Success Study – Staying With Your Parents Pays Off
Here’s an extra ordinary story of a young man who retired early.
Clint from Brisbane, Australia was 18 when he started working part time job in his dad’s business while studying mechanical engineer. He is earning $15,000 a year when he started. It is his goal to retire at the age of 30. Could it be possible? Let’s see his intelligent moves.
His father worked hard to be one of those who have “rags to riches” success stories. Being aware of the hard work and sacrifice that his parents did to have a better financial status, he used it as a motivation for his own financial freedom. He worked hard in both his studies and job.
He lived with his parents until he was 30, the very age when he reached an early retirement. Living with your parents wouldn’t be easy when most youths wanted to get out of their parent’s home as soon as possible. Most of his friends moved to their rented apartments and lived by their own before their age of 20. His friends wanted FREEDOM. Their solution – get out from their parents’ home.
Not with Clint. He saw a bigger picture!
A smart move he made at the age of 20. He purchased two Condo Hotel (condotel). With this investment, he is receiving $250 net from the dividends after paying his mortgage. This is a very intelligent move – somebody is paying for his units. And since he is still stays with his parents, he is not paying for his rent and food! He continues to save his income from his part time job; plus extra amount to save from the rental of his property.
By the time he graduated at 23, his father decided to go on early retirement. He took over the management of their business. At the same time, he purchased another two condotel units. This move made him another $250 monthly from the dividends. Now he is earning a total of $500 a month from his units, plus somebody is paying his units. He decided to put his annual income of $15,000 plus his earnings from his condotel investments in a mutual fund.
By the time he reached 35, decided to retire. He hired somebody to take care of their family business. He then decided to purchase his own house and finally moved to live on his own before marrying his girlfriend. While he is enjoying his retirement at the age of 35, his friends are still struggling to find their jobs. He can enjoy the rest of his life from the efforts he made during his early age while his friends are still trying to figure out how to find the FREEDOM they seek when they left the home of their parents.
How was he able to retire that early? Staying with his parents as long as he can allows him to save all of his paycheck from his part time job. He continues to receive his allowance (as a student) from his parents. He was able to save $21,000$ a year and invested in a Mutual Fund. For that $21,000 a year investment, assuming a 10% return annually, in 12 years, he has less than $500,000 working for him. His condotel has been paid-out, too, from the dividends he receives monthly.
|Year||Amount Saved||Total Savings & Interest|
|1||21 000.00||23 100.00|
|2||21 000.00||48 510.00|
|3||21 000.00||76 461.00|
|4||21 000.00||107 207.10|
|5||21 000.00||141 027.80|
|6||21 000.00||178 230.60|
|7||21 000.00||219 153.70|
|8||21 000.00||264 169.00|
|9||21 000.00||313 685.90|
|10||21 000.00||368 154.50|
|11||21 000.00||428 070.00|
|12||21 000.00||493 977.00|
Having a motivation can help you make sacrifices. While Clint sacrificed by not going out of his parents’ home too soon, he’s able to amass a fortune for the lifestyle of his choice.