & VXUS? VOO? Any bonds?

@roburb73 Ай бұрын

I don't want to be that guy, but I have to be that one. I don't know where he was, but as a brand-new commissioned officer, his base pay using today's scale is $3526 per month, or $45k a year. However, that is only his base pay. He didn't include his BAH or BAS, which are part of his salary. if he was a single 0-1 living in Utah that would be $1683 a month, or an additional $20k a year. His BAH and BAS are tax-free, as well. That pay skyrockets after 4 years and he pins on 0-3 and now he makes $6806 monthly, or $81k, plus the BAH and BAS. I applaud him for what he did, but unless he lived in the dorms (Officers don't unless in Korea or a Deployed location), he made significantly more than $40k when he started his career and well over $100k when he ended his 4 or 6-year term. I don't know why he would leave that information out, unless there's something I am missing.

@Mav0585 Ай бұрын

This is very true, and healthcare is at no cost to the soldier. Still, I could have done what he did, and didn’t, I screwed it up. So I give him the credit for having a goal and staying focused. I’ve been in for 21 years and I’m not FIRE, because I started late. But I at least have a pension in the future to look forward to.

@roburb73 Ай бұрын

@@Mav0585 I do applaud him. I only say this because someone making $40k may think they can do that and not strive for more. The civilian saalry of equal amount can't come close what he takes home. The difference with you and I, having served 27 years myself, is the pension. My pension and VA compensation pay me the equivalent of a 4% withdrawal from a $2.5M portfolio balance. He's doing awesome, no argument there! It's misleading and I at least wanted to highlight that for people who wonder why they're not able to do the same.

@Monkey-oy1us Ай бұрын

He probably left BAH/BAS out bc ppl don’t know about that. And yes, bc of bas/bah, he’s able to save 90% of his salary.

@thirdcoastwordworks9850 27 күн бұрын

I really appreciate this additional context. It's problematic to say, "I'm going to be transparent and this is how I did it," and then omit stuff like this.

@Billybobthor 27 күн бұрын

I thought it was interesting he went from wanting $1M invested and a pension from the military to no pension and $750,000. Just goes to show how difficult and crappy jobs are these days. You need to get out of the workforce as fast as possible.

@Kornheiser10 27 күн бұрын

Ok, so in summary: make over 200k a year (plus stock options), spend around 36k, invest the rest in a boom market...easily repeatable. Oh, just remember, he never answered how he pays for everything, because he said he doesn't touch his portfolio $$$. Very repeatable...🙄

@KeeptheChange41 Ай бұрын

4 years into fire journey, moved to Europe to live for free and save more and travel cheap to help enjoy the process. Close to 80% savings rate now.

@FrugalTeacherFI 25 күн бұрын

Where are the real people that pursue FI? I started at 27k gross. With a masters degree finally after 15 years of teaching I hit 87k gross this year. Single income teacher household. We save 1/2. And live on about 35-40 a year. But it is still going to take another decade to get to the 1.3-1.5 mil we need for retirement.

@ChaoticWrath 18 күн бұрын

"rEaL pEopLe" Government jobs are only lucrative for the corrupt politicians. I am sorry that you fell into the trap and expected something different... I know more wealthy tradesmen than "academics" for a reason. The former focus on growth, while the latter focus on certifications. I began my real estate journey grossing

@fredcanales6008 17 күн бұрын

I'm still in pursuit of FI, so i can't answer 100%, but I didn't think the people that reached it based it off a lump sum target. Maybe I need to read more bigger pockets articles. But I always thought, they are accumulating assets that pay you residual/passive income. Once that passive income surpasses your FI #, then you've made it.

@nesssa55 17 күн бұрын

I don’t think it’s possible. I’ve listened to this podcast for YEARS now and for the average person it just seems unreal

@Scott_Trench 17 күн бұрын

We have some teachers on past episodes! Usually, teachers supplement their income with summer side hustles and there are a few notable examples of flipping/remodeling real estate in those summers that paid off super well for them. Fact is: There is no secret. You will not reach FI rapidly if you earn a median income and passively invest in index funds. Something has to change. A side business, real estate, aggressive all-in investment, career change, etc.

@boricua_in_wa Ай бұрын

90% savings rate? I think I am frugal but cannot relate to these people. I have not even hit 50%, so completely feel left out of this clique.

@ozzyngcsu Ай бұрын

Not to mention he would be paying at least 20 something percent in federal income taxes. Guessing he means 90% of net income.

@stocksxbondage Ай бұрын

@@ozzyngcsuRight! Maybe he’s evading taxes, begging for food on the street, stealing neighbors utilities, and not paying for health insurance 😂 I always find the extreme savings rates hilarious. I don’t think they’re being intentionally misleading, but you can get immediately spot a math error without even looking at their numbers. My first thought is maybe it’s 90%… after taxes, health insurance, and bills are paid. Sure!

@Billybobthor 27 күн бұрын

And he has a significant other who is contributing too.

@JustinTaylor66 4 күн бұрын

@@ozzyngcsu Yes I always calculate everything in take-home pay

@JustinTaylor66 4 күн бұрын

@@Billybobthor all her stats are seperated from anything I discussed, but we did start living together around 2018

@mayyang8350 Ай бұрын

Where are Justin’s links?

@juicyfruit100x Ай бұрын

Savings Sherpa. Google it

@stillhopeful7048 Ай бұрын

What index funds is he invested in?

@eplugplay8409 Ай бұрын

VTI. VOO is good too. Usually the two that people invest in.

@Kornheiser10 27 күн бұрын

Obviously only the best...

@JustinTaylor66 4 күн бұрын

VTI

@Royaldane375 Ай бұрын

With a military pension, I’d retire too!

@lenaprice6239 Ай бұрын

He doesn't get a military pension, he was in the military for 4 years.

@JustinTaylor66 4 күн бұрын

No pension after 6 years

@PreparedHome 25 күн бұрын

So hard to save money as a single parent with no support. Kids are expensive

@kevinbuechter4692 Ай бұрын

he was making 200k a year, please stop with these people. its nothing special

@ChaoticWrath 18 күн бұрын

Easy to say, but the argument collapses the second that you realize how many people gross 200+ and are living paycheck to paycheck. It takes the same work ethic.