How to Retire In Your 30s

Ever wonder how so many young people retire in their early to mid-thirties? Though the answer is simple, many fail to understand the amount of discipline it requires to stay on target with your financial goals. The idea of retiring early sounds so ideal, but is it really as simple as some people have made it out to be? Most certainly not. From start to finish, there is a specific routine that we must follow.

A notable example of someone who accomplished this feat is Michael Quan, featured on Business Insider. In this blog, we'll discuss his top 5 best habits that propelled him from the age of 22 to retiring at age 35.

"In just thirteen years, Michael Quan garnered up to a 1.28 million net worth, along with the $110,000 he received from selling his IT consulting firm in 2016" (Maidan, Laila). He embodied the entrepreneurial mindset. He worked hard, saved money, and founded his own company that he would later sell, effectively finding his retirement.

Like many entrepreneurs in the technology sector, this is common, but it is certainly not an easy task to accomplish considering how many competitors there are in the market itself. The first question we must ask ourselves is are we ready to begin this type of journey. 

“Michael Quan believes the hardest part is getting started and removing mindset limitations” (Maidan, Laila).

First Habit: Avoiding Lifestyle Creep

Stop spending over your budgeted amount and reduce wasteful spending. Do not keep buying duplicate services and/or products from different companies that do the same exact thing. As we continue to make more money, it is easy to fall into the trap to spend more, and buying more clothes, accessories, and gadgets that we do not necessarily need because we want to impress others. These "desire" purchases can lead to bad habits that give negative returns and keep your stress levels high. Save more and spend less.

Second Habit: Build Second Savings Fund for Asset Purchases

Split your income into two savings categories. Make sure one is for your future or current business that you may be running, and the other is, for unexpected expenses and situational discretionary spending. The purpose of this is to keep saving and reinvesting within your current or your future business by also, at the same time, keeping your head above water with your own expenses. By reinvesting in two designated categories, you can have money to spend and invest in assets that will produce a cash flow payment system every month. Invest in yourself and put money back into the business. 

Third Habit: Read Books (Finance & Personal Growth)

This helps with developing a strong personal and financial mindset. Most of us lack the motivation to take a leap of faith with the lack of financial knowledge needed to make this become a reality. Reading finance books will help you develop the strong financial literacy needed to understand how

money works both personally and within a business. Reading personal growth books will help keep you levelheaded by reminding you it is possible to do this even when you do not feel like it. Keep reading and learning more information.

Fourth Habit: Acquiring Assets

Build your investment portfolio as you continue working. Real-Estate specifically is an incredibly lucrative way of developing monthly cash flows. Building equity within properties helps scale and multiply your ability to own multiple assets. This is true, especially within the economy we are currently dealing with. No matter how bad inflation gets, properties never lose monetary value. By combining this and your own business together you have a collected force that always produces cash for both business and properties,  and you can use that money to expand in all kinds of ways. Keep acquiring and investing assets. 

Fifth Habit: Automation (Savings & Business)

Set up accounts to automatically transfer money for investing. That way you do not need to even give it a second thought. Money will be transferred and allocated on the day and time that is convenient for you to utilize for acquiring and investing in more assets. Build a schedule to transfer funds at times that are most efficient, lucrative, and beneficial to you.

These top 5 habits for Michael Quan helped him reach his financial goals and retire early. Applying these habits in your life could very well help you on your journey to increase your wealth. Keep in mind, that not everyone is guaranteed the same level of success. The point is to start somewhere. These 5 habits create a road map of how you should strategize your personal and financial goals. “If you don’t believe you can do something or you can achieve something, then people don’t even try,” (Michael Quan). Don’t be afraid to start. 

If you would like to know how to find your inner drive and learn how you can save more please visit our previous blogs.

Here to help,

Your Financially Fit Team