Imagine having complete control over how you spend your time. No more grinding away at a job you hate, no more missing out on the things that truly matter to you. It’s called time freedom, and it should be yours. I’m ready to retire in my early 40s.
How did I do it?
I: (i) educated myself and took action, (ii) paid down debt, (iii) embraced F.I.R.E., (iv) invested in the stock market, (v) invested in real estate, (vi) started side hustles, (vii) and did not inflate my lifestyle. I go into much more depth below on my path toward early retirement, and how you can do the same!
The good news is that it is easy.
Once you educate yourself, you will be able to design a life you love using your own assets. You will also have the confidence to take action, and blaze your own path to financial freedom.
Your path will be unique to you and your risk tolerance, income, and current lifestyle. Along the way, I second guessed myself, and looked for others who were on the same path towards retiring early.
In my early stages of investing, there were not many people sharing their investment journey. Now, there is such a large community of folks who are sprinting away from the corporate 9-5 lifestyle, and into time freedom and financial freedom.
If you want to follow some of those trailblazers, follow me on Instagram and check out who I follow. I follow several “finfluencers” and accounts that are publicly sharing their journey to financial and time freedom.
My Story
Toxic Work Environment. I know what it’s like to feel trapped in a toxic work environment. In 2010, I started my career at a large global law firm (aka Big Law). I was overworked, depressed, overweight, and completely miserable. Yes, I was well compensated, but the work environment was toxic and the long hours requirement made work-life balance impossible.
I also worked for a Senior Associate who was a bully and chose younger female Associates to work with him, because he knew he could get away with treating us poorly.
I worked all of the time and found myself thinking that getting injured on my way to work might be more pleasurable than actually going to work.
Having those types of thoughts was a wake-up call!
In hindsight, this comes as no surprise. In a 2020 survey by the American Bar Association, 31% of the respondents expressed dissatisfaction with their career choice. Furthermore, studies by the National Task Force on Lawyer Well-Being, reported that 28% of lawyers struggle with some level of depression, and 19% display symptoms of anxiety.
Student Loan Debt. One thing that kept me stuck in that world was student debt. With over $230,000 to pay off, I felt like I had no choice but to keep pushing through. But I knew deep down that there had to be a better way.
I became obsessed with financial literacy, investing, and debt repayment strategies. I read books and articles on achieving financial freedom and listened to tons of podcasts and Youtube videos. And most importantly, I made a plan.
I Wanted All The Freedoms.
Time Freedom
Time freedom became my ultimate goal. I wanted to escape the rat race and have the freedom to live life on my own terms. I wanted to do what I loved, when I wanted to do it. And I was determined to make it happen.
Time freedom, at its core, is the concept of having complete control over how you spend your time.
It is breaking free from the traditional 9-to-5 routine and establishing a lifestyle where your time is not dictated by a regular job or other obligations.
This means having the flexibility to pursue your passions, spend time with loved ones, or engage in any activities you choose, without any constraints.
In the context of retirement, achieving time freedom means you’ve accumulated enough savings or established enough passive income streams to support your desired lifestyle without the need for continuous active employment.
Some would define time freedom within the context of working smarter, and setting up systems to free up your time to do what you love. But, work is still work. I wanted time freedom without the constraints of having to work.
The path to financial freedom and time freedom starts with education.
You need to understand the fundamentals of personal finance and investment strategies. But knowledge alone is not enough – you need to take massive action. I’ve compiled resources and information below to help you educate yourself and take that first step towards a life of freedom.
Education also builds confidence. There is so much confusion around money. Once you get educated, you won’t second guess yourself and the choices that you’ve made. You won’t let the bad advice of a finance bro make you question your choices.
Financial Freedom
Over the last 15 years, I’ve built an investment portfolio that will allow me to retire today if I wanted to! Even though I actually enjoy my current corporate job as in house counsel, I still feel like every meeting on my calendar locks me into a time prison.
I want to throw away my alarm clock! I want to take care of my kids when they are sick without having to prioritize my inbox over caring for them.
