Real Answers for Life’s Money Challenges
I turn 32 this month.
I have about $20,000 in savings and $20,000 in my 401(k).
I want to be financially independent and retire once I turn 45.
What would you recommend for me to do now to retire in the next 13 years?
My salary is $60,000 a year, and Im a single mom to two little ones.
-A.
Dear A.,
Let me tell you the story of a couple Ill call Joe and Jane.
Joe and Jane worked 15-hour days at jobs they hated.
Then Joe and Jane had an epiphany: Their jobs were costing them their health and happiness.
So Joe and Jane sacrificed.
They lived in a tiny home.
They grew their own vegetables.
They even gave up Netflix!
If only the world had more bloggers like the fictional Joe and Jane.
Many are DINKs (dual income, no kids).
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
So what can a single middle-class person like you or me take away from Joe and Janes story?
Not much, Im afraid.
If youre coupled and you each net $100,000 a year, the math works out.
For every year of work, youd save three years worth of expenses.
But surviving on such a small sliver of a $60,000 income when youre providing for two kids?
Its just not realistic.
Many people who have achieved financial independence arent retired.
Consider what work would look like for you if you had financial independence but didnt retire at 45.
Would you pursue an entirely different field of work?
Would you have more freedom to travel?
Or maybe it would simply mean fewer hours and less stress.
Need Some Quick Cash?
If youre looking to boost your income this month, weve got just the thing for you.
Just know that retiring at 45 is unrealistic for the vast majority of Americans.
And it sounds like youre doing just fine.
You have a healthy salary and savings account.
Youre starting to build a nest egg.
Robin Hartill is a senior editor at The Penny Hoarder and the voice behind Dear Penny.
Send her your questions about retirement to[email protected].
