How to Save $100,000 by Age 25

I won’t lie. These factors may have contributed to my general enthusiasm about life. But there’s another reason I sometimes stare into space and smile at nothing (even if anyone in the vicinity thinks I’m a crazy person).

For the first time in my life, I have absolute freedom to only pursue the things that interest me. The last two decades have been an uninterrupted freight train of schooling and work, so it’s a pretty surreal feeling. There are moments of pure elation, and even the occasional faint trace of guilt. Did I cheat, somehow? Surely it can’t be this easy? I’m waiting for a giant skyhook to descend from the heavens and hoist me up by the seat of my elephant pants, violently jerking me back into reality.

It wasn’t until 2013 that I even twigged this was an option. I’d been working as a business journalist for a couple of years, and one of my responsibilities was researching and writing personal finance features.

I’d chosen the topic of ‘net worth’, which is defined as everything you own, minus everything you owe. Naturally I was curious what my own net worth was, so I did the math.

It was a negative number. My savings and other assets were completely wiped out by my debts – and then some. Finding out you’re worse off now than when you first entered the world as a naked, screaming, hairless maggot is kind of depressing.

It wasn’t much consolation knowing most twenty-somethings were in the same boat, especially those with student loans. Unlike them, I made my living lecturing people on how to be good with money. The first penny dropped: It was time to shift up a gear.

Around this time I’d also started learning about the ‘early retirement’ and ‘financial independence’ movements. It turned out there were cadres of rebels around the world who flat-out rejected consumerism. They laughed mightily at the thought of 40 years of wage slavery, and retired decades earlier than everyone else.

I interviewed one of the rebel movement’s unofficial leaders, Pete Adeney, who saved enough cash to quit work at age 30 so he and his wife could spend more time with their boy.

Another penny dropped. The money habits of Pete and his peers were some next level shit. Conventional personal finance “wisdom”, like the stuff I’d been dishing out, was that you should aim to save 10 per cent of your after-tax income. These guys saved half their pay, or more – and they did it in style.

How to Win the Jackpot

The more I read, the more pennies dropped. Soon they were gushing out like I’d won the jackpot, albeit on the cheapest slot machine in Vegas.

This is the bit where I’m meant to plug my guide to red-hot growth stocks, or sign you up to some scammy forex trading course.