Have you ever dreamt of retiring early to travel the world? This dream turned reality for Steve and Courtney Adcock, a couple who managed to retire in their 30s by adhering to four simple principles. They followed the Financial Independence, Retire Early (FIRE) strategy that has been steadily gaining popularity in America. FIRE advocates for a more frugal lifestyle and aggressive savings to retire early.
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Living the FIRE Dream
In 2014, the Adcocks decided to fast-track their plans for early retirement, shortly after tying the knot. Prior to quitting their jobs, they were collectively earning more than $200,000 a year and successfully implemented the ‘four percent rule’ to attain their FIRE objectives.
The Four Percent Rule
This rule entails living off approximately three to four percent of your net worth each year. Steve and Courtney meticulously kept track of their expenses to abide by this rule
Downsizing to Upsize Their Dreams
In 2015 and 2016, the couple sold their two houses and moved into a trailer. This significant downsizing decision allowed them to save an astounding 70% of their income at the peak of their FIRE journey. Now, they’re enjoying the fruits of their labor by traveling the globe.
Four Pillars of Early Retirement
According to Steve, there are four critical strategies one must adopt when preparing for early retirement:
- Embrace Frugality: This doesn’t mean you have to forego all luxuries, but prioritizing necessities over wants can significantly boost your savings.
- Aggressive Savings: Aiming to save a high percentage of your income can accelerate your path to early retirement.
- Invest Wisely: Diversify your investment portfolio and ensure you have a mix of assets that can generate passive income.
- Have a Clear Goal: Knowing what you’re working towards can keep you motivated and focused on your journey to financial independence.
These principles were the driving force behind the Adcocks’ early retirement and globetrotting lifestyle. Their story serves as a testament to the power of financial discipline, clear goal-setting, and the courage to step out of the conventional life trajectory.
