doing the most
A special series about ambition how we define it, harness it, and conquer it.
Photo-Illustration: by The Cut; Photos: Getty Images
Every afternoon, Lauren and Steven Keys stroll along the beach near their Florida home with their fellow retirees.
Theyre not octogenarians enjoying the fruit of decades of labor. Theyre not even 65, just beginning their post-retirement life. Lauren is 32 and Steven is 31, and the couple retired at 29.
Every day, I cant believe that this is my life right now, Lauren says.
After graduating from the University of Florida in 2012, the Keyses took a 45-day road trip to Alaska before beginning full-time jobs and grad school. The switch from the freedom of the road to the obligations of work and adulthood was jarring. They began to fear the vacation was a once-in-a-lifetime opportunity before 40-plus years of work. When they discovered the concept of early retirement, it seemed like a path to the life they wanted.
Already frugal, they took an even harder look at their finances and started tracking their net worth. They lived off a small fraction of their combined teacher and marketing salaries, picked up side hustles, downsized to one used car, said no to Starbucks and eating out, and invested the majority of their income. Today, theyve visited every national park, spent six months in Hawaii, and last year, joined TikTok to show others how to live like they do.
Theyre part of a growing online community championing quitting work long before 65, with hashtags like#EarlyRetirement, #RetireBefore30, and #FinancialIndependence. Scrolling through this content can be overwhelming, and its difficult to discern whos a real person with real tips, like the Keyses, who dont charge for their advice, and whos a scammer who just wants your cash (presumably to fund their retirement). But theres no doubt many TikTokers are taken with the idea of leaving the daily grind well ahead of their twilight years.
Long before TikTok, proponents of whats called FIRE (Financial Independence, Retire Early) have pursued early retirement. But on the app, the movement built onaggressive saving, investment, and frugality has found a new audience and come up with new strategies for piling up cash. The generally held advice is you need to reach a net worth 25 times your annual cost of living to theoretically live off your savings for the rest of your life. So, if you make $70,000 after taxes and live off half of it, you would need to reach a net worth around $875,000 to retire early. According to one of the many online FIRE calculators, that could take a little over 16 years to achieve. And thats assuming youll always live off of $35,000 for the rest of your life. If you can bump up your savings and increase your income, you could get there even faster. The methods TikTokers recommend to do that are endless: crypto, affiliate links on Amazon, opening new credit cards, investing in index funds, downgrading your car and home, selling clothes online, monetizing your hobbies, renting out rooms in your house, the list goes on. The key is to not just to save, but continually grow your income and invest the majority of it.
One creator who goes by Dumpster Diving Freegan documents finding everything from coffee and wine to toilet paper and pregnancy tests for free, even though she works in banking. Shes saving for early retirement and reducing waste, she explains in a video.
Some early retirement proponents say they plan to keep working, but only in ways they want to, like Taylor Price, 21, a podcaster, financial influencer, and entrepreneur in Raleigh, North Carolina, with 1.2 million followers, who wants to retire by the time shes 30, but not halt all her projects. The term retirement to me means work is optional, she says. I have a passion to work.
Cherry Tung, 26, a financial coach in Los Angeles, left a career in accounting and now, thanks to good financial planning, qualifies herselfas work optional. She shares financial advice on TikTok and sells a course for others hoping to retire early. I feel really uncomfortable doing nothing, she says. My purpose is in creating some impact and if its not in a corporate job, it has to be something else that Im doing.
Even the Keyses arent after a lifetime of local beach strolls. Sure, theyre planning to travel to other countries. Maybe theyll have children. Or maybe theyll open a coffee shop? That was always the allure of early retirement: opening themselves to challenges, opportunities for growth, and yes, even work, but on their own terms.
Gen Z could be uniquely primed to retire early they get a personal-finance 101 class every time they scroll through social media, and according to a 2021 Goldman Sachs Asset Management report on retirement, 25 percent of surveyed Gen-Zers plan on retiring before age 55, compared to 17 percent of millennials and just 8 percent of Gen X.
