Who waited until 30 or later to start living below their means?

[deek]

I just wanted to get an idea of this to assure myself that having debt at 26 and making less than 40k is not the end of the world. And maybe give others something to see that gives them hope and proves that patience pays off. I'm just starting to create some great habits, and while I wish I would've started at 20, there's still plenty of opportunity to FIRE.

[jlcnuke]

I was in my late 20's when I realized I wouldn't be getting a nice military retirement check. That's when I started researching how to be better with my money and actually started saving and investing. I'm 41 now and anticipate retiring before I'm 50 in a "not very mustachian" cost of living (most likely ~$60k/year for just myself). So it can be done and, if you're more mustachian than I am and don't let your cost of living go up as much, you could still do it younger than I plan to.

[Jantoven]

I just wanted to get an idea of this to assure myself that having debt at 26 and making less than 40k is not the end of the world. And maybe give others something to see that gives them hope and proves that patience pays off. I'm just starting to create some great habits, and while I wish I would've started at 20, there's still plenty of opportunity to FIRE.

I was still in school and racking up debt at that age my friend.  Even after I finished school, I still barely saved anything for a few years.  Once I entered my early 30s though, I started to better understand the beauty of compounding and changed my direction.  I also live in a VHCOL area, so while I spend quite a bit more than a typical Mustachian for basic things (i.e. housing), I am still aiming for retirement around 50.  Old for this message board probably, but still not bad IMO.  :)

[Zola.]

25 is when I met my now wife and had almost a complete turnaround in personal finance lifestyle in the process. I still have little gremlins on occasion.

When I met her I was at the end of my partying days, every weekend getting into all sorts of shapes.... and I was burning through all my money. I had very little savings. Fast forward 8 years, and after working hard, saving, promotions, I am 33 now, married with a house, modest savings, modest investments, but I am on the track.

I am certainly nothing special, but if you work hard and focus, you will be fine!

Probably, the important thing is not realising it when you are 60, and basically screwed.  You have time on your side.

[PaulMaxime]

I always had good intentions to live below my means. I learned about FIRE in the late 1990s and had great intentions.

Then I got married, wife's kid had to go to college, pay for her wedding, deal with health issues, put a new kitchen in the house, etc...

Life got in the way.

I always put money in my IRA/401K but outside of that never did a great job saving/investing.

I got REALLY serious only in 2007 when I moved out to Silicon Valley for a new job. I was single (wife passed away in 2004) and just made up my mind that I would finally achieve FI. I was 43 years old.

Now I'm still working but fully FI 11 years later. Will probably "retire" at the end of this year.

[Petuniajo]

I lived pretty frugally, but I was still in school full time up until I was 29 (multiple degrees which have led to my dream job, so well worth the investment for me). I just didn't earn enough money to fully live below my means, but once I finally finished all my schooling and started working full-time, I started (slowly at first) ramping up my retirement savings.

[Slow2FIRE]

Lower pay and debt was my life for many years.

Early 30s I was finally making okay money ($55K), but living in a HCOLA - Seattle, WA (Eastside).
Mid to late 30s I finally started making "good money" and living beneath my means.  Solid track record of saving started about 3 years ago (40% of gross saved with 30% of gross going to payroll taxes and income tax).  Should be FI or FIRE by 50.

[DreamFIRE]

I lived below my means, even when I had a low income a couple decades back with my first full time job.  Yes, I had some debt for my relatively low cost home, but I paid it off as quickly as I could, and I drove used cars and always saved with each paycheck.

[ducky19]

At 28 I was just getting married for the second time to my forever wife, but shortly before that I was filing bankruptcy. Essentially, I spent my early 20's smoking the reefer and being a general all around idiot. Then when I got married and my daughter came along, I spent my mid 20's just trying to survive (but still racking up debt). By my late 20's, I was divorced and paying child support (still not sure what my DW saw in me to be honest!) and still not in good shape financially.

My wife and her family were all really good with money and after I filed bankruptcy I vowed to never find myself in that shape again. My wife let me take control of the finances (HUGE leap of faith on her part) and I turned things around. She now calls me the Finance Nazi, and readily admits she's the spendier one of the relationship (although she's still pretty frugal!). Currently 43 and planning to walk away from the corporate life by no later than 53 (potentially sooner). I could have retired much earlier if I had more sense in my 20's, but I have a LOT of great memories and a daughter I wouldn't trade for the world. For what it's worth, I wasn't making more than 30k/year until I was well into my 30's, so you're doing just fine - and have plenty of time!

