Retired at 42: How I Think Differently Than People Still Working
When I was a teenager, I came up with the phrase “Why wait for tomorrow?” That idea has driven me my entire life.
I developed a plan as a teenager to retire in my 40s. It panned out. I became a liquid millionaire at 38 and retired a few years later. This is despite no one giving me a penny, and not making more than $50k a year until I was 30.
This article isn’t just a timeline of my early wins. It’s about the mindset behind them. These are the real decisions that led me to retire at 42 and buy back my time.
Want to understand how early retirement actually happens? This is it.
Table of Contents
I Started College at 16, Graduated With Two Degrees at 20
I was a really bad student. The only thing that mattered to me was sports. I never took homework home, and I would study for tests right before class started. I also skipped school a lot. High School and me weren’t working out.
So I switched gears and started going to college. An adult didn’t tell me to do this. I did. I didn’t realize I was bored and high school was too easy, but I knew I needed a change.
At 16, I split my days between high school and college. I took classes on college campuses in the morning, then finish up high school stuff in the afternoon. When I finally got my high school diploma, I was already a college sophomore.
My 2.0 high school GPA didn’t matter when I graduated high school. Instead I got accepted to college as a transfer student based on my college GPA, which was solid. I kept pushing, finished two degrees, and was out of college at 20.
So what? If things aren’t working out, change your situation. If 16 year old me did it, you can.
As a Teen, I Started Buying Stocks
My family was full of small business owners. So while other kids were glued to video games, I was logging into E-Trade. I didn’t know everything, but I knew how companies worked.
All companies are simple. They are just lemonade stands trying to turn something into more cash. So I taught myself how to read financial statements and I focused on cash flow from operations.
I’d hoard whatever money I made and stash it in stocks instead of toys. It wasn’t flashy. It wasn’t fun. But it gave me a front-row seat to how wealth actually grows, and how most people miss it entirely.
So what? Investing isn’t hard. You just have to do it. Pay attention to cash flow from operations.
CFA Institute: 20 Common Investing Mistakes That Could Crush Your Portfolio
Also as a Teen, I Developed a Plan to Retire Young
When I was a teenager I knew I didn’t want to work my entire life. I knew I wanted to enjoy life. So I spent a lot of time at the library. I read whatever I could.
I was especially focused on Warren Buffett, Benjamin Graham, and Carleton Sheets. I also like parts of Robert Kiyosaki, but not all of it. The book that changed my life the most was The Millionaire Next Door.
I mapped it out. I created a two-phase plan: Build up enough in taxable accounts to carry me from 40 something to 60 something. Then have my 401k ready to carry me through retirement once I hit 60.
It wasn’t normal thinking for a teenager. But normal doesn’t retire early.
🙋♂️If this is interesting so far, follow DadisFIRE on MSN, then hit like to see more articles on financial freedom, personal finance, and smart money moves.💪
At 21, I Bought My First House With $800 Out of Pocket
After college, I didn’t wait around. I walked into a real estate office and said, “Who wants to sell a house today?” I meant it. I found one. Bought it. Rented it. I paid just $800 out of pocket, and that was the last time I ever put my own money down on an investment property.
Every house I bought after that I did with no money down. It turns out a down payment isn’t to protect the borrower, it’s to protect the lender.
The only house I’ve paid out of pocket for since is the one I actually live in.
When Is The Best Time To Buy A House? A Real Estate Pro Answers.
In My 20s, I Bought Rental Houses
In my early 20s, I started stacking rental houses. I was earning less than $50k a year at my day job and still figured out how to become a landlord. The total I ever paid out of pocket was $800, and that was back when I bought my first house.
After that, the cash flow and leverage handled the rest. I wasn’t sitting on a high salary. I just made different choices with the money I had.
I Maxed Out My 401k, Even Making Under $50K a Year
While most people treated their 401k like an afterthought, I treated mine like it was non-negotiable. I maxed it out even when my paycheck didn’t make that easy.
My income was under $50k well into my 30s, and I still put every allowed dollar into that account. My real income started only after I hit the contribution limit. That mindset forced me to live lean, but it also gave me control of my future before most people even think about it.
That tradeoff bought me something no paycheck ever could: freedom.
Should I Max Out My 401k? A CFA Who Retired Young Answers
I Bought Houses With No Money Down, Then Let Tenants Pay Them Off
I bought houses with no money down. That wasn’t luck, it was strategy. I didn’t care about flipping or cash flow in the beginning. My plan was simple: let someone else pay off the mortgages, then sell the paid off houses.
In my early 40s, I sold those properties, fully paid off, not by me, but by the people living in them. That’s how I turned borrowed money into freedom.
Related Video: Carleton Sheets’ Secrets To Buying A House With No Down Payment
I Paid Discount Points Instead of Big Down Payments, Even With PMI
A 20% down payment doesn’t protect you, it protects the lender. As a CFA with decades in real estate, I’ve modeled enough mortgage scenarios to know the math.
I chose to pay discount points upfront instead. Sure, that meant PMI for a while, but I didn’t care. I went with 15-year mortgages, and the PMI disappeared quickly.
🙋♂️If you like what you are reading so far, subscribe to the DadisFIRE newsletter and follow DadisFIRE on YouTube.💪
I Spent Big on Long-Term Savings to Cut Monthly Costs
Six years ago, I dropped $25k on solar. This winter, I spent another $23k on a high-efficiency HVAC system. All that just to save a few hundred a month. Most people think that sounds insane. But my time horizon isn’t next year, it’s next decade.
I make big money moves today so my expenses stay low for the long haul. That’s the kind of thinking that makes retirement possible way before 65.
I Have NEVER Tried to Get Rich Quick
I’ve never once tried to get rich fast. No crypto rush. No lottery tickets. No flipping. Just slow, boring, consistent moves stacked over time. I’ve watched people jump on trends and flame out while I stuck to the plan and built a real foundation.
Fast money usually ends up in someone else’s pocket. I’d rather be slow and free than flashy and broke.
I Became A Millionaire In my 30s: Here Are 25 Things I Know, That Most Never Figure Out
I Am Immune To FOMO
I am completely immune to the fear of missing out. Actually when people get excited about something I get turned off. I do not chase trends.
When everyone wants a certain brand, car, house size, or anything really, I simply don’t care. I don’t have a need or desire to fit in. I would rather have money that makes me happy.
I Prefer Stealth Wealth
I do not have a need to show off my wealth. The Millionaire Next Door taught me that most people with money appear to be everyday people.
It also said that most high-income earners have low net worths. Why? Because those people are trying to show people they have money. I don’t have that insecurity.
I prefer to have money than for people to think I have money.
There is a really important lesson in this.
Stealth Wealth: The Key to Keeping Your Wealth and Your Freedom
I Think Differently, and It Paid Off
The difference isn’t luck. It’s how I think, and what I’m willing to do today to make tomorrow easier. I’ve always believed in paying now so I don’t have to pay later. That mindset built a portfolio before most people had their first promotion.
I didn’t chase trends. I made small, smart moves and let time do the heavy lifting. I built systems, not shortcuts. I made choices that looked boring to other people, but they gave me freedom they’ll never have.
The results? Liquid millionaire at 38. Retired at 42. But more than that? I’m happy.
🙋♂️If you like what you just read, subscribe to the DadisFIRE newsletter and follow DadisFIRE on YouTube. 💪 Also be sure to follow DadisFIRE on MSN💰
