A 29-year-old, known as 'Millennial Money Honey' online, has revealed her goal to retire at 35 with a cool $1.5 million (£1.2 million) in the bank to tide her over.
Catie T, the social media influencer, aims to share her journey toward financial independence with her extensive online following.
Now, she's offering five clever tricks for people like her who want to escape the rat race while they still have a vibrant life ahead, rather than laboring five days a week until retirement age.
He asked her video: "Four years ago, I was 26 and still had no money to my name, I thought I had to work hard until I was 65, and then I could finally retire"
Catie T, who initially embraced a typical 20-something lifestyle, made a conscious effort to manage her finances. Her dedication has clearly paid off, as she is on track to retire comfortably at the age of 35 with over £1,000,000 in the bank.
According to Business Insider, which reviewed her financial records, this young woman is remarkably ahead of the curve in terms of early retirement planning.
Before embracing the Financial Independence and Retire Early (FIRE) lifestyle, Catie had a typical millennial life in Los Angeles. She shared: "I was just living your average LA millennial life, hanging out with my friends, getting my hair done, trying to keep up with all the latest fashion trends."
As she researched more about money, she realized the importance of investing her income. This realization pushed her to adopt a FIRE-oriented approach to her finances.
Now, she’s shared five tips.
She initially estimated her annual expenses at around £30,000 and decided to double this amount as a precaution. Catie then applied the 4% rule to determine her target retirement portfolio, which involved multiplying her desired annual income by 25, resulting in a goal of $1.5 million.
To achieve her goal, Catie closely monitored her spending habits before deciding how much to save.
For example, she discovered she was spending nearly £1,000 monthly on beauty treatments, so she decided to stop bleaching her hair and return to her natural color to save money.
In her pursuit of early retirement, Catie has also switched jobs from a graphic designer in advertising to work in the tech industry. Because she knows the field offered significantly higher earnings for the same skill set.
Regarding her investments, Catie began her FIRE journey with approximately $30,000 in savings, which she invested in a Wealthfront robo-advisor account.
Most of her income now goes into her employer-matched 401(k), Roth IRA, and health savings account (HSA), with the bulk of her investments in index funds, particularly the Schwab total stock market fund.
During the pandemic, Catie returned to live with her parents, allowing her to live rent-free and save a substantial amount of money.
Catie saves 80% of her income, emphasizing the importance of setting aside funds for enjoyable activities while cutting expenses on things like expensive clothing and hair treatments. While she doesn't budget her daily spending meticulously, she remains aware of her expenses and ensures her checking account covers them.
Catie has taken to social media to share her top financial tips, aiming to help others achieve financial freedom.
