I Followed These 8 Rules To Retire at 54
Written by
Laura Beck
Edited by
Zuri Anderson
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Chris J. walked away from his corporate job in Charlotte at age 54 with enough savings to never work again. While his friends were still grinding through their peak earning years, Chris was planning his first retirement trip to Chania, Greece.
His early retirement didn’t happen by accident or lottery winnings. Chris followed eight specific rules that he developed over 20 years of disciplined financial planning. Here’s exactly what he did to achieve financial independence while most people are still decades away from retirement.
Rule 1: Live on Half Your Income From Day One
Chris started following this rule when he landed his first decent-paying job at 28. No matter how much his salary increased over the years, he never let his lifestyle expand beyond 50% of his take-home pay.
“When I got raises, bonuses, whatever, the extra money went straight to savings before I could get used to spending it,” Chris explained. “I automated transfers so the money disappeared before I could miss it.”
This rule forced Chris to make deliberate choices about spending while ensuring his savings rate stayed aggressive even as his income grew.
Rule 2: Buy Used Cars With Cash Only
Chris never had a car payment after his mid-30s. He bought reliable used vehicles with cash and drove them until repairs became more expensive than replacement.
His strategy involved buying three to four-year-old cars that had already taken their biggest depreciation hit but still had most of their useful life ahead.
Rule 3: House-Hack Your Way To Free Housing
Chris bought a duplex in his early 30s and lived in one side while renting out the other. The rental income covered most of his mortgage payment, property taxes and maintenance costs.
After five years of essentially free housing, Chris had built enough equity to buy a second rental property. He repeated this process, using rental income to acquire more properties while keeping his personal housing costs minimal.
By retirement, Chris owned four rental properties that generated enough monthly income to cover all his living expenses.
Rule 4: Maximize Every Tax-Advantaged Account
Chris contributed the maximum allowed amount to every available retirement account. He maxed out his 401(k) plan, backdoor Roth IRA contributions and health savings account (HSA) annually.
When his employer offered additional retirement plans like a 457(b), Chris enrolled immediately and contributed the maximum there, too. He treated tax-advantaged accounts like mandatory bills that had to be paid first.
“Again, I automated everything so I never saw the money,” Chris said. “If you never see it, you don’t miss it. I lived like that money never existed.”
Rule 5: Invest in Boring Index Funds Only
Chris avoided individual stocks, cryptocurrency, real estate syndications and any other “exciting” investments. His entire portfolio consisted of low-cost index funds tracking the total stock market and international markets.
This boring approach eliminated the stress of stock picking while ensuring he captured market returns with minimal fees. Chris’s investment strategy was so simple he could explain it in two sentences.
Rule 6: Increase Savings Rate With Every Raise
This rule is unique and, honestly, pretty fun. Instead of lifestyle inflation, Chris practiced “savings inflation.” Every time he received a raise or bonus, he increased his savings rate before adjusting his spending.
If Chris got a 5% raise, he’d increase his savings by 3% and allow his spending to rise by only 2%. This approach let him enjoy some lifestyle improvements while still accelerating his path to financial independence.
“Most people increase their spending with every raise and wonder why they never get ahead,” Chris observed. “I increased my savings first and spent what was left. Simple, but effective!”
Rule 7: Track Net Worth Monthly Like Your Life Depends on It
Chris calculated his net worth on the last day of every month without fail. He tracked assets, liabilities and investment performance in a simple spreadsheet that took 15 minutes to update.
This monthly ritual kept Chris motivated during market downturns and helped him spot problems before they became serious. Seeing his net worth grow consistently kept him committed to the other rules.
Rule 8: Define Your ‘Enough’ Number and Stick to It
Chris calculated that he needed $1.2 million in invested assets plus his paid-off rental properties to maintain his desired lifestyle indefinitely. Once he hit that target, he retired immediately without second-guessing.
“A lot of people keep moving the goalposts and never feel ready to retire,” Chris said. “I decided on my number when I was 40 and stuck to it. When I reached $1.2 million at 54, I was done.”
His “enough” number was based on the 4% rule, which suggested he could withdraw $48,000 annually from his investments without depleting the principal. Combined with rental income, this provided more than enough for his modest lifestyle.
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