Now, after 15 years of hard work and strategic decision-making, I have achieved financial freedom. I want to share my journey and help others reach their goals faster than I did. I believe that everyone deserves the chance to live a life of freedom and fulfillment.
Location Freedom
My investment portfolio will be giving me my precious time back. I’ve always dreamed of living abroad, and now in addition to time and financial freedom, I will can location freedom as well.
I’m still working through the details with my employer, but it feels incredibly liberating to know that if my employer says that I can’t move abroad, I don’t need my paycheck in order to do what I want to do for the rest of my life.
Having a traditional job is now completely optional for me.
Once I take the leap and retire early, I don’t think I will ever go back to the corporate world. One of the ways I gained financial freedom was to have a few side hustles in order to invest the extra income.
My online side hustles discussed below have become fun! I wake up and look forward to working on them. I will probably continue to work on them once I retire because they are a creative outlet, which is therapeutic for me.
But, I don’t ever need another full-time job!
I can spend leisure time with my family, travel to new places, and pursue my passions without worrying about a 9-5 schedule.
Don’t wait another day to start building the life you truly want. It’s possible to escape the corporate rat race and achieve time freedom. Let’s embark on this journey together.
My current age is 41 and I have a $2+ million portfolio.
I will be retiring from my corporate 9-5 at 42 or 43 years old, long before my “retirement years.” I will be able to pay myself $80,000-$100,000 each year (depending on when I retire) for the rest of my life.
Keep reading to learn how!
In sharing what I’ve done over the past 15 years, I hope that it will help others to reach financial freedom and time freedom faster than I did.
While I’m proud of my journey and what I’ve accomplished, I know that I can help others to achieve that freedom sooner. Here’s what I’ve done to set myself up to achieve time freedom 15 years later.
Educated Myself, Then Took Massive Action
The first thing I did on my path to financial freedom and time freedom starts was to educate myself. I love research, so it was easy to start. Understanding the fundamentals of personal finance and investment strategies is crucial and was my main focus.
Once I was armed with this knowledge, I took action. I started investing and making sound financial decisions that compounded over time. Below, in addition to telling you how I achieved F.I.R.E., I also include information and resources to help you further educate yourself on each of these actions.
How to Educate Yourself on Personal Finance: One way to start educating yourself on personal finance and investing is by taking FREE online courses. There are many options available from reputable sources such as Udemy, Coursera, and Skillshare.
These courses cover a wide range of topics on personal finance, including budgeting, saving, debt management, and investing. Some even offer certificates upon completion that can be added to your resume or LinkedIn profile.
If you prefer to learn on the go, podcasts are a fantastic resource for financial education. I binged so many podcasts during my commute. There are so many financial podcasts out there, but these are two my favorites: “So Money with Farnoosh Torabi,” and “Yo Quiero Dinero” with Jannese Torres. These podcasts cover various personal finance topics in an engaging and easy to understand format.
Paid Down Debt
I began to pay down my debt aggressively very early on while educating myself on investing. First, I used the snowball method. I first began to pay off my smaller loans, then rolled that payment into the next smallest loan.
Once I paid off the smallest two loans, I realized that my biggest loans (which were private) had the largest interest rates and my payments were barely reducing the principle!
It felt like throwing money down a black hole.
So I changed up my strategy, and started going after my largest debt first.
Any income I had left in my bank account on the Thursday before payday went to pay off those loans on top of the monthly payments. Annual bonuses were split up into debt paydown and investing.
Little by little, the debt went away. Over the course of 6 years, my monthly payment went from around $1,500 to $233.
Then, in 2020, the loans and interest were frozen because of Covid-19. I stopped paying (and invested that ‘extra’ money). In September 2023, once the student loan repayments started, I paid off the balance of my $33,000 in Federal loans.
How to Educate Yourself on Debt Repayment: I recommend “Zero Debt: The Ultimate Guide to Financial Freedom” by Lynnette Khalfani-Cox. This insightful book provides practical advice and step-by-step strategies to help anyone to get out of debt.
