American woman retired in 28 years with $ 2,5 million savings 

After seven years of work, an 28-year-old woman from New York has set aside enough money to retire.

Фото: Depositphotos

Her story told edition CNBC.

She uses the alias JP Livingstone and runs her own blog. The Money Habitin which she tells how at an early age she learned how to manage finances. When she was just 12 years old, she read the classic economics book, Rich Dad, Poor Dad, which sparked her interest in saving and investing.

I realized that she could save a significant amount by graduating from college in three years, a woman took advantage of this opportunity. According to her, it really helped her financially: she saved money for a year of study and was able to spend this year on making money, which in total gave her 150 thousands of dollars.

After graduating from college, Livingston got a job at an investment firm, her starting salary was 60 000 dollars plus a bonus at the end of the year, which was almost the same. In just one year, she earned just over 100 000 dollars.

In the following years, she received several promotions, and by the end of her career, Livingstone earned about half a million dollars a year.

After seven years of saving more than 70% of her income, Livingston managed to accumulate savings of 2,25 million, of which 40% were the result of successful investments and 60% from savings. The woman decided that this was enough to retire at 28 years old.

Today Livingston lives in New York with her husband, who still works, and a dog. They live on 65 000 dollars per year, which allows them to maintain a high level of savings.

According to Livingston, she made a lot of money, but she also used a lot of savings strategies over the years, including tracking her expenses and automating savings.

She also used a psychological trick to save money: you need to evaluate purchases not in dollars, but in the number of hours you need to spend on work to pay for this product.

“To achieve a high savings rate, start looking at your purchases in units of your time, not dollars. Instead of saying that new iPhone costs $800, you can do the math to figure out that it will cost you 60 hours of work or a week and a half of your life,” the woman said.

It really makes you doubt whether the purchase is worth the time spent.

In terms of more specific steps you can take to improve your savings, Livingston advises to identify your biggest expenses and cut them.

She also advises not to start living a luxurious lifestyle, even if you start earning a lot - it is better to try to maintain the same level of expenses as before.

Read also on ForumDaily:

How can you live in the US without credit when you have 13 children

How much should you save up to live comfortably in retirement in the USA

Pension in the USA: everything you need to know immigrants

Financial mistakes of Americans in 2017 year

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.