[deek]

Great to hear! I crunched the numbers and as soon as I get this new job I should be able to comfortably have 350-400 a month go towards my $24k student loan and/or savings. That's after putting away 6% (3% match) into the company simple IRA. I've got to tell myself that it can't happen overnight.

They're sending me an offer letter today.

[Bucksandreds]

I didn't actually get aggressive until I started on this website at about age 31. I spent my first several years out of grad school spending everything after making near minimum debt payments. id be worth probably a quarter million dollars more if I were smart. Now my net worth goes up about half of my after tax income every month, not counting market gains. I'm 36 and had a negative net worth in my early 30's. I'll be a millionaire (on paper) in my early forties.

[big_slacker]

Well, I was technically living at my means till 30 because I was a snowboard bum and you just HAVE to be frugal. However I didn't start taking my finances seriously till maybe 36 or so when I a negative net worth and a bankruptcy. Early 40's now and around $200k NW, so I'm getting there. Luckily I haven't inflated my lifestyle too much from the snowboard bum days, although having a family definitely does cost. Mainly in housing in our HCOL area.

[SC93]

I've never lived above my means. When I was old enough to apply for a credit card my 1st thought was..... if I can't pay for this now, how can I pay for it in 30 days? So I never applied for one. The thought of going in to debt never crossed my mind because it seemed like so much pressure would be on me. So personally, I have no idea what it would be like to be in debt, that was about the only smart thing I did when I was 18. I did do a 90 days same as cash thing once but it seemed weird to me so I paid it off when I made my 1 and only payment 30 days later. I love an easy life.... I never have to think about what to pay and when to pay it or how I can get over on the system for $1 here and $1 there. I spend my time making $1000 while some worry about how to get around paying $15.

[Calvawt]

I never lived above my means either, but did not save much in my 20's.  Right before turning 30 I became a regional manager and my income increased enough to buy a house.  From 30-35 I saved a lot more and started maxing a Roth IRA each year as well.  Ironically, getting married and having kids caused me to want to save more so the last 3-4 years have had the highest savings rates for me.  Now at 40, I make well into six figures and have only a couple of years to FIRE despite 3 kids, a SAHM, and living in California.

Starting at 26, you still have tons of time to improve your situation.  As often stated, increasing your income is a huge part of financial independence as it doesn't require you to increase your spending to compensate.  As you get big jumps in income, your savings rate can skyrocket.

[WhiteTrashCash]

Well, not post-30, but I was 29 when I came down from Hillbilly Mountain and then built the very successful middle class life I have now. It's completely doable. It requires a lot more sacrifice than most people are willing to make, but if you are the type of person who enjoys simple pleasures, it's not really all that hard. As long as you live in a successful area of the country.

[Penn42]

I'm your age and went to school, acquiring debt in the process of course.  Once I graduated I went into the trades simply because they paid better than any options my degree gave me.  I managed to pay my loans off last December, so my savings is just starting to accumulate. 

Everyone's situation is so different of course, but I think one of the most important thing is to be conscious of your spending habits early.  Even if you can't FIRE in your early thirties you can still chop many years off your career in the long run.

[e34bb098]

I never went into debt for anything (including student loans) but mostly worked a dead-end job until my early 30s.  I contributed enough to my 401k to get the maximum match, but nothing beyond that.

Then that job went away and I managed to find a good job.  I continued to get the maximum 401k match but didn't invest or save really anything beyond that.  Feeling vaguely uneasy at my lifestyle inflation I googled around and found MMM, but thought it was ridiculous.  Save 75%?  Horsefeathers!  So I meandered over to Get Rich Slowly and found that a much less bitter pill to swallow.  I was saving 20%, twice as much as the conventional wisdom told me to!  Did that for a few years until I started feeling like it was (a) too easy and (b) not getting me where I wanted fast enough.

Managed to find ERE and that was clearly not an option for me.  I might try it if I were single and childless, but in my current situation it would cause divorce.  I remembered MMM and read a few articles, then decided to go MAXIMUM MUSTACHE and read the whole blog from beginning to end.  I drank the Koolaid good and hard.  I stopped 99% of all non-mandatory purchases ca. 2014, when I was 39.  I'm on track to be FIRE by the time I'm 49.