The author shares her personal journey of paying off $100,000 worth of credit card debt in just three years, offering readers a wealth of valuable lessons learned along the way. This book also includes helpful tools and resources to assist with budgeting, debt management, and improving credit scores.
Embraced F.I.R.E.
About 8 years into my debt paydown, I came across the F.I.R.E. community.
F.I.R.E. stands for Financial Independence, Retire Early.
It is a movement that advocates saving and investing with a goal of reaching a state where one has enough financial resources to choose whether or not to continue working.
This movement encourages people to live a minimalist lifestyle and maximize their savings rate by reducing expenses and investing intelligently. The ultimate aim is to allow people to retire significantly earlier than the traditional retirement age of 65.
The F.I.R.E. community has gained a lot of attention in recent years, with many people seeking financial freedom and the ability to retire early. However, this movement also faces criticism for its extreme frugal living practices and reliance on investing in the stock market.
Some argue that it may not be feasible for individuals with lower incomes or those facing significant debt. I am a firm believer that you can achieve F.I.R.E. at any income.
Your path just might be a little longer. But, once you truly understand the power of compound interest, and see it in play in your portfolio, your perspective on money, and how you spend it changes dramatically.
I didn’t let the significant debt I was facing change my pursuit of F.I.R.E. I was determined to take my payoff my $230,000 of student loans and start investing my way to financial and time freedom.
The first step was to calculate my F.I.R.E. number.
Essentially, your goal with F.I.R.E. is to retire once you’ve reached 25 times your annual expenses. The theory is that once you reach that amount in investments, you can then pay yourself from your portfolio by withdrawing 4% of your invested amount each year.
For example, my annual living expenses are approximately $80,000, then multiply that by 25, and you get $2 Million. Once I had $2 Million invested, I could pay myself $80,000 annually without running out of money for the rest of my life (or for the next 30 years of my life, based on the Trinity Study).
The Trinity Study
The Trinity Study is often considered the mathematical backbone of the F.I.R.E. movement. Conducted by three professors at Trinity University in Texas, the study explored the sustainability of various withdrawal rates from a retirement portfolio over a 30-year span.
The study’s findings proposed the ‘4% rule’, concluding that withdrawing 4% of a portfolio annually, adjusted for inflation, has a high probability of lasting for 30 years without being entirely depleted.
This rule aligns with the F.I.R.E. strategy’s objective of reaching a point where your investments are 25 times your annual expenses. Once this point is attained, according to the 4% rule, one can retire and live off these investments without the fear of running out of money, assuming an individual’s spending patterns remain consistent.
How to Educate Yourself: During the height of the pandemic, I came across the best stock market youtubers. Amon and Christina Browning run a fantastic youtube channel called Our Rich Journey. They have so much free information about investing and F.I.R.E. They were able to retire at the age of 40 with $2.5 million invested. Their channel is both inspirational and educational. They will provide you with greater clarity and demystify F.I.R.E. and financial freedom.
Invested in the Stock Market
One of the most effective ways to achieve freedom of time is by investing in the stock market. This empowers your money to work for you, even when you are not actively working for it.
Over the course of 15 years, my stock market portfolio (mostly index funds and a few individual stocks) has provided substantial returns over time. I started buying and holding index funds very early in my career.
401(k) Contributions
I automated monthly payments into my 401(k) for retirement and into my taxable brokerage account. I made sure to hit my contribution limits for my 401(k) each year. That means I maxed out what I could contribute into my 401(k).
While my law firm didn’t have a 401(k) match, my current company has a 401(k) employer match.
I think of the company match as free money.
I have been with this company for 8 years, and the match significantly contributed to my annual returns.
In the long run, the growth of my 401(k) just seemed magical.
I remember rolling over my 401(k) when I first began at the company. I had about $195,000 (5.5 years worth of contributions) in my account. Today, it has grown to approximately $645,000 (8 years later). Huge growth, which I automated, and took advantage of the free money.
