Greg Lesko On How To Retire YoungPosted: Updated:
Bryanna: Retire in your 20’s? One woman did. Greg Lesko of Lesko Financial explains. Greg…
Greg: Thanks Bryanna … when a woman named J.P. Livingston achieved two and a quarter million dollars in savings last year, she decided to retire at the age of 28. She didn’t start life as a trust-fund baby and she didn’t inherit money in anyone’s will. She saved it. It may sound unbelievable, but at a time when the average American’s retirement savings is said to be sadly underfunded, this millennial became a millionaire before her 30th birthday.
Bryanna: How did she do it?
Greg: She started early -- with a calculated plan for financial independence -- involving a good education, a frugal lifestyle and smart investments. She graduated from Harvard with no student loan debt, funding her education with scholarships and her family’s savings. She got a four-year degree in just three years and a job in the financial industry, eventually earning a six-figure income. She saved most of that, and limited her spending to $30,000 a year and that even included steep Manhattan rent. She remained thrifty and didn’t spend more as her salary rose. Then she put her money into shrewd investments and watched it grow.
Bryanna: What lessons could we learn from her example?
Greg: First, commit to financial independence as early as possible. For higher education, take advantage of accelerated programs and don’t burden yourself with oppressive student loans. Next, seek jobs with high income potential and work to maximize your earnings. Most importantly, be frugal and prioritize saving over spending. And finally, invest. Let the power of compounding grow your wealth while you continue to save.