But should they? Neha Bairoliya, an assistant professor at USC who studies aging and retirement, says retiring so young is inherently risky: People underestimate the length of their life; nursing homes and retirement communities are exorbitantly expensive; health care costs more as you age; family planning is difficult to predict; access to premium Medicare and pension funds depends on the number of years you work; and the market can be unpredictable.
What worries her more is the potential loss of work experience if, years after your early retirement, you have to go looking for a corporate job again. At 21 in 2022, you might be able to hustle your way to large sums of money. But 20 or even 40 years from now, what happens if unexpected costs force you back into the traditional workforce? Youre closing too many doors behind you by making this decision, Bairoliya says. Your future self might not be very happy with that.
Its also not possible for everyone to do this. The FIRE movement in particular has been criticized for not taking into account the socioeconomic conditions and systemic racism that make it impossible for many people.
Those who retire early have common advantages: a college degree, no student debt, a partner to share expenses with, no children or relatives to care for, access to health care, and a choice about where to live. Charmagne Chi, who retired at the age of 42 in Buffalo, New York, is quick to admit her own early retirement is thanks to a combination of luck, privilege, and lifestyle. To claim otherwise is super tone-deaf, she says.
She graduated debt-free and inherited some wealth from her parents. She shares living expenses with her husband their city, neighborhood, house, and car cost less than they can afford and they dont have any children.
Shes also vocal about saying that while quitting her job did relieve a lot of stress in her life, it wasnt the magic fix to her anxiety and burnout she thought it would be, offering transparency you dont often see among the early-retirement crew on TikTok.
When @taybeepboop, who asked to be identified only by her TikTok username, shared her bright, disco-ball-enshrined, maximalist home in San Francisco, all the comments demanded one thing of the 28-year-old post-production freelancer: How did you afford this?
She wasnt a part of early-retirement TikTok she just wanted to show off her DIY dcor but answered the question anyway.
By denying herself everything but her most basic needs, she paid off her college debt in under a year and eventually saved enough for her home. When her friends went out to eat, she just ordered water. She found odd jobs on Craigslist, participated in medical trials, opened new email accounts to get food through giveaways, worked overtime on weekends, and often went to bed hungry. She was even in the process of selling her eggs when she realized shed reached her financial goal.
Hers could have been an aspirational tale perfectly packaged in a three-minute video. But for @taybeepboop, all of this deprivation came at a steep price. She thought shed be able to spend more freely after she had enough money saved, but instead still struggled to eat out when she knew she had food at home or enjoy vacations with her friends. Today shes in therapy, dealing with the anxiety that came from her year of living wildly below her means.
Its a paradox common on social media: People praised her for paying off her debt and achieving financial independence, even though it came at a high cost to her mental health. In the video detailing her financial journey, @taybeepboop cautions people against replicating her path, though it hasnt stopped comments like, Youre so inspiring.
The majority of people are just desperate, she says. They want any life preserver.
This is one reason financial content performs so well on TikTok. Young people are overwhelmed by debt, unable to buy homes, and feel ill equipped to one day retire. When someone online is doing well financially, theyre desperate to know how to copy them and might not consider a negative outcome. Even @taybeepboop thinks maybe shed do it all over again.
It was a horrible time in my life that I sort of blacked out, she says. But at the same time, I own my own home and Im financially independent.
Get the Cut newsletter delivered daily
By submitting your email, you agree to our Terms and Privacy Notice and to receive email correspondence from us.
