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Meet Daniel. He’s a 36-year-old Harvard Law graduate who works in New York as an attorney (but lives in New Jersey to avoid NYC taxes). You wouldn’t know it from looking at him because his suits are so threadbare that they’re falling apart, but he makes $270,000 a year. Unlike the rest of his colleagues who work in large law firms, Daniel isn’t exactly fast and loose with his six-figure salary. He survives on a diet of rice and beans and beats himself up when he “splurges” on Chipotle. The most expensive pair of work shoes he owns cost $60, and the rest are from thrift shops. He doesn’t turn on the heat in winter; he just puts on additional layers of clothing. He doesn’t even own a TV.
Daniel’s frugal life may sound incredibly boring and, well, awful, but here’s a little secret about him: He’s saved 70 percent of his salary over the years, his IRA has been maxed out for almost 20 years, and he’s got more than $400,000 ready for the future.
Daniel plans to retire in the next three years.
How did he save so much money? According to a profile piece in the New York Post, Daniel subscribes to the financial independence, retire early movement (FI/RE):
The money philosophy — essentially, save fast and early so you can quit working young — is gaining traction among millennials who have had a taste of office drudgery and want nothing to do with it. Followers combine investment hacks with old-fashioned penny pinching to build up enough savings to quit their 9-to-5, well before their 60s. They’re also committed to a monastic existence, even amid NYC’s many social temptations — drinks with co-workers, workout classes and even the odd fast-casual Friday lunch.
Daniel’s stingy lifestyle has been quite detrimental to his social life — or complete lack thereof). He’s single (“My previous ex-girlfriend never really got on board. Her concept of what I was doing was being cheap, and depriving myself and her.”) and has trouble relating to his coworkers (“They talk all the time about the fancy restaurants, bars and Broadway shows they’re going to.”). At least soon he’ll be able to leave the Biglaw life behind and trade his long working hours for more leisurely pursuits.
But for now, the all-consuming FI/RE life is what what keeps him going: “I’m trying to get to a point where nothing besides death can stop me.” Best of luck, Daniel.
Inside the strange, secretive lives of rich millennial cheapskates [New York Post]
Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.