A young mother plans to retire by the time she’s 35 after building an extraordinary $2 million investment portfolio.
Michelle Ives, 29, from NSW’s Central Coast, plans to retire within the next six years and live between $70,000 and $100,000 a year with her husband Andy and one-year-old son on the money they’ve earned with investing.
The devoted mother and her husband invest up to 80 percent of their earnings each month in real estate, stocks and stocks, make retirement contributions, and invest in bonds and commodities.
Ms. Ives claims that her family only buys things that make them happy and that they don’t spend pointless shopping, dining out, beauty treatments and high-tech gadgets.
Michelle Ives, 29, from the Central Coast of New South Wales, plans to retire within the next six years and live between $70,000 and $100,000 a year with her husband and one-year-old son with the money they have earned by investing
The mom runs her own copywriting business and has her own blog that promotes her belief in FIRE – which stands for Financial Independence Retire Early.
She shares her tips and tricks for saving and investing and encourages other families to start planning for retirement much earlier than they previously thought possible.
“The fear for me is sitting at a desk for 60 years and filling someone else’s pockets and being beckoned by a boss or company and relying on them for safety — that scares me,” she says. told news.com.au.
Ms Ives has been working since she was 14 and previously had a job as a journalist.
But she said she was never excited by a future of toiling in an office until she was in her sixties or seventies.
The 29-year-old said the theory behind the FIRE movement was to take disposable income and save as much of it as possible and put it into investments.
She and her husband try to save as much of their earnings as possible and invest regularly to ensure they can build a substantial nest.
Ms. Ives runs her own copywriting business and also has a blog where she encourages other savers to invest for early retirement
“It advances the retirement age by decades than people can otherwise realistically do. For some people it’s 40 and for some people 30 is increasingly becoming the retirement age,” said Ms Ives.
MICHELLE IVES’ SIDE HUSTLE TIPS
Ms. Ives said there are several easy ways to make extra money.
– watching out for pets or walking pets
– tutoring or teaching
– participate in paid surveys
– sign up as mystery shoppers
– renting out a car, garage or room in your house
– sell things at home
– freelancing your skills, e.g. web design or writing
– get a weekend job
– drive as for Uber or Ola
– jobs like on AirTasker
The family regularly contributes to low and moderate index funds and also contributes the maximum amount to their super funds so that they end up paying less in taxes.
They invest about 50 percent in real estate, 25 percent in stocks, another 20 percent in retirement, and five percent is used to pay off their mortgage.
“We’re more frugal than most and we don’t spend hundreds a week on online gadgets or fancy restaurants or beauty treatments or products and that doesn’t mean we don’t do it, but we do it less than others,” the mother said.
In an earlier conversation with Daily Mail Australia, Ms Ives said you don’t have to make a fortune to save.
“Although I had two big roles before, they were both in startups and so the funds were always very meager,” she said.
“My salary was modest to say the least — and so was my husband. We both always had an average income.’
However, she said the couple learned to “nest money away like squirrels.”
“It requires many late nights reading books, articles and reports on everything from stocks to bonds to real estate markets, but it’s worth it in the end,” she said.
Within eight years, Mrs. Ives and her husband managed to save $500,000, which she put into investments.
One crucial tip she has for other Aussies planning to invest is the four percent rule.
This means that after you retire, you will never invest more than four percent of your invested money per year.
This rule is designed to provide the retiree with a steady stream of income while maintaining an account balance that will keep income flowing throughout retirement.
She says those who want to start saving should start with investing about five percent of their earnings and work their way up to ten or twenty percent.
Michelle Ives (pictured) and her husband Andy, who lives in Sydney, are ‘very excited’ about their future after using the FIRE method to save their hard-earned salaries
How can you save thousands of dollars?
1. Live within your means: Live for the salary you have, instead of the one you want.
2. Make Minimalism Your BFF: Buy only what you need, rather than what you want.
3. Invest and save money: You have to work on a growth strategy that yields a higher return.
4. Make Money Your Queen: Spend money instead of credit cards and try to make sure you have an emergency fund.
5. Maximize Your Retirement: This will help you later.
Mrs. Ives’s blog Girl on fire explains that during her working life, she has often had “side jobs,” such as babysitting, walking dogs, completing random paid surveys, and even getting weekend jobs, such as waiting tables in a cafe.
The mom of one said for those wanting to start investing, the sooner they do, the better off they’ll be.
“The key is to simplify. Everything. Not just your money, but your life. In short, find out what gives you joy and security? Spend that,” she says in a blog post.
Another crucial tip she follows is to get rid of your debt as much as possible and not get stuck in unpaid loans.
“It will hinder you from accessing the good debt of wealth-building, such as business loans, home loans, or even debt recycling capital,” she says.
Ms. Ives also encouraged families to establish an emergency fund in the event of job loss, critical illness or in the event that they lose their home due to environmental factors.
“This way of life is not for everyone, and of course everyone’s situations will be very different,” she previously told the Daily Mail Australia.
“But for anyone who wants more control over their life and finances, FIRE could be a great place to start.
“I’ve read that people are getting out of debt, changing their family tree, and finally feeling confident enough to start personal business ventures. And the idea that it all starts with such a spark is great.”
Ms Ives said that throughout her working life, she often had an “afterthought” such as babysitting, walking dogs, completing paid surveys at random and even getting a weekend job, such as waiting tables in a cafe.