Technically, my 401(k) has reached Coast F.I.R.E. That means, if I don’t contribute another dime from now on, it will still grow to over $2.5 million in 18 years, which is the time I can actually pull money from the account!
If you are wondering how I did that math, it is simple. I used the Compound Interest Calculator found on the United States Securities and Exchange Commission’s website. I plugged in the numbers and set a conservative interest rate of 7%.
This calculator is one of my favorite tools. It allows you to plan for the future and see how compound interest will work for you.
Index Funds and Compound Interest
I also invested in index funds in my taxable brokerage investment account. Taxable accounts, such as a brokerage account, is one that is not tied to a retirement plan and does not have the same tax benefits as a 401(k) or IRA. However, it offers flexibility in terms of accessing funds before traditional retirement age without penalty.
Index funds are mutual funds.
They are low-cost and diversified, which helps reduce risk in my overall investment portfolio. As a busy professional, I don’t have the time to constantly monitor and manage individual stocks. Index funds allow me to invest in a large pool of stocks with one purchase, giving me exposure to different sectors and companies without having to research each one individually.
I believe so strongly in diversification, not only with investing, but also with your income. Always diversify your income streams because you can lose your W-2 job in an instant.
While investing in the stock market inherently carries some level of risk, investing in a low-cost index fund over a long-term period, such as 10 years, significantly mitigates this risk. Index funds are designed to mirror the performance of a specific market index, providing a done-for-you diversified portfolio that spreads risk across many different stocks.
Many of my index funds track the S&P 500. This means that my investments are spread across 500 of the top companies in the US, including tech giants like Apple and Amazon, as well as other established companies in various sectors.
This diversification reduces the potential impact of any one company’s poor performance on your overall investment.
The historical trend of the stock market is upward, meaning that despite short-term market volatility and periodic downturns, the value of investments tends to increase over time.
Coupled with the low-cost nature of index funds—since they simply mimic a market index and require less active management—they become an appealing investment strategy for individuals seeking steady growth with minimized risk over a longer time horizon.
Thus, in the context of a 10-year investment plan, low-cost index funds can be a reliable and cost-effective approach to building wealth for retirement. The best time to start investing, is yesterday!
I’ve grown my brokerage portfolio to approximately $800,000 over the last 15 years. Compound interest is your friend!
I didn’t need any complex financial products. I simply chose a low cost brokerage (Vanguard, Fidelity, Schwab), set up an account, and began investing.
Any time I had money left over from my paycheck, I bought index funds.
I also purchased index funds with any extra income I had, such as side hustle money, bonuses, tax refunds, or gifts. Don’t get me wrong, I also enjoyed any money that I had.
My guilty pleasure, and my passion is luxury travel. I love travel.
Finally, once I had kids, I also started investing for their future. I opened up 529 accounts to save for their college tuition. They also have brokerage accounts that I opened and will be treated as their retirement accounts. I believe in the power of compound interest and starting early. So, with enough time, their accounts will grow so that by the time they are adults, they can have a comfortable lifestyle and don’t have to worry about paying down student debt, or not being able to afford a down payment for a home.
How to Educate Yourself: In order to educate yourself on stock market investing, I would recommend reading or listening to The Simple Path to Wealth, by J.L. Collins. This book is an excellent guide that provides straightforward advice on how to invest. The author originally intended it as a series of letters to his daughter. He wanted to make the complex world of finance digestible. He simplifies the concept of investing in index funds, showing readers how it can lead to exceptional results and wealth accumulation over time. Start your education with this book!
I also have a post on the best books on passive income. There is so much information out there to help you get educated and empowered. I recommend starting with J.L. Collins.
Invested in Real Estate
In addition to the stock market, real estate is another potent tool for wealth accumulation. Investing in rental properties can provide a steady stream of passive income, enabling you to spend more of your free time enjoying life instead of working.
