When I set the goal to retire by the age of 40, my financial advisor laughed at me. I’d read about the FIRE movement, but I didn’t know anyone in real life who’d actually done it. I certainly didn’t grow up with the blueprint.
I’m the eighth of my dad’s nine kids. My dad didn’t retire until his 70s, after dedicating decades of his life to long office hours. And my mom didn’t make it to a traditional retirement — she was forced to stop working early due to medical challenges.
Growing up, money always felt like something to be anxious about, not something that could buy you freedom. But then I realized it didn’t have to be that way.
Building a new blueprint
Still, I decided to try something different, even though people called me selfish, snooty and overconfident as a young Filipino American woman.
This year, I turned 40 and hit my goal of saving enough to retire. No trust fund, no silver spoon, and done despite carrying $300,000 of debt, including student loans, mortgages and everyday bills.
And here’s the wild part: Even if I hadn’t hit that goal, I would still be far better off than if I’d never tried. Here’s why.
It’s commonly accepted that retirement happens at 65, after decades of persistence and hard work. But retirement isn’t about reaching a certain age — it’s about reaching a point where your time is yours. How do you get there?
The 4% rule
Many retirement experts follow the 4 percent rule, which recommends using 4 percent of your retirement savings in your first year of retirement, then adjusting that amount annually for inflation, to make your money last for about 30 years.
Opponents of this rule claim that it’s imperfect because it fails to account for rising life expectancies and assumes fixed spending and a particular allocation of investments.
This rule changed my life. By having a dollar amount to target, I could start working toward my retirement goal, rather than feeling trapped by the amorphous goal of saving “as much money as possible.” More importantly, I began to look forward to a day when I could imagine going to work because I want to, not because I have to.
If you can’t fathom reaching “retirement,” replace the word with “freedom” instead. Freedom could mean quitting a job you hate, switching to a slower-paced lifestyle, traveling more or even working part-time on projects that energize you. Retiring early doesn’t mean you stop being productive and start spending your days at the bingo hall. It means you stop being trapped.
The earlier you aim for that level of freedom, the more of your life you can enjoy on your terms.
When I first started aiming for early retirement, I knew little about investing, real estate or building a business. Setting an ambitious retirement goal pushed me to learn, and that knowledge became even more valuable than money because I turned it into a long-term habit.
Pursuing early retirement helps you build:
You also gain confidence in your ability to maintain healthy boundaries, like saying “no” to toxic work environments and relationships. These skills will benefit you whether you retire early or not. You’re not just building a retirement plan — you’re building money habits to create a less complicated, more peaceful life.
Read more: How to save for retirement
Setting a lofty goal like early retirement forces you to act with urgency and intention. You make different choices.
To accomplish the goal to which I felt so dedicated, I lived like a college student well into my 30s, pinching pennies and saving like a miser. I kept it up even after paying off $300,000 of debt.
I saved more than 50 percent of my income. I built multiple income streams. I said no to lifestyle creep, even when I could “afford” it. That urgency builds a muscle that many people never develop when they assume they’ll just work forever.
Did you know?
More than one in five Americans (22 percent) say that their top financial regret is not saving for retirement sooner, according to Bankrate’s Financial Regrets Survey. And over half (57 percent) of Americans feel behind on their retirement savings, according to Bankrate’s 2024 Retirement Savings Survey.
Aiming for early retirement influenced how I spend, save and invest now, not decades from now. The unintended consequence of working toward early retirement was that I developed the habit of prioritizing building and maintaining a strong savings account, regardless of whether I met the goal of retiring early.
Just 46 percent of U.S. adults have enough money in an emergency savings account to cover three months of living costs, according to Bankrate’s 2025 Emergency Savings Report. I feel confident that the cushion I’ve built could help me weather several bad years, not just weeks or months.
And when emergencies arose, like my car breaking down or having to find a new apartment at the last minute, I didn’t have to derail my investment goals. My savings habits afforded me a buffer.
When I ask people what they want to do when they retire, I hear the same thing over and over: travel.
But the reality is that traveling in your 40s or 50s is a vastly different experience than trying to do it in your 60s, 70s or 80s. I’ve traveled extensively in the past three years, largely influenced by my parents’ failing health — my father passed away from an unexpected brain aneurysm, and my mom is in chronic kidney failure. They never had the opportunity to travel like they wanted to, but they made sacrifices so that I could live a different life. I don’t want to take that for granted.
Here’s what I realized and constantly remind my clients:
-
Money is renewable. Billionaires have more money than they can spend in a hundred lifetimes. You can always earn more.
-
Time and health are finite. You can’t buy back your youth or physical ability.
-
Worthwhile experiences require energy. You won’t have the mobility to fully enjoy traveling and making memories decades from now, even if you’re someone who stays in top shape.
If travel is a dream of yours, why wait until your knees hurt or your doctor’s appointments become a full-time job? Aiming to retire early means you’re more likely to enjoy that freedom while your body can keep up with your bucket list.
If you set the goal to retire at 55, but “fail” and retire at 60 instead, you’ve still gained five extra years of freedom compared to the status quo. That’s half a decade of energy, health and flexibility you bought back for yourself.
Building wealth isn’t just about money — it’s the ability to experience life now, not just later.
I get it. Early retirement can sound like a luxury when you’re just trying to keep your head above water. Maybe you’re carrying student loans, battling with credit card debt or just beginning your retirement fund. Are you on track for retirement?
Sure, the best time to start saving was years ago. But the second-best time is now. It’s never too late to start striving for the life you want.
So if you’re feeling behind, here’s what to do:
-
Let go of the past. You can’t change the past, but you can change what happens next.
-
Re-evaluate your biggest expenses. Most people have more wiggle room than they think. Housing and transportation are often the biggest opportunities to trim costs. I downsized relatively young, which significantly accelerated my retirement savings.
-
Diversify your income. Pick up a side hustle. Give yourself a raise. Monetize your skills.
-
Surround yourself with people who are living your dream. I didn’t hit my goal alone. I learned from investors, joined communities and saw myself as a mentee of those who’d met their own early retirement goals.
Next steps: Use a retirement calculator to set your savings goals
You don’t have to retire decades ahead of schedule to reap the benefits. You just have to get closer than you would have otherwise. Even if you “fail” at retiring early, you’ll retire with more money, more options and more peace of mind than if you’d stayed on autopilot.
Retire at 40? Amazing. Retire at 50? Still awesome. Retire at 60 with no debt and total control of your time? Worth every sacrifice. Buying yourself even an extra day of freedom is worth changing your money habits today.
Don’t be afraid to aim higher than what you’ve been told is “normal.” Normal is broke, stressed and overworked. You deserve better.
