A self-made millionaire is sharing how he was able to retire early with the equivalent of £705,000 in the bank.
Steve Adcock left his corporate job in 2016 with around $900,000 (£705,807) to fall back on in retirement.
He now has a net worth of over $1million and offers financial advice in his newsletter: Millionaire Habits.
Mr. Adcock is one of the many adherents of the FIRE (Financial Independence, Retire Early) movement.
FIRE is the acronym given to the financial movement which is based on the idea of reaching an early retirement.
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Speaking to CNBC: Make It, the FIRE follower broke down the changes he had to make in order to make early retirement a reality.
The millionaire explained: “I used to think I couldn’t live without ESPN. But then we cut cable, and guess what? I’m still here. I’m still living and breathing without ESPN.
“The hardest part is getting over that initial hump of … ‘Oh, I can’t live without this.’
“You have to think, ‘I want to achieve this, so I’m no longer going to spend money on that.’ Once you’ve made that decision, everything becomes so much easier.”
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According to the early retiree, there are three things people need to do in order to achieve FIRE.
These include tracking their spending, working backwards to reach their financial goals and understanding what spending is “necessary” for the individual.
Mr Adcock added: “I would tend to think of every expense as a delay to reaching that goal.
“If you have a goal of retiring in 10 years, that vacation might keep you working for another six months. Is that worth it?”
One of the ways FIRE followers calculate their “number” for retirement is by multiplying their annual income by 25.
According to Mr Adcock, savers can estimate the percentage of their salary they will need to invest on an annual basis to reach their “FIRE number” within 10 years.
The personal finance expert said: “Once you have those numbers, you can work backward to figure out how much you can spend every month
“Then once you have that number, you can break things out into categories: spending on food, on your cell phone, on clothes, on rent, on entertainment.”
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