On one hand, it sucks, because had I known then what I know now, I'd be done already.

But, better late than never.  I'll take retirement 16 years before the usual age any day, if the alternative is zero years.

[Neo]

You have plenty of time. I didn't read to see if you listed how much debt you have or what you do for a living but you can change both those things. I was spending every dollar I had when I was 31 with nothing to show for it. Now I save 65% of my pay and have 6 rental properties with 18 total doors. I turned 34 last week. Things can change fast if you're dedicated. Your pay matters so do what you have to in order to make more. Think long term.

[Vegasgirl]

I was 29 when I met my current husband.  He's younger and had a fair amount of debt.  Once we got together we got serious about paying everything off all student loan/cc debt both mine and his.  It took a couple years but we've operated on a cash basis pretty much ever since then and have been decent savers.  I'm RE this year at 49.  He likes his job but we are FI so the decision is all his.

[MaxP0wer]

37 here.  Started to get finances in order about 5 years ago after a divorce.  Still made some mistakes over the last few years but I'm constantly fine tuning things.  Also had kids during that time so it only added to the stress.  I have a positive net worth and retirement savings so I know I'm on the right track.  Slow and steady.

If only I could find a DeLorean to go back 20 years and drop some knowledge on myself.

[lemonlyman]

I was about 30 and am 33 now. Had 2 kids since and am saving about 40% right now due to daycare. Live in a LCOLA.

[deek]

You have plenty of time. I didn't read to see if you listed how much debt you have or what you do for a living but you can change both those things. I was spending every dollar I had when I was 31 with nothing to show for it. Now I save 65% of my pay and have 6 rental properties with 18 total doors. I turned 34 last week. Things can change fast if you're dedicated. Your pay matters so do what you have to in order to make more. Think long term.

I really want to do what I can to increase my pay as fast as possible. I will likely be starting at about 37k with this new job. Maybe earn some certifications/attend a conference or two/etc and vouch for myself and my value to the company and see where it gets me. Or use this as a launch pad for something bigger. It will work out in time.

I've got about 26k in student loan debt and 6k yet to pay off my Hyundai Elantra. I also just switched over an old 401k to Vanguard so I will be putting that in index funds soon.

It's official. Just got the offer. Essentially getting a 2.27/hr raise from my current position. 38k offer for a position they start at 35k.

[Calvawt]

Congrats on the raise!  It may not seem like much, but your income can take big jumps and little ones, too.  That's about $4,700 more that you can use to pay off debt and save each year.

[LPG]

I always lived below my means, but only made it a priority in the last few years. Was in school until 25 (Master's degree), and maxed out my IRA during my late 20s. Enough 401k contribution to get the match, but nothing Mustachian. So I had good habits, but not great ones.

When I was 29 I spent a year working in Italy, which included a 1 year $50k reduction in salary. I did it because I always had the philosophy that life should be about life, not about money*. And spending a year living in Italy was cool. I'd do it again.

Since getting back from Italy, early 30s, I've made living below my means a priority. Suddenly I'm investing >50% of my take home, and am on track for FI around 40. This is while living in a HCOL (Northern CA) area. If I decide to move back to MN (Grew up near the Twin Cities), with it's lower cost of living, I could hit FI a few years earlier.

Even though I'm now much more aggressive about saving, I still wouldn't say that FIRE is a huge goal for me. FI is, though. This is ultimately because I like working. I'm in engineering research, and I get to do some cool stuff with some cool people. I like being creative and innovative. I like teaching people the things that I know. I like helping solve problems for my colleagues. What I dislike is the corporate environment, and all of the completely nonsensical expectations that come along with it. So my goal is to have enough of a stache for an absolute bare bones FI lifestyle, which gives me much more control over my work life. Then I can go independent, and do the projects I want with the people I like. And nothing else. I'd get less work, and have less income, and that would be just fine because my stache would be enough to live on.

*Yes, clearly these two impact each other. A lot. I guess what I'm trying to say is that, while I'm certainly not willing to go into debt or be a spendypants, I'm also very willing to be a less aggressive mustachian in exchange for really cool life experiences.