Go here to see the original:
What It Takes to Actually Retire by 30 - The Cut
- Financial Independence [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- The One-Page Guide to Financial Independence [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- 3 Ways to Achieve Financial Independence - wikiHow [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Eight Secrets to Achieving Financial Independence [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Success! - How to get Financial Independence and Help For Real [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Financial Independence: The Final Stage of Money Management [Last Updated On: June 21st, 2016] [Originally Added On: June 21st, 2016]
- The Four Stages of Financial Independence - The Simple Dollar [Last Updated On: June 27th, 2016] [Originally Added On: June 27th, 2016]
- 21 Experts Chatting About Financial Independence | Cash ... [Last Updated On: July 3rd, 2016] [Originally Added On: July 3rd, 2016]
- 21 Experts Chatting About Financial Independence | Cash ... [Last Updated On: July 5th, 2016] [Originally Added On: July 5th, 2016]
- Welcome - Reach Financial Independence [Last Updated On: July 8th, 2016] [Originally Added On: July 8th, 2016]
- Prepping 101: Financial Independence | Suburban Steader [Last Updated On: July 9th, 2016] [Originally Added On: July 9th, 2016]
- 7 Ways To Declare Financial Independence | Bankrate.com [Last Updated On: July 10th, 2016] [Originally Added On: July 10th, 2016]
- financial independence / early retirement - reddit [Last Updated On: July 12th, 2016] [Originally Added On: July 12th, 2016]
- Prepping 101: Financial Independence | Suburban Steader [Last Updated On: July 14th, 2016] [Originally Added On: July 14th, 2016]
- How to Declare Your Financial Independence - Next Avenue [Last Updated On: July 23rd, 2016] [Originally Added On: July 23rd, 2016]
- Financial Independence: The New and Improved Retirement [Last Updated On: July 27th, 2016] [Originally Added On: July 27th, 2016]
- FMO & IMO | Financial Independence Group, Inc [Last Updated On: July 29th, 2016] [Originally Added On: July 29th, 2016]
- 8 Secrets to Achieving Financial Independence [Last Updated On: October 4th, 2016] [Originally Added On: October 4th, 2016]
- Financial Independence Academy - Sign Up Today! [Last Updated On: November 12th, 2016] [Originally Added On: November 12th, 2016]
- COLUMN-Millennial parents still like to tap the Bank of Mom & Dad - Thomson Reuters Foundation [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Speaking of Women...Are We Really More Financially Independent Now? - Investopedia [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Millennial parents still like to tap the Bank of Mom & Dad - One America News Network (press release) [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- House Dems: Trump wants to put Wall Street first - The Hill [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- 3 insider tips for achieving financial independence | The Motley Fool ... - Motley Fool UK [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- The power of financial independence - KXAN.com [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Republicans Move on Financial Deregulation; Fed Finalizes Stress Test Guidance - Lexology (registration) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Find out if you qualify for free tax preparation and financial advice - wtvr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Getting To Know You Tuesday: Elliot Dole - Forbes [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How to Prioritize Financial Goals When You Can't Do It All - Inside Higher Ed (blog) [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Millennial Parents Still Like to Tap the Bank of Mom & Dad - WealthManagement.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Days May Be Numbered for the Consumer Complaint Database - ConsumerReports.org [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Early Retirement & Financial Independence Community [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- How Much Financial Help Do You Expect From Your Parents in the Future? - New York Times [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Court Rejects Order Forcing Parents to Pay Tuition - Inside Higher Ed [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Congress could limit the Fed's independence and hurt the US economy - Washington Post [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Syrian refugee families achieve financial independence in Alliston - Simcoe.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Seattle Metropolitan Credit Union serves and empowers Latino consumers with Juntos Avanzamos program - CUinsight.com (press release) [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Consumers in cross-hairs with Dodd-Frank repeal - mySanAntonio.com [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Sheroes Founder Sairee Chahal ventures for Women's Financial Independence in India's sometimes Suffocating ... - Plunge Daily [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Surviving widowhood: Five tips to avoid financial hardship - Cincinnati.com [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Advocates say more women need financial independence: 'We really do need that extra leg up' - Globalnews.ca [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Q & A with Sr. Maureen Gallagher, setting up financial independence paths for women in Mexico - Global Sisters Report (blog) [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- The road to financial freedom - ABS-CBN News [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Independence Financial Partners - SPECIALIZING IN [Last Updated On: February 19th, 2017] [Originally Added On: February 19th, 2017]
