Easy Steps You Can Take to Retire in Your 30s

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In my 20s, I moved to New York City. Though I am not a big spender, New York was eating into my $85,000 investment banking salary. I was spending $3,000 a month in rent, $600 in food, and almost $2,700 in taxes.

I calculated my projected retirement date based on my savings and contributions rate. It was 68. This was in 2015. Since then, I have taken control of my retirement and savings.

1.  Move to a Less Expensive, Less Stressful City

After moving from Manhattan to Chicago, I saw my living costs plummet. I had the same salary, but significantly lower expenses.

–  Groceries in Chicago are 25% cheaper.

–  Health insurance costs 30% less.

–  Services such as haircuts are 20% less.

–  Housing is ½ of what it is in New York.

My expenditures in Chicago in total were 30% LESS.

My commute is also much shorter (by 1 hour per day). With my newfound free time, I am working to generate multiple sources of income with financial consulting and blogging.

2.  Save on Taxes

New York State has a progressive tax rate based on income — mine was about 6.5%. On top of state taxes, New York City also levies a 3.5% if you live within city limits. That was 10% of my income going to city and state taxes.

Illinois had a flat tax of around 3.75% regardless of income. I do not pay a city tax at all.

I also started making a significant portion of my income free-lancing and doing financial consulting. Being self-employed, I am able to take deductions on certain expenses such as:

(1)  Flights

(2)  Computers

(3)  Food when traveling

(4)  Cell phone and internet plans

3.  Ditch Your Car

Since 2015, I got rid of my car and took public transportation instead. It was not for financial reasons though. I got rid of it to remove the stress of maintenance, parking, and worrying about the depreciation.

As a side effect, I am saving a lot of money. The monthly car payment for my 2014 Honda Accord was $450. With compounding interest and assuming a 7% annual return, my $450 monthly savings translates to $6,000 a year, or more than $300K over 20 years.

Can I retire in my 30s?

At this point, I am aiming to hit the $1 million goal by 30. Can I retire? Yes. Will I do it? Who knows? The point is, I COULD retire in my 30s. Having that option makes my life so much better.

Hello and Welcome!

My name is William. I am a private equity investor and the owner of Million Dollar Tips. Over the last 5 years, I have been committed to growing both as a person, and as a professional.

Look at where you want to be in five years, and commit yourself getting there today! Want to learn a new language or earn a million dollars? We’re a community dedicated to help you getting there.

We are here to assemble a central depository of tips, tricks, and life hacks to help people take control of their personal, professional, and financial goals.

Our mission is to empower you to elevate your life, one tip at a time.


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