I became obsessed with real estate investing in 2019 and researched everything I could. During my commute, I found a podcast called Bigger Pockets. I binge listened during my hour long commute each morning and afternoon. I learned as much as I could, and then took action.
In 2020, I purchased an 8 unit residential building. I closed on it during Covid. Everyone thought I was nuts, but it paid off in the end. Less than two years later, I sold it for $300,000 more than I paid for it. That payoff added a significant contribution towards my F.I.R.E. number.
I recognize that everyone has a different financial situation, and the average purchaser may not be able to start with an 8 unit purchase. Real estate may also not be the path you chose to help you gain financial freedom. Everyone’s path will be different.
The important thing is to simply start, and at the end of the day, remember your why.
Also remember, there are several different ways to invest in real estate.
Figure out your long-term goals, and think about what investment works best for your lifestyle. You may want to invest in a real estate syndication instead. A real estate syndication is when a group of investors pool their money together to purchase larger properties. This allows for diversification and potentially higher returns, but also comes with its own set of risks and fees.
Another option is investing in a real estate investment trust (REIT). A REIT is a company that owns and operates income-producing real estate. It offers an easy way for individuals to invest in real estate without having to directly manage properties. However, the returns may not be as high as other forms of real estate investing.
There are many more real estate investment options, and even more educational resources out there that will teach you about them.
Pick which one works for you, and take action.
I became obsessed with the Bigger Pockets Real Estate Investing podcast. I binged episodes during my hour long commute. It paid off when I took action. With the sale of that 8 unit building, I was able to get much closer to my retirement goals.
No matter what approach you take, it’s important to do your research and carefully consider all factors before making any investments. Real estate can be a lucrative venture, but it also requires patience, knowledge, and diligence. Part of your due diligence is to educate yourself and them become confident in the choices you plan to take.
How to Educate Yourself: In my opinion, the best book the best book on Real Estate investing is: The Book on Rental Property Investing by Brandon Turner. I learned so much with this book, and by listening to the Bigger Pockets podcast, which was hosted by Brandon Turner at the time. This book changed my life. Currently, I don’t own any more rental properties, but plan to in the future. Because of this book, I know how to identify a good deal, and much more.
Started Side Hustles
Another way to boost your retirement fund is through side hustles. They not only provide additional income, but also give you a safety net if your primary income source is disrupted.
The extra earnings from side hustles can be funneled directly into your investments, accelerating your path to time freedom. I calculated my F.I.R.E. number and knew that I could speed up my path if I invested more. All of my cash was allocated to expenses and investing. So, even though I make a nice salary, I realized I needed more money to invest if I wanted to achieve my F.I.R.E. number faster.
There are so many side hustles that are available in today’s gig economy and digital world!
It is hard, however, to muster up the energy to hustle with your side chick, when you’ve spent 8-10+ hours hustling with your main chick. Don’t burn out, take rest.
But, I suggest finding a side hustle that is connected to a hobby or passion. The main thing is that is side hustles can be a grind, so you might as well enjoy them!
For example, I love to talk about money and traveling, so I started this blog. This is likely not going to make a lot of money at first, but there is potential over time. I also have a creative side that was stomped out of me when I joined the law firm. I loved drawing, creating, writing, and designing so I started two Etsy shops!
Etsy Side Hustle
This was an easy side hustle to start because I worked remotely (worked during my nonexistent commute), and it is so much fun! I was profitable in the first year.
In shop #1, I sell print on demand shirts, sweatshirts, and hoodies. Print on demand is a business model where products are created only after a customer places an order. In the context of my Etsy shop, this approach means that I don’t carry any inventory. Instead, when a customer orders a specific item, that’s when the production process starts.
In my first year, I made $29,000 in revenue.
My profit margin is typically 30% of that. I reinvested some of my profit into an Etsy course, and other tools and marketing that I use to run the shop. I invest any additional money into my index fund portfolio.
In shop #2, I sell AI stock images. In creating shop #1, I often use mockups of models wearing the shirts that I sell. I then place the image on top of the shirt. I found that there was a lack of diverse mockups. So, hopped on Youtube and found a video explaining how to create images of models using an AI tool called Midjourney.