- IDS celebrates 150 years of newswriting | Indiana Daily Student - Indiana Daily Student [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- International Financial Reporting Standards - Wikipedia [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Retiring in their 30s. Yep, they're doing it. - Crain's Chicago Business [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Opinion: Young adults need an easier path to financial independence - LSU Now [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- Successful Boomer Women Offer Financial Advice to Younger ... - Fox Business [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Another way to measure retirement readiness: Your 'Power Percentage' - USA TODAY [Last Updated On: February 25th, 2017] [Originally Added On: February 25th, 2017]
- 'Thousands' of cancer sufferers forced to borrow money from parents because of financial difficulties caused by illness - The Independent [Last Updated On: February 26th, 2017] [Originally Added On: February 26th, 2017]
- Column: Financially surviving widowhood - Cincinnati.com [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Oran Hall | Young cop seeks financial independence | Business ... - Jamaica Gleaner [Last Updated On: March 5th, 2017] [Originally Added On: March 5th, 2017]
- 'Game of Thrones' gave financial independence to Conleth Hill ... - Business Standard [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- International Women's Day - Investing for financial independence - Simple Landlords Insurance (press release) (blog) [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- Game of Thrones gave financial independence to actor Conleth Hill - Bollywood Life [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- A Struggle Back to Financial Independence After a Brain Injury - The Good Men Project (blog) [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- Financial Adviser | Oran Hall | Young cop seeks financial ... - Jamaica Gleaner [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- theFIREstarter - Financial Independence. Retire Early [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- Linda Leitz: Women, divorce and money: Financial independence is best whenever possible - Colorado Springs Gazette [Last Updated On: March 19th, 2017] [Originally Added On: March 19th, 2017]
- Linda Leitz: Women, divorce and money: Financial independence is ... - Colorado Springs Gazette [Last Updated On: March 19th, 2017] [Originally Added On: March 19th, 2017]
- Italian millennials 'won't reach financial independence until age 50 ... - The Local Italy [Last Updated On: March 23rd, 2017] [Originally Added On: March 23rd, 2017]
- NBA ex-president seeks financial independence for judiciary - Guardian [Last Updated On: March 27th, 2017] [Originally Added On: March 27th, 2017]
- Priceless financial tips from 'Billionaire Cab Driver' money guru - WND.com [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- NOEM: Fighting for financial independence - Rapid City Journal [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- 5 Action Strategies for Financial Independence - Kiplinger - Kiplinger Personal Finance [Last Updated On: March 29th, 2017] [Originally Added On: March 29th, 2017]
- NOEM: Fighting for financial independence - Daily Republic [Last Updated On: March 31st, 2017] [Originally Added On: March 31st, 2017]
- AnuOluwapo Adelakun: Of Epic Twitter Comebacks & the Importance of Financial Independence for Women - Bella Naija [Last Updated On: April 3rd, 2017] [Originally Added On: April 3rd, 2017]
- The Struggle For Financial Independence - The Korea Times US [Last Updated On: April 3rd, 2017] [Originally Added On: April 3rd, 2017]
- Regulatory reform leads to financial independence - Argus Leader - Sioux Falls Argus Leader [Last Updated On: April 5th, 2017] [Originally Added On: April 5th, 2017]
- The Financial Lesson in a $1 Hot Dog - Barron's [Last Updated On: April 7th, 2017] [Originally Added On: April 7th, 2017]
- Five facts about financial independence - finder.com.au [Last Updated On: April 7th, 2017] [Originally Added On: April 7th, 2017]
- Income-producing assets pave the way to financial independence - Moneyweb.co.za [Last Updated On: April 10th, 2017] [Originally Added On: April 10th, 2017]
- 3 Things the Financial Independence Equation Teaches Us - Huffington Post [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- Living a FI | A Geek's Guide to Financial Independence [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- levels of financial independence - Radical Personal Finance [Last Updated On: April 14th, 2017] [Originally Added On: April 14th, 2017]
- A business owner's path to financial independence - BizTimes.com (Milwaukee) [Last Updated On: April 15th, 2017] [Originally Added On: April 15th, 2017]
- Independence Financial Group [Last Updated On: April 15th, 2017] [Originally Added On: April 15th, 2017]
- Calculating Your "Magic Number" -A Fool's Errand - Forbes [Last Updated On: April 17th, 2017] [Originally Added On: April 17th, 2017]
- How to win the endgame of financial independence - MoneySense - MoneySense [Last Updated On: April 17th, 2017] [Originally Added On: April 17th, 2017]