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Brandon Ganch, known online as the locoscientistHe retired in 2016 at just 34 years old, saving aggressively and keeping his expenses tight.
While he does not regret the wealth generated by his “hyperconcentration” in saving 70% of your income“I could have taken my foot off the gas knowing what I know now,” he told host Paula Pant on a recent episode of the show. Podcast “Allow yourself anything”.
In the lead-up to early retirement, the software developer and his wife lived frugally “in the woods of Vermont” as they sought financial independence. But during that time, “I became deprived and neither my wife nor I were happy,” Ganch said.
Now, with two young children, her spending habits have changed. Instead of being “hyperfrugal,” he prioritizes spending on things that improve his family’s quality of life, such as buying a house in Scotland, where they now live, a decision he described as “pure luxury,” compared to his frugality. former. .
“I am enjoying being a homeowner for the first time in my life,” Ganch told Pant. “I don’t let it stress me out. I know there will be expenses,” so he doesn’t worry as much about “saving every penny.”
‘Not maximizing net worth’
Ganch’s mindset shift came from reading Bill Perkins’ “Die with Zero,” a book that emphasizes balancing financial independence and enjoying life’s experiences in the present, not just saving for the future.
Looking back, Ganch wishes he had embraced certain moments in his 20s, like bachelor parties he skipped to avoid expensive plane tickets.
“I wouldn’t want to go on a drunken weekend right now when I’m 40 with my friends, but I’m sad that I missed that when I was 20, because it would have been so much fun, and we would have had great stories to tell,” he said. .
He still appreciates the freedom of retiring early and aims to keep his savings intact, but he has become more relaxed about his spending. “You don’t maximize net worth. You have to maximize net fulfillment,” he said.
‘My biggest financial regret was not my spending, but my thoughts’
Like Ganch, Alex Trias wishes he hadn’t been so obsessed with reaching his goal of retiring early. Before the tests He retired at 41 and moved to Portugal With his wife, he spent years obsessing over his investments, a habit that, in retrospect, he wishes he had avoided.
“My biggest financial regret was not my spending, but my thoughts,” Trias previously told CNBC Make It. “I used to think all the time about investing at a low price, waiting, and then selling at a higher price. I can’t begin to explain the anxiety and waste that this type of mental framework caused.
Looking back, “I think trying to pay attention (to his net worth) month to month or even year to year is probably counterproductive,” Trias said. “Don’t focus so much on the end result but on the habits you are forming.”
Sam Dogen, founder of financial samurai and author of the upcoming book, “Millionaire milestones,” doesn’t regret his decision to retire early, but wishes he had spent a few more years in the working world.
“I now realize how absurdly young I was when I retired,” Dogen, who retired at 34, wrote in a 2019 article for CNBC Make It. “Several people even commented on how irresponsible and reckless my decision was, especially since I was just entering my peak earning years.”
Dogen spent 13 years in investment banking before retiring with a net worth of $3 million that generated around $80,000 in annual passive income. But staying a little longer would have allowed him to save even more for retirement and potentially explore new opportunities.
“Looking back, I could have stayed at least one more year and found a new position within the company in a different office,” he wrote. “I always wanted to work abroad, somewhere like Hong Kong, Taiwan, Beijing or London. Maybe that would have rejuvenated my interests and convinced me to work for a few more years.”
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