How To Retire In 10 Years On A $70,000 Salary

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Grant Sabatier of Millennial Money went from broke to millionaire in five years and earned enough to retire at 30. He explains why anyone earning $70,000 or more could also save enough to retire in a decade.

To make that happen, you have to be willing and able to consistently save 50 to 70 percent of your income, he says, and that may require a major overhaul of your lifestyle. But you don't have to make yourself miserable. It all comes down to your attitude going into the situation, he says: "The important thing here is to realize that saving is not a sacrifice. It's an opportunity."

"You're going to have to live a little bit differently than most people," he adds. "You might be thinking, 'How can I live on $30,000 or $35,000 per year?' But you can live actually pretty well on $30,000 or $35,000 per year."

Sabatier emphasizes that making short term sacrifices now allow you the freedom of financial independence later. "You're probably thinking, 'Oh, I'd have to get a really crappy apartment or drive a really crappy car.' And the answer is: You might actually have to do that for a little while," he says.

"But we're not talking about doing that forever. We're talking about doing that just for a couple of years in order to bank and save and invest the difference."

If you're interested in retiring in 10 years, Sabatier offers three tips to make it happen.

1. Cut your housing expenses
What's your biggest monthly expense? For many people, it's your rent or mortgage. Sabatier recommends trying to decrease that number by as much as you can because it's a simple way to make a big impact on your savings.

"Live in the least expensive apartment that you can, get roommates, house hack, buy a two-bedroom apartment and rent out the other room to keep your housing expenses as low as possible," he says. "If you can cut your housing expense from $2,000 down to $600 or $700, all of the sudden, you've 10 or 15 years off the time that it will take you to retire."

2. Start a side hustle
You can only cut your expenses so much. But the amount you're able to earn is limitless.

"Go out and just try to make a little extra money," Sabatier says. "You don't have to go crazy, you don't have to go out and make an extra $10,000 or more per month. But every $1,000 you make and invest instead, that's going to cut literal months off the time that it will take you to retire."

He notes that it's also important to invest your extra income. By putting your cash to work, those earnings are able to grow, rather than sit in a regular savings account, where it can actually lose value in the long term.

3. Stick with it
If you want to retire early, the "most important thing" is to keep yourself motivated.

"I see a lot of people who get really excited and they're like, 'Oh my gosh, I'm going to go out and become financially independent. I'm going to retire early.' And then you check back in with them 90 days later and they're no longer doing it," Sabatier says.

Sabatier kept himself going by gamifying his savings. "This is one of those things where it can actually get pretty fun, and it can get really addictive," he says. Once you've got a little momentum going, he says, "look at your bank account every day for five minutes. … You're going to start seeing your money grow and that's all the motivation that you're going to need."

And don't get discouraged if you realize along the way that 10 years isn't a reasonable goal for your lifestyle. "Even if it takes you 12 years or 15 years, you've still retired early," Sabatier says.

About CNBC Make It.: CNBC Make It. is a new section of CNBC dedicated to making you smarter about managing your business, career, and money.

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34-year-old self-made millionaire: If you make $70,000, you could retire in 10 years—here's how | CNBC Make It.

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How to Retire with 70k per year
Guy: Make more than 70k

VenularSilver

1:05 "If you're making 70 000 dollars, make more". Genius

fireonwater

How To Retire In 10 Years On A $70, 000 Salary? 2. Start a side hustle, or several.

.... Well that's not a 70K salary anymore

tubevantedi

An early retirement calls for early financial planning, being overly reliant on one source of income is a bad idea, there are most people achieving financial freedom in the stock market.

jamesowen

lol this makes it sound very easy. but living in a cheap apartment with room mates eating on an extreme budget all while working almost all the time and not spending much money on fun things (trips) IS VERY hard to do for any significant amount of time. It's not for everyone.
Source: I am living like this right now.

logen

This was the most unhelpful video ever

marquiselogan

They must mean $70k net and not gross because once you take out 401k, Health insurance, Dental and Vision Insurance, Fed Taxes, State Taxes, FICA Taxes then all your left with is around $40k.

Praggle

2:12. Stare at your bank account for 5mins every day to see it grow. I knew I was doing something wrong

David-dqxg

And this $70k number came from where??

jim

Basically live like a bum in order to live like a retired bum. Forget this, don’t just save, in 10 years inflation will diminish your money, invest into a side-business, real estate, digital marketing or something you can own. Money comes and go don’t be attached or afraid to spend, instead learn a skill that makes you valuable knowing you can make as much as you want if you need to. Make more money, cutting down won’t help, but making more will ensure you retire not living with 5 other friends eating ramen in order to stay “retired”

LesterDiaz

Clicked for the girl in the thumbnail and didn’t see her...therefore dislike. SAD!

patrickm

wow, it's really sad to realize the system we are in forces everyone to spend the best of our years chasing money to later on hopefully get to finally "do whatever we want" after becoming old and frail.

wantandlike

Well, I already know from the beginning of this video I won't be retiring. Roommates? Cheaper apartment? I should live miserably to retire early? No thank you. Why not just have a career you love, that doesn't seem like work and you can do it until the wheels fall off? Live and love your life while spending in moderation and saving aggressively.

CC-sicr

Get out of debt, pay off your house early, invest in index funds and aim to save 75% of your income. I aim to save 100% of my income and i live off of the profits of an investment.

Crimson_