I started that shop in June 2023 and made $6,303 by the end of the year.
I automatically invested that money into a Traditional Individual Retirement Account (IRA). The profit margin is much higher on the digital products. My profit is about 85% of the revenue generated. My expenses include a virtual assistant to help me organize my photos, and pay $60 monthly for Midjourney.
I’m so close to joining those ambitious solopreneurs that I see working from their laptops on the beach!
How to Educate Yourself: If you’re looking for information on side hustles, I would start with: Clever Girl Finance: The Side Hustle Guide: Build a Successful Side Hustle and Increase Your Income. This book provides practical advice on starting and growing a side hustle, including tips for managing your time and finances.
Another great resource is Side Hustle Nation, a podcast and blog focused on helping people start and grow their side hustles. The host, Nick Loper, interviews successful side hustlers and shares tips and strategies for making money on the side.
Did Not Inflate My Lifestyle
While it’s tempting to upgrade your lifestyle as your income increases, it’s vital to resist lifestyle inflation. Keeping your cost of living relatively stable even as your earnings grow allows you to invest more towards achieving financial freedom. This is the magic of F.I.R.E., if you don’t inflate your expenses, it becomes easier to achieve your F.I.R.E. number. Here are five tips to avoid lifestyle inflation:
Identify Needs vs. Wants:
Distinguish between your needs and wants. While needs are the essentials for your well-being, wants are often luxury or non-essential items. Prioritizing needs over wants can help control unnecessary spending.
Practice Mindful Spending
Instead of spending impulsively, take time to consider if an item or service is truly worth its cost. This mindfulness can prevent overspending and help save more.
Increase Savings with Income
When your income increases, allocate a larger portion of it towards savings and investments, rather than inflating your spending.
Avoid Lifestyle Comparison
It’s easy to fall into the trap of comparing your lifestyle with others, especially in the age of social media. Remember that everyone has different financial situations and priorities, and what works for someone else may not be suitable for you.
Set Financial Goals
Setting specific financial goals can help keep you motivated and on track towards achieving
While you want to be mindful of your spending, I’m a firm believer that you shouldn’t deny yourself of your passions. My passion was luxury travel. While I was at the law firm, the only good part about my job was being able to travel well. Although we worked nonstop, I was exposed to a world of luxury travel that I never knew existed.
It became my passion. I craved it each year, and I never stopped traveling. I budgeted for it and travel hacked, but I refused to deprive myself while working towards achieving my goal.
I believe the journey to time, financial, and location freedom means enjoying your money along the way.
It’s not just about saving and investing every penny for retirement, but also about living a fulfilling life in the present. So, budget for experiences and purchases that bring you joy and enrich your life.
How to Educate Yourself: If you want a realistic approach to reducing lifestyle inflation, I recommend reading Ramit Sethi’s I Will Teach You To Be Rich. This book gives you a systematic approach to personal finance by emphasizing the importance of conscious budgeting, mindful spending, and smart investing. Sethi’s practical advice includes setting up automated payments into investment accounts, negotiating lower fees on bills, and how to enjoy your money guilt-free on the things you love.
Conclusion
In conclusion, on my path to all the freedoms, I: (i) educated myself and took action, (ii) paid down debt, (iii) embraced F.I.R.E., (iv) invested in the stock market, (v) invested in real estate, (vi) started side hustles, (vii) and did not inflate my lifestyle.
The path to early retirement and time freedom is not a fast one, but with discipline, strategic planning, and the right mindset, it can be simple and achievable.
You don’t have to do everything I did in order to achieve time and financial freedom. My journey was imperfect, and not linear trajectory upwards. It was still rewarding, especially now that I will be starting this new chapter. The most important thing is that you educate yourself and start today.
I am not a financial planner, and the above is not financial advice. I’m simply here to let you know that you can educate yourself and get confident in your approach to saving and investing your way to financial, time, and location freedom!
