I’m Middle Class and Retired in My 50s — Here’s How I Did It
Written by
Cara Danielle Brown
Edited by
Zuri Anderson
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Anthony Damaschino is a 57-year-old award-winning author and self-described “recovering HR executive.” What makes him most distinct amongst his peers, however, is the fact he retired at just 52.
But Damaschino did not come from money and does not count himself amongst top earners. Damaschino is an everyday, middle-class American living in San Francisco.
So how did Damaschino retire in his 50s? Here are four strategies he swore by.
Get Debt Free
Becoming and staying debt free has been a crucial part of Damaschino’s early retirement journey. This is because, as he explained, the interest that accrues is akin to lighting money on fire — which is why he does his best to either eliminate debt swiftly as or avoid it altogether.
“Here’s how I looked at it: A $600,000 mortgage at 5% over 30 years is roughly $3,221 per month (principal plus interest),” he noted. “Over time, that’s about $1,159,500 total, meaning roughly $559,500 in interest. If you pay it off in around 10 years, the interest drops dramatically.”
True to form, Damaschino paid down his mortgage as fast as he could — starting with a 30-year, refinancing to a 15-year and ultimately paying off his mortgage in 12 years.
Elsewhere, he made sure he had no student debt or car payments.
“If I don’t have the money, I save. I don’t ‘need it’ today,” Damaschino added.
Spend Frugally
It’s not necessarily the big purchases that drain one’s finances — sometimes it’s the everyday, small purchases that add up over time. Which is why Damaschino has remained notoriously frugal.
Choosing to avoid labels or brand names, he either bought everyday items on sale or waited for them to go on sale. Additionally, he’s always opted for function over form. Damaschino proudly drove each of his cars for over twelve years, choosing not to re-up every three years “for something with four wheels that gets you from point A to point B.”
Ultimately, he preferred treating himself to experiences over material possessions.
“I’m not cheap about life,” he stated, “I’m just ferociously frugal about day-to-day spending.”
Save Automatically (and Scale Up Over Time)
“Debt free and frugal mean nothing if you don’t save,” emphasized Damaschino, who has been funneling money automatically to his 401(k) account, IRA and savings accounts since he began working as a teenager.
In the early days, he began by setting aside what he could afford: 5% of his monthly paycheck. Once his mortgage was paid off, however, he was able to save between 30% to 50% of his paycheck.
“The key is that the money never hits your checking account,” stated Damaschino. If you don’t see it, you don’t spend it.”
Actively Boost Compensation
Damaschino admit he couldn’t have retired early on Starbucks or FedEx wages. Not only did he actively seek out jobs that paid a livable wage, he only took jobs at companies offering equity and stock options, as well as those offering pensions. (He admit he was lucky to find and receive both). He also took it upon himself to invest in rental properties to add extra income streams and accelerate his path to early retirement.
Final Take To GO
Damaschino encourages a simple philosophy: Live within your means and stop borrowing against your future.
“A lot of people bury themselves in payments before they even get a chance to build wealth,” he said. “Not every situation is a choice, but a lot of it is.”
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