[Tabaxus]

I'm actually the reverse... I lived well below my means after graduating law school when I was 27, until I paid off my student loans at the end of 2014.  From there I've unfortunately allowed myself to have fairly substantial lifestyle inflation.  Now I'm 33.  I still save a fair amount, so I'm still living below my means, but not by nearly as much as I used to--and I now have a newborn, so I need to recalibrate things to make sure I can save enough for college, potential private school depending on how the public school lotteries go in a few years, etc. 

[2Birds1Stone]

I just wanted to get an idea of this to assure myself that having debt at 26 and making less than 40k is not the end of the world. And maybe give others something to see that gives them hope and proves that patience pays off. I'm just starting to create some great habits, and while I wish I would've started at 20, there's still plenty of opportunity to FIRE.

I didn't get a job paying $39k till I was 24, and it was in retail. With no college degree I worked my way up to management and did that for 3 more years making ~50k/yr. By the time I moved into a more lucrative sales job, I had saved up ~$80k @ 27/28 years old.

You can definitely do it! Just focus on increasing your income over time, just like investments compounding, income growth compounding can have a tremendous impact after 5-10 years.

[deek]

This is encouraging. Keep it coming.

The fact that I'll be with a growth company that deals in products that are fun to learn about and fun to use helps a lot. This won't be near as boring as what I'm doing now. And having a young team around me will help motivate for sure.

[MasterStache]

I was into debt up to me eyeballs, essentially homeless and jobless at 22. Signed up and served 4 years to get my shit together. Left the military with no debt, some savings, a decent car and more importantly, college money. Graduated college as I was turning 31. Semi-retired at 41. Don't feel bad OP. Everyone has a unique story.

[soccerluvof4]

I made it and spent it. Started to get my shit together in my 40's to be fire'd at 50.  Sooner you start the better. Oh if i could do it all over again!

[TheInsuranceMan]

I just wanted to get an idea of this to assure myself that having debt at 26 and making less than 40k is not the end of the world. And maybe give others something to see that gives them hope and proves that patience pays off. I'm just starting to create some great habits, and while I wish I would've started at 20, there's still plenty of opportunity to FIRE.

I'm now 30, wife 29, two kids at home, she makes less than 40k, and I eclipsed 50k for the first time ever last year.
We've got 80k or so in retirement, student loans at 14k, small mortgage at 21k, and I think we owe 10k on her car yet.  With kids, it's certainly been a challenge, not that I would trade it for the world.  $12-$13k in daycare expense a year is killer.  We are having a heck of a lot better start to 2018 than we did in 2017 though, even with my work bonus being a few hundred less than the year prior.  We've paid off a $3,000 HELOC (not the exact amount listed there, but I don't have the specifics off hand), have our savings account where we are comfortable with it at, and are sitting on a bit of cash in the house that we are debating what to do with it.  It's between using it to finish a living space in the basement (#3 comes in late August) which would allow us to give some more room to the kids and their toys, freeing up some other spaces, or move it to the emergency fund.  Leaning hard towards finishing the basement with it, or a portion of it.


Long way to say yes, we lived with a bit of debt in our 20's, had our first kid while my wife was back in school, running on one income while owning an acreage and repaying student loans.  Lived above our means for sure - working on fixing it.

[tyrannostache]

We started at about 37, when DH and I both got our first post-grad school jobs.

DH and I did a lot of goofing around in our early-mid 20s and worked below our skill levels. We spent nearly a decade in grad school altogether and had 2 kids. During that time, we didn't go into any debt and we did live very frugally. However, our earnings were low enough that we didn't think we could do a heck of a lot of saving. We each made around $22K/year. If we had found MMM, I'm sure we would have managed to save more, and I would have poured more effort into my side/summer hustle.

Today, we both have PhDs and are enjoying the post-academic life, and we're getting our house in order. We definitely won't be retired by 40, maybe not even 50. But frugality means that we are able to do work that we both enjoy, DH can focus his time as an independent contractor on stuff that he loves, and we can live (mostly) in the way we would like to live.

We probably could have made vastly different choices in terms of school and jobs and family in order to be much closer to FIRE, but we're doing a lot to make up for that now. I don't regret the choice to finish a PhD--it has led to some really interesting career moves for both me and my partner. And I definitely don't regret the kids. They are the best. I only wish we had